HB 908 - In House Bill 908, the Texas Legislature took up the problem of fraud in divorce cases. Under the act, a man who takes money from the man and wife’s joint bank account, and [1] hides the money, or [2] foolishly spends the money, and [3] fails to say where the money is, is guilty of fraud. This is not a new problem in divorce cases.
ADD IT BACK -The new act has a new solution. The Court will find out how much money is still in the bank account, then add the missing money back to the account, and divide the money and property between the parties.
Example -Suppose the man and wife had a joint account with $50,000, which is now missing, and a $50,000 house. Because the man stole the money in the bank, he gets the missing money, wherever it is. The wife gets the house. It is a 50 – 50 split.
Uh-Oh - If the man spent all the stolen money, then the man still gets his 1/2, worth $0. The wife still gets her ½, the house, worth $50,000. It is still a 50 – 50 split.
The Court may also award a money judgment in favor of the innocent spouse.
The new law appears to be aimed at the man, with an evil heart, stealing from the innocent wife.
Both guilty - What if both spouses are guilty?
If the husband takes his girlfriend to Vegas, and the wife sells the furniture to buy recreational drugs, both spouses stole property. Does the court divide the amounts stolen by both parties?
Was it intentional or reckless? - What if the man spends the money from the joint account to start a business, that fails?
Will his wife claim he foolishly spent their money on the business? Won’t she say the business was a bad idea and he stole their money for the business?
House Bill 908 has been reported out of committee favorably and appears to be uncontested. If the new act passes, the trouble will begin on September 1, 2011. The new act will apply to all divorces pending at that time and to all new divorces.
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