# x

.;\; / \y OFFICE OF THE ATTORNEY GENERAL OF TEXAS

. AUSTIN

hnorablo Osville k. Csrpenkr chufrnn aa Xmoutfre DlroOtor Tex6r Un*mploymePt Compen8atioo Co6ani8rlon P,uetin, Texan

Dear Slir

#8~h8re rour req 

## l pplloablq to 

### thevariou8 q tlona outlined in mur lette

OlW4488.3 

## l rpretation ot the law under tour **tsot** dtua0uZ letter read81
8 not be8n 4.- 814nten into lu4ln the tiale

### ot th. k&e 8graement nake8 tal ot the **bMiner8 18**  upon the **ball18** ot h8r eOrf note, *lab18 in t 8qUd t0 One-h6ti 

### Ot A ona raerota their
part ia the %ntel.or dooorating bari**Z4OO@liM8 Et8**  **#M ’** **Xlitl@8 ,Or**  **plT4tit8** er repar8to 

### propert*.Wi4prerent8 to partntr8hfp Or4&i?&x8 thet 8h4 &nb.her 84p6r6t4 QmQ4XtJ are 2lable 

### torbubinaS8 

### dobtr**ot th,e**  

### partnership.. **A** and # h8VO 6iwB$W.h&4 **8et4B &?4F4948**  **ifi their**  

### W@iO~OILt, while Y-,who **I8** engaged La another **bosine88** which **b4 owaa**  **a8** his 8Ogar6ti4plWpf%f, iii%8 dWay8 4mpbr4d tire inditldualr'i

### lhn.r;rvills -.. **Cerpenter, page**  **SS**

me ~111 etste esch quecltlonand 8mm4r it a8 thsy 8pps6r ir.your letter in numerlcai order.

kueetlon (a): "Is 'Mlegally e partner with **h in**  the interior deooretiq bU8ln688?* *Teohnleallyy,CLxmrrle6 womn may be a wsrehant 

### or treder 8t will, 60 far as the Immediate tmfl86OtiOtlof 

### thebulline88 Is concemea.* S66 23 Tax. Sur. p. 304. The authorltler in Terss are generaiiy agreed tlst ths 

### ltrynaturo OS 4 msrtmntl~e 

### businesri6 

### such that 

### a cjarrl4dwma QaPDOt be 0811b 

### a p6rtner. She, obviously, **cannot** do ths thing8 ersmtla~ **to** a oomerolal **BUOBB86.** Gn the **b6816** 

### ofthe 

### taot8atat64, ~6 40 not **think** ti **16 iegdiy**  **n p&&NW**  **at** 

### the **the** 

### the **bU6ln668 i8**  **fOlllcld,** aLthaugh at th6t time ehe h68 borrow& moa6y at the **bank to**  **b8 paid**  bask out of the prOfit frOP her **bU8in488.** Profit8 Of th4 bUine88 are community property. **b64 +eer** **’ s**  **“ hW**  of Unite1 Et&@&t&in

**‘ i6V36a.**  p. 967. **C~U1668 them**  **i8 8**  **CielU i.tlteIAtiOIl**  **tQ r4&tily**  borrowed money out of reparato property the new **MqUi8iti.Oa bo**  OOMP community. See also Ypeer, **6Uplq** Seotlon **430 bn4**  **~the aa6e8**  there cited. :Zceuoh lntantlon appear8 

### here.

kUC8tiOIl(b): *It not, **18** k36 partner with A in that **bU6ln488? ”** 
**We think**  **not. E**  **hr in**  **no way**  **recognized or**  **taken part**  in 8tartlng 

### thep4rtnersbip bwine88. 6 **be8 r4pre64Bt6d**  **t4** her 'are4ltora tbet 6h4 6214her **rapante** property 4re liable tot the partnership debt. She borrow66 th4 money upcnthe b86lr.ot her own oredit. Certainly **@4 ha6**  not bo~n4 **H by**  

### her **groai8e** 

### to 

### r4pay the bank the,aroneyborrowed. The **iaW i8**  **~42.2 Bettba**  **in thi8**  state that.the

### Wite. aan 

### Only

### bla4the**hu8b8nd ror**  **neO886ari48. The**  money borrowed **wa8** tor 8p4auiation in busln688. B m8y not be 6de 

### a Q6rlX6r in tbir bu6ine88 8g4in8t hi8 de6lr8 an4 6on84nt evea though be may hare 

### a community lntere8t In the pwtnerrhlp beoaust of the natum ot tha capital lnve8teU. & **6048 basso**  **an** intem8t ia the Qartnar6hip in tb6 8M8e that,~he rOtid 8hare in tha comsmlty profit6 but bs oan not be -de,& **partner** is tha 6triDt **legal** 64n6e against hi8 own will 4n4,OOZi8ent. 818 lntere8t **16 a**  **legal lwident**  

