law-reimbursement-claim-in-divorce property division
Reimbursement Claim
The trial judge refused to reimburse “prior sums awarded as interim attorneys' fees to Elizabeth” because they
“effected a just and equitable division of the community income out of which they were paid.” Although labeled
attorneys' fees, the record reflects that the money Edward wants reimbursed were proceeds from quarterly
dividends of Nordasko stock issued to its shareholders between the Fifth Anniversary and the Divorce Date.
Edward admitted that the $64,000 at issue only reflected two of sixteen quarterly dividends See Footnote 6 he
received between the Fifth Anniversary and the Divorce Date.
As dividends, these payments constituted income. Fischer-Stoker v. Stoker, 174 S.W.3d 272, 279 (Tex.App.-
Houston[1st Dist.] 2005, pet.denied) (“[D]ividends paid on investments, whether the investments are separate
property or not, are income under Texas law and generally community property”). Under Section XVIII of the
Agreement, income “yielded by separate property” paid after the Fifth Anniversary and before the Divorce Date is
community property. As such, the trial court has broad discretion to determine how to allocate the money. Penick
v. Penick, 783 S.W.2d 194, 198 (Tex. 1988); Hailey v. Hailey, 176 S.W.3d 374, 384 (Tex.App.-Houston[1st Dist]
2004, no pet.) (trial court has broad discretion both in evaluating a claim for reimbursement and making a just
and proper division of the community). Further, as community property, Edward has no right of reimbursement of
funds identified as dividends because they are already part of the community marital estate defined in Texas
Family Code Section 3.401(4)(A). Tex. Fam. Code Ann. § 3.401(4)(A) (Vernon 2006). We overrule Edward's fifth
issue.
08-0728
ELIZABETH W. BUFKIN v. EDWARD O. BUFKIN, JR.; from Dallas County; 5th district (05-06-01719-CV, 259
SW3d 343, 07-01-08) 2 petitions, pet. denied Nov. 2008)(prejudgment interest, admissibility of expert testimony,
harm analysis of evidentiary ruling by trial court, divorce fault grounds, prenup, stipulation agreement)