Opinion ID: 2440422
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Heading: Eggemeyer Correctly States the Law

Text: Since the early days of the Republic of Texas, Texas has carefully drawn a line between the separate and community property of spouses in an attempt to preserve the distinctions between and the integrity of the two classes of property. Any judicial divestiture of separate property would essentially disregard the constitutionally mandated distinction. At times pertinent to this action, the Texas Constitution has provided: All property, both real and personal, of the wife, owned or claimed by her before marriage, and that acquired afterward by gift, devise or descent, shall be the separate property of the wife .... Tex. Const. art. XVI, § 15. In interpreting this provision, the court in Arnold v. Leonard, 114 Tex. 535, 273 S.W. 799 (1925), ruled that the constitution contained the exclusive definition of separate property and that the legislature could neither alter nor enlarge upon it. Section 3.63 of the Family Code authorizes a just and right division of the estate of the parties, but it does not provide authority for the transmutation of one spouse's separate property into the other spouse's separate property. Allowing a trial court to divest separate property from one spouse and award it to the other spouse as part of the latter's separate estate would impermissibly enlarge the exclusive constitutional definition of separate property. See Eggemeyer, supra, at 140. In addition to this constitutional reason for disallowing the divestiture of separate property on divorce, the statutory construction of section 3.63, Tex.Fam.Code Ann., does not imbue our courts with the authority to divest separate property. The Fourth Congress of the Republic of Texas approved in 1840 an Act adopting the Common Law of England ... and to regulate the Marrital [sic] Rights of Parties. 1840 Laws of the Republic of Texas, at 3-6, 2 H. Gammel, Laws of Texas 177-180 (1898). In defining separate and community property, [1] the congress decreed that land or slaves acquired before marriage or afterward by gift, devise or descent constituted separate property. All other marital acquisitions feel into the common or community estate of the spouses. One year later, the Fifth Congress of the Republic of Texas approved an act Concerning Divorce and Alimony. The statute authorized a divorce court to order a division of the estate of the parties ... as shall seem just and right, and added, that nothing herein contained shall be construed to compel either party to divest him or herself of title to real estate or to slaves. 1841 Laws of the Republic of Texas, An Act Concerning Divorce and Alimony § 4, at 20, 2 H. Gammel, Laws of Texas 484 (1898) (emphasis added); see McKnight, Commentary on Sec. 3.63, 5 Tex.Tech. L.Rev. 337-338 (1974). The divorce statute made clear it was the estate of the parties,the common property that the court had the power to divide. In contrast, the congress directed that real estate and slavesseparate property as defined one year earlier by the Fourth Congress should remain inviolate on divorce. The Fifth Congress, thus, forbade the divestiture of a spouse's separate property, as then defined, by the courts on divorce. Consequently, division of property by a divorce court was limited to the community estate. The phrase estate of the parties has been carried forward in Texas divorce laws and now appears in Tex.Fam.Code Ann. § 3.63(a). This court in Eggemeyer, supra, at 139, affirmed the construction that the phrase referred only to community property. [2] Four years after Eggemeyer, the 67th Texas Legislature amended section 3.63, but left undisturbed this court's decision that estate of the parties refers only to community property. In addition, the scheme enacted by the legislature in section 3.63(b) of the Family Code builds upon the law that property acquired before marriage or afterward by gift, devise or descent cannot be divided by Texas courts. [3] To now hold that the estate of the parties encompasses separate as well as community property would thwart the intent of this most recent pronouncement by the legislature. Section 3.63(a), moreover, authorizes a division of the parties' estate, but provides no authority for a court to divest a divorcing spouse's separate property. Castleberry, Constitutional Limitations on the Division of Property Upon Divorce, 10 St. Mary's L.J. 37, 48-55 (1978). As early as in the 1841 divorce statute discussed above, the Texas Congress drew a distinction between allowing courts to order a division of the estate of the parties while at the same time forbidding them to compel either party to divest him or herself of the title to real estate or slaves. 