## ma **not** aontraotual. 

## ,UO6tiOn

(a)

## I *If I3I6 a partnnr with A, 16 P In the sgploym6nt 

## or the partne6hlp **0r** fI6ndA9" L~lnaese have answered the nart 

### preotilngque8tion 

### In the negative, thl8 **inquiry** need not bs answar44, Bowever, the

### Eiou. CrvilieL. 

### Capenter, ptige3

6tatu6 Of 0, a married woman **fe** likened tc thet of a creditor of the partnership by the suthorltlas of this M,ste. See 23 Tax. Jur. 

### p. 307 and the authorities there cited.

Luesticn (a): **“ If**  **b-i is**  in the employffient of the partnerehlp of E and k, wtat la the mealiureof oontrlbutlon with respect to x.6 empIoymont?w
An 6nswer to thle question 16 obviated by our reply thst E 16not employed In the partnergbip.

**;;u86tiOU (6):**  "If i;16 Iegelly 8 partner, are bar earnings 

### orprofita from the interior decorating buainesa community property subject to the oontrol of 81'
w'ethink, under the fact6 given, the earning6 or prorlt6, if you have used these word6 synonymou6ly, are oommunlty property **and** 

### are **Bubject** to the control of if. Thi6 **is true**  whether ii16 a partner or not in the **absence or**  **a** Schwethsln ~6. Schwethelrt,1s. 'k.(i: 

## irt **oi t&e**  **prOriL8** by H. 24) 911; A. E. Fslcbard4Yea. Co. vs. Jennings, E83 S. A. 296; i6t &tlonal Bank YO. ka‘iihorter, i79 5. h. 1147.

C;uestlonif): 'CM E iS&aiiy sir.5t0 ib6ii

## ot hi6 and the oommunity lntereretin 

### her **future or**  **pmfit8** 

## rronithe partnership? PO6tntiptiaicontracts 6re not tarored by the aourts ot thla state, but they will **be antoraed**  **when they**  **are** patently just and talr and do not withdraw the funds from exletlng aredltora, see Creenv. Fergueon, 69 Tex. fiep.SW; Cox v. killer, 54 %3x. hp. 16.
E and ;:cannot by agreement **bstween** theIL68Ile6change the oharacter Of their property 80 66 to OOnVert the oommunlty into 6ep6rst.e.or the eeparate into aommunltp. Se-e93 Tex. Jur. p. &eDonalU v. Stevenson, SC 5. a. 777. They 

### are free to nrake e8~ lit6 of their property, of either **aless,** to each other. 23 Tex. k tea. 18, also sec. 49.

iueetlon (g): "In the abaenoe ot 6uah e gift, whst i8 the ownership Of 8tOOk6 of gOO46 bought out ot the partnership eernia&8 **to** replenish the 6helYe8 

### end there comingled wlth other goods in **sueh ’** **a way**  as not to be l$entliiable?* The ownership or.euch goo,aeis in A cud In B and X **a8** husband an4 wire 66 commumlty property. ~ahwetheIm Y. SahwetbeIm,**L s.**  **LlC7.ti -**  (2d) 9li; 1sthatlonai Benk vs. 6-:~o?ihorter, 179 2. L.

<uestion (h):TYould the situation be obangad lf H madedally 

## girts to m

## orany lntereet which he eight have in the profits or earnings of the partnership buelness?" host aaeuredly yes. rihaprorlto **belonging** to the **com** aunltywou1d that

### beooma?Pe Ceparate property.

kuektlon (1): ***EOCB**5.ubsactlon19 (r)(4)

## 0rtiie **I ’** **axae &xmp~opment**  CGmpeneAtlon **Aat (Art.**  **fG?Zl-b-19,** (f) (4) BP&' to the faets stated to render both the partnership and 6.*employsrr~?* Artiole 5221-b-17 (i) (4) reads **AS** fo11owAr "bny employing unit Chloh together with one or more other employing unite, IS 

### ouned or controlled (by legally enrorceablc maan~ or otherwIre) directly Or lndlreotly by the AAIC~Interest, Or which owns or aontrols one 

### ormore other 

### employingunit8 

### (bylegally enforaeable meAn Or other&so), and which, Ii treated as

## Asir@8 unit with suoh other e loylng unit, ~0~14 be an employer uader paragraph 1) of 7 thi8 AubseetlGn;" be presume that your rsteranae la to the rA&I stated in CACt SittiatiODNo. 1. x0 have held that iiwad not a partner 