1841 Laws of the Republic of Texas, An Act Concerning Divorce and Alimony § 4, at 20, 2 H. Gammel, Laws of Texas 484 (1898) (emphasis added). The 1981 amendment to Tex.Fam. Code Ann. § 3.63 continues the use of the term division when addressing the courts' power to order a disposition of marital property. In Hailey v. Hailey, 160 Tex. 372, 331 S.W.2d 299 (1960), this court recognized and explained the difference between a division of property and a divestiture of property. A division of the community is similar to a partition of property and is not a divesting of title of either owner.... Id. at 377, 331 S.W.2d at 303. The division, we said, does not effect a conveyance or transfer of title; the transaction only dissolves the tenancy in common. One year later in McElreath v. McElreath, 162 Tex. 190, 345 S.W.2d 722 (1961), we repeated our holding in Hailey: Under our laws, permanent alimony is not recognized, nor is a Texas court authorized to divest either spouse of his or her title to separate property, Hailey v. Hailey , Tex.Sup., 331 S.W.2d 299, but the wife, in the main, must look to the community property for her share of the material gains incident to an ill-starred marriage. Id. at 193, 345 S.W.2d at 724 (emphasis added). Thus, the terminology utilized first by the Texas Congress and carried forward to the present day by the Texas Legislature reinforces our decision that separate property is not subject to divestiture by courts on divorce. It is also suggested that separate property may be divested and granted to the non-owning spouse as an exercise of the police power. The Texas Legislature, however, has not seen fit to exercise this power in favor of divestiture of spouses' separate property on divorce. Presently, section 3.63(a) of the Family Code is silent on the courts' power to take one spouse's property and give it to the other on divorce. In comparison, the California statute concerning the disposition of property on divorce, Cal.Civ.Code § 4800, like Tex.Fam.Code Ann. § 3.63(a), neither expressly prohibits nor provides for divestiture of separate property on divorce. Yet the California courts have consistently refused to interpret the statute as authorizing its courts to divest spouses of their separate property. One California court has explained: The jurisdiction of the court with respect to property in a divorce action is found in section 137 et seq. of the Civil Code. As a general rule and subject to certain exceptions not material here, the power of the court is limited to a disposition of the community property and a court is without power to pass upon a dispute as to separate property or the disposition of the same. Roy v. Roy, 29 Cal.App.2d 596, 85 P.2d 223 (Dist.Ct.App.1938); accord, Machado v. Machado, 58 Cal.2d 501, 375 P.2d 55, 58 (1962); Fox v. Fox, 18 Cal.2d 645, 117 P.2d 325, 326 (1941); Simpson v. Simpson, 80 Cal. 237, 22 P. 167, 168 (1889). As recently as 1981 when the Texas Legislature considered and substantially amended Tex.Fam.Code Ann. § 3.63, [4] it failed to assert any intention to use the police power it might have as a means of divestiture. We do not see, therefore, that the state has authorized the use of any power it might have to take separate property on divorce. Texas property law contains a rich tradition of respect for the constitutional, Tex. Const. art. XVI, § 15, and statutory, Tex. Fam.Code Ann. § 5.01, boundaries between community and separate property. Our state's courts have steadfastly guarded these estates from, and have been alert to rectify fraudulent encroachment by one estate upon the other. Land v. Marshall, 426 S.W.2d 841 (Tex.1968); Krueger v. Williams, 163 Tex. 545, 359 S.W.2d 48 (1962); Volunteer State Life Ins. Co. v. Hardin, 145 Tex. 245, 197 S.W.2d 105 (1946). The integrity of each estate has been protected by developed principles of law and accounting by which funds or assets may be traced. Tarver v. Tarver, 394 S.W.2d 780 (Tex. 1965); Rose v. Houston, 11 Tex. 324 (1854); Love v. Robertson, 7 Tex. 6 (1851). The law of reimbursement between separate and community estates of spouses at divorce has been recognized since an early date. Rice v. Rice, 21 Tex. 58 (1858); see also Lindsay v. Clayman, 151 Tex. 593, 254 S.W.2d 777 (1952); Dakan v. Dakan, 125 Tex. 305, 83 S.W.2d 620 (1935); Schmidt v. Huppman, 73 Tex. 112, 11 S.W. 175 (1889). A decision that would throw all separate and community property of the divorcing spouses into a hotchpotch so a trial judge could divide the mass without regard to when or how it was acquired would raze much of our developed community property law. As we look beyond the boundaries of Texas, we find our holding in Eggemeyer that separate property may not be divested puts Texas in conformity