## At the 

### lweptlon of the partnershlp. Ii B

### m~baaa daily gift

## or the Community profits ha has Ccqulred 

### noeontrolling interest a8 required in the AbGVC quoted seotlon. The buslnesa Gf iieAIlXLOt tben be grouped **with** thepartnersblp to render both ooncerne 1lAb1e ror taxes. on the other hand, ii there WA8 no girt or the prdits **end** the rtook had been turned an& **new** stook pnrchased with the protlta, **the** stook has then beoome aommunlty. 9hethCr E is a partner or not he has by reason of the marriage eontraat and the status ot the property oontrol af this property **under the**  definition or en employer As quoted In ~aotion 17 

## (r) (4) OrArticle 5221-b And Saotlon 17 (4)

## 0r xrtlole 5221-b, whloh reads A6 **iO;llOWs:**

"*hmploylng unit* meens any lndlvlaua1 or **type** er Or@inl%AtlOU, lncludlng any partnarship, asaOOlatlGn, trust, aatata, joint-stock company, lnsuranoe oonapany, 

### or corporatlan, whathar domCstla or foreign, or the reoslver, truetae~ln 

### b+rupt6y, truetee or sucoeesor thereof, or tba lagAl **rapre~RAtAti~%** 0r a deceessd **par son,**  whioh hAs or subsequent;to 'January1, 193t%,had 

### in

### 3

**lion.** 

### tm111e 3.Carpenter,pace 5

its employ one or more IndIvSduels parrorming eervloee for itwlthln this Ltata. .A11 individuals 

### performlag sarvloae wlthln this **titeta** rGr any employing unit which **ZAiEtAinB** two or Sore **SCpAratC** establleluzentewithin thie Ltete ehell be deened to be employed by a single employing unit ror all purposes or this act. Eeeohlndlvltlualemployed to perform or to aeel*t 

### inperrorrdng the work or **cry** Agent or employee Of ea CmplOying Unit shall **be** deemed to be employed 

### by 8uch employing unit ror 

### allthepurpoaee of this rot, whether such lndlvlduel was hired or pid dlreatly by suoh employing unit or by such Agent or eaployae, provided the employing unit bad actuel 

### orconstructive knowledge of 

### theworkw Thestatute la ereaedlngly broad in its lsnguege,end if

### the interest of E end tiis community undrr our statutes, H hae the oontrol es spaoliled in Saotlon I??(i) (4) ot krtlole 5221-b.

Under thaee clreumstenaes, both H and the partnership arc liable for taxa on their partlouler payroll.

;;uestlon(j): Would the subeeetlon mentioned apply 

### ii :*s contribution to tbo capital of the partnership emounted to more then one-half of the total capital?"
In the light ci our other amwers we think it nnneoeeeary to enewer thls question.

Iuaetlon (k): "Ii Vibad been declared by the Court to be A sole trader, how would it 

### afieotthe answer to question (I)?" 

## Ii n has been lagell~ rreed Or the 4lrabllltler 

## orooverture, she ten be and la a pertner. The autborltles in **~axas** agree that attar the emencipetlon **by** oompllanoe with the atatutory meen the

### wife 1s lisbla on her contreot end the husband is not 

### liablef'or

thecontractof the wife in har trading buelnass. iiceStevens vs. ill16y, 7 ,S.'%.(2d) 883; Speer*s *Law 0r hlarltal Eights in Zaxes", seation 280.

Eowevar, 

## orT~XSS, theemanelpatlon 

### isnot, by the authorities

considered 

### a generel one but 

### is ltiited to the **purpose** rorwhloh ?t 1s eought. Sea 23 Tax. fur. Sec. 269. There is nothlnE lo the ect thet would indioAt6 en intention to alter the statue or

## pditf3 0r an 

### enterpriseas oommunlty 

### property. The Laglelature would have 

### nopoeer to do so for the cheraoter .0rthose **prGrit8** 'or.ae.quipltloneIs rixed by ~rtlola 16, Seatlon 15 Or our Texea Co4etlt@$on.**EOE.** Crville I-.C8rpenter,

In iirtiols4619 of PAga 6

Vernon’s Xevleed Civil Statutes, the Laeislature, by tte CodlrlOAtlOn Or 1925, AFAin placed the oontrol or the comun1t.y in tte husband. 

### in 25 Tax. Jur. Lea. 87, it is etAtad thet e6 an incident to the power of dieposition the husband leakhave the exclusive control **snd AWULAgeISent**  or the oomuunlty property; thet he my reduce the ooueimity property to poseeBelon~ employ eervects, afonts or make oonoeeelooe regarding the oporetlon of the Proparty. But this general uontrol doee not give him the power to partition the oommunity fXHU the eeparata prorep or hlmeelt or or thewire. Oohoa v. Edvarde, 189 S. A.

. The questloc of whether B hae oontrol of the partnerehlp 0r ii Azd A is than A question or rAat. fiasH made dally girt of .theProrIte t0 W Ii he hae an6 those girt6 ara continuing at this time f?has no oontrol or owncrehip Or the partnarehlp. It must be shown that profits belonging to tha oommlty have gone back into the buslnese end that they oen be traced to aetablleh spite them AS A Part Of the aApita1, B do&! then haV4 control In or tba CJlESllCipAtiG~ 0r *.
?a& eltPatlon No. 

### 2. *X.And i%are husband And wife. H operates a buelnaee which wAe puroheeed with eoenuunityrunde or liand E operatee an apart&ant houee on landwhlah ehe holde

~_ 8. by doe4 tram X granting her a life eetate in euasideratlon of ten dollers paid out or her separate e&ate, with remainder to B upon her-death. The number ot lndlvl8uale in her eaployrent, when added to the number of ?ndIvlduale in E's employment is nor6 than eight. **This 5itUAtiGn**  obtains **thrOUghOUt** the **yB(Lr.***
***DG~s** subsection 19 (r) (4) ,orthe Texas Unemploymant Compensation act (Art. S221-b-17 (i) (4) )apply to render both B end tiemployerr?w AgAin, the anewer to your question will depend upon the exletlng **iACtS** arising out 0r the operation **0r** the apartment house by G. xi, in the operation or eme, profits arc -de, they then bsoome aozmunity without regard to the life estate of ii in the ApArtment.houee. Ii, in tte operation or the apartment hou~a, xiusae those protlte or earnings in the operation of the Apartment house they are ooesnunityend will in tlma become the OApitAl inVestment.

Ii, on the other bend, there are not any profit8 Lola the operation of the Apartment houea there le no theory upon whlak E has any oommunlty interest ln the Apertaant houee~e~ndtherefore $4 he6 no oontrol or ownerehlp ot 

### It. If thet be true, the units nay nGt be groupad together rar the purpose Or assessment And oollaotion Gr unemployment eompensAtlon tAxas.

### _.. 3:

Eon. Orrllle L. Carpenter.

ifactsitUatl05 So. 

### pat?. 0

sr *a sna 6, husband end wire, own ana operate two oafs*, **1 ana**  **Y, ae**  oommunlty property 

### during the 

### par 105'l. cm Deoamber 31 1939, k lade6larUd a 801s trader

### bythe **court,** ena onJanuary 1, 1988, Iitranafars all of hi8 Interest in Cafe P to **K,** roaltlng 

### that ha theNbJ re**llnquisbta** 

### all olrlaa to 

### futnm aamlm$a orprofit,to ba 

### tbrivta :rom ttt 

### optretion

### or Cafe I. At tha aamatime **(bl makes**  the same sort of.tranafar to .8**O? all**  **of her**  **interest** fn Caft Y. **The nunher**  **of pwpla**  

### oisploycuY due lng 1938 in

### aachof the oaioa 

### lafive."
"toes Gubseotion 19 (f) (4) of tht Texas 

### Unemployment colopensatlonSrot

### (Art,SSil-b-17 (r) (4))apply to render **both** 

### fmploylng**units** 

### aubjeot l **r~ployara? ”**  The facts show that W la a aola trabeq they furthtr 

### avlnee a olaar intention of B end 'II to (60tholr 

### l

aparata uaya in

### bualneas. They l aoh **attempt to**  **make UL**  

### outrl&ht **Bitt** 

### of the aollPtmltrlntarrat in oafes X ana I. There la, hawarar a problbltlom on tha gift of Suturt 

### l sralada, aata, qu6atlon If,. The laar88 atetad In ZS xer. Jur. p. SO:

*It must ba admittad that tha fraa r¶.@t to maka gift8 and aonvo~aaoe8 Of ono*8 

### prapel%J ilthr to ths othtr apeuat or 

### teanother, aeecnpliahaa to. 

### aa oxttnt 

### theaauaend t&t 

### I am in t&e legat ordara or 

### aaaoeatwould aooompllah. Bat, riawad aa 

### ana6raamelitmerely, having for Its obfeat the 

### ahamp In 

### tbt legel order8 **or aeaaont,**  **tho,Oontraat la**  

### void; but viewed as a aisp0eition of apaolflo‘proptrt~, whether in exlatmoe or In

### l **xpeQtanof,** the truwoation 10 VaUd. The **latter** tranaaotlon 

### dot8not in lagal rontemplatlon ohawe t@ htlrt Itaeraly avoid8 the inherltanoe by a detleotlon OS t@t property."
I’M enfomjment of anj such 

### contraotarest8 iran on the prfnoiplt of equity rather thao'on their lntrlnnlo atrangth a8 a oontraot.

?arhsps, tha aourtirould rtoognlas thla qraamtnt botwean B aad K ao valid at;lta 

### lzmtptlon,but wa hare 8orlou8 doubt8 that the prorite of X would @a oonrldorad aa the ~aepatrakProparty of Y. Thus, 

### if the profit8 

### OS the 

### rsepaatlraoaiea went baak into tbabualneaeea their 

### ogaraotsr**Would** in time revert **to** that or **00mmnity.** 

### That **being true,**  **B** noula then win hate tht power to aontrol 

### the aafa I. ./

### 34

Ii that SftUltiQn obtains the cafes Y and Y would be **ampioyere ?utaer** kectiofi17 (f) (41 of Article W%?l-b, hevleea Civil **Ltatutes.**

**f ’** **6Ct 6itUotiOU**  **SO. 4.**  *ifend ilare husband and wife. i;' own@ one share of the total of fifty share8 of the etook of 

### a eorporatlon. h ownfitwenty-six and one-half &hart& and A 

### ownathe remaining twenty-two end one-helf. B optratee another business whloh 18 the oombuulty **property** of E and li. If subeeotlon 

### 19 (t) (4)of the rexa tinemploymentCo+ pcnsetlon Act (Art. 6EZl-b-17 (f) (4) )appllea, both the corporation and E **are** subject eeployem.* 'Iioel) the subeeoticn lestrentloned **apply?"**- The racts recited do not state whether S Is operating ifitkie lnstanoe as a **Bole** trader. However, Artlole 1306 of varnon*a 

### Rtvista civil dtetutea proviaea:

'Charters mey bt eubsorlbed **bp** married womtn who say be stookholdara, offleers iinaalreotoro thereoc; and their (Late,contracts and 

### deed8aa suoh **ataok** holders, otfioera and direatom @hell be aa bliiaing and 

### efteotlve

foreU the purpoaea of 6ald eorporatlon as if they were mnl6n.. The joinder 63313 oonsent of the husband ana privy 

### trUmlnatlonsseparate 

### end apart fromplra

### 8$alinot be rapulrad.* Artlole 4714 provides: 'All property of thewife, both real and personal, owued or olaiced by her before zmrrlage, and that aaquired,' afterward by gift, devise, **or dtaeent,**  as alao tht Inoreeae cl all iarrdsthus eoqulrtd, ehall be the separate property of the wife. 

### Thewit'sahell have the eolt managesent,control, and dispoeltlon of her **aeperate** property, both real **e&d**personal; provided however, the joinder of t&e husband :n t&t mmner now pWfid8d by law for convsyencee of the separate reel eatate of thewite shall be necessary to the Iroumbramm or oonveganae by the wire oi her laxids.and tht.joInt signature of ti.ebusbaud ar;B wife shall be neoemarp to a transfer of stocka and bmda belonging toher or of which she tay ba given control by thie law.* Thuz, tht *ifs has statutory right to oontrol her separate prdperty.- :?

Bon.WVille :i.Carpenter, pees 0

Does 

### L&erequiremoat of thle Article that the huebend join thewife Ia ths transfer oi stocks give him such control ae Ie Inten4s4 In L:eotlon17 (f) (4) of L.rtIole52El-b. The requlroEQnt or tito join In tha tranersr does not elve hIz tcs right 

### to **control.** be could not tots the stock of X without her 

### conn@nt, nor could he olafa,the Inarsare4 

### valueof the 

### StOQh 46oommunity. Ogl4Bby '1. POLtS, 

### 406:. ‘6.(2a)61s.
&? 40 not think E has auoh control of the corporation se to permit Ite grouping wltb the **bueinesa of**  iifor tbc purpose 

### of4ssdeSeLng

unaizployrent aosp3nsatlcn tnx48. 

### kh.lttedlyhe 40136 not own SQrriOient stook 

### tocontrol It 8t2a to SEJ that x's own4rship 

### giveshim aontrol Is repugnant to our statutes.
Yocursvery **truly**



# . m &I+ .

Morris 

### io444 ikIB318tent

APPROVEEAPR27,lQ40 &fLU&L&-


### ATTORNEYGFDRAL OFTEXAS