with the law in six of the seven other community property states. In Arizona, The court in pronouncing the decree of divorce had no authority to compel either party to divest himself or herself of the title to separate property. Wiltbank v. Wiltbank, 18 Ariz. 435, 162 P. 60, 61 (1917); see also Collier v. Collier, 73 Ariz. 405, 242 P.2d 537 (1952); Armstrong v. Armstrong, 71 Ariz. 275, 226 P.2d 168 (1951); Schwartz v. Schwartz, 52 Ariz. 105, 79 P.2d 501 (1938); Brown v. Brown, 38 Ariz. 459, 300 P. 1007 (1931); Warren v. Warren, 2 Ariz.App. 206, 407 P.2d 395 (1966). In California, the court may not assign the separate property of one spouse to the other, nor require one to pay the other any amount in lieu of an assignment or divestiture. Fox v. Fox, 18 Cal.2d 645, 117 P.2d 325 (1941). [T]he power of the court to dispose of the property of the parties to a divorce action is limited to their community property. It is the general rule that the court has no jurisdiction to assign separate property of one spouse to the other .... Mitchell v. Marklund, 238 Cal.App. 398, 47 Cal.Rptr. 756 (Ct.App.1965); accord Reid v. Reid, 112 Cal. 274, 44 P. 564 (1896); Davis v. Davis, 222 Cal.App.2d 691, 35 Cal.Rptr. 281 (Ct.App.1963); Thomasset v. Thomasset, 122 Cal.App.2d 116, 264 P.2d 626 (Dist.Ct. App.1954); Barba v. Barba, 103 Cal.App.2d 395, 229 P.2d 465 (Dist.Ct.App.1951); Robinson v. Robinson, 65 Cal.App.2d 118, 150 P.2d 7 (Dist.Ct.App.1944). The California rule may be summed up: As a general rule and subject to certain exceptions not material here, the power of the court is limited to a disposition of the community property and a court is without power to pass on a dispute as to separate property or the disposition of the same. Roy v. Roy, 29 Cal. App.2d 596, 85 P.2d 223 (Dist.Ct.App.1938); see also Machado v. Machado, 58 Cal.2d 501, 375 P.2d 55 (1962); McKannay v. McKannay, 68 Cal.App. 701, 230 P. 214 (Dist.Ct. App.1924). In California, even the community property must be divided in equal parts rather than, as in Texas, fairly and equitably. Cal.Civ.Code §§ 4800, 4801. The Idaho Supreme Court, interpreting that state's divorce laws, stated, The court has the power to divide the community property between the parties, but has no power or authority to award the wife's separate property, or any of it, to the husband. Radermacher v. Radermacher, 61 Idaho 261, 100 P.2d 955 (1940); see also Simplot v. Simplot, 95 Idaho 239, 526 P.2d 844 (1974). Nevada courts cannot divest separate property and award it to a spouse in fulfillment of the statutory power to make an equitable disposition of the marital property. Stojanovich v. Stojanovich, 86 Nev. 789, 476 P.2d 950 (1970); Jacobs v. Jacobs, 83 Nev. 73, 422 P.2d 1005 (1967); Thorne v. Thorne, 74 Nev. 211, 326 P.2d 729 (1958). The New Mexico law regarding divestment of title parallels that of Nevada. Ridgway v. Ridgway, 94 N.M. 345, 610 P.2d 749 (1980). Louisiana also maintains a distinction on divorce between a couple's community and separate estates. See generally Curtis v. Curtis, 403 So.2d 56 (La.1981); Lane v. Lane, 375 So.2d 660 (La.Ct.App. 1978), writ denied, 381 So.2d 1222 (La.1980); La.Civ.Code Ann. arts. 149, 155, 159, 2341, 2365, 2367, 2369, 2369.1. The Nevada, New Mexico, and Louisiana legislatures have imposed upon spouses a continuing legal duty to provide support for a divorced spouse through alimony. While prohibiting divestment for property settlements, those states expressly permit a transfer in discharge of the legislatively enunciated duty to provide support. See La.Civ.Code Ann. art. 160; Nev.Rev.Stat. § 125.150(3); N.M.Stat.Ann. § 40-4-7.B(1). The State of Washington is the only community property jurisdiction that holds contrary to Eggemeyer and the rule in all other community property states. Even so, Washington permits divestment only in exceptional circumstances. Morris v. Morris, 69 Wash.2d 506, 419 P.2d 129 (1966); Browning v. Browning, 46 Wash.2d 538, 283 P.2d 125 (1955). The National Conference of Commissioners on Uniform State Laws in the Uniform Marriage and Divorce Act has accepted the principle that separate property in community property states should not be subjected to divestment by a trial court on divorce. The recommended draft for community property jurisdictions affirmatively states that the court shall assign each spouse's separate property to that spouse. [5] The comment explains that the commissioners from community property states adhered to the distinction between community and separate property, and the draft provides only for the division of community property. Unif.Marriage & Divorce Act § 307 Commissioners' Comment, 9A U.L.A. 144 (1973). In a broader context, Professor Marsh in his treatise, Marital Property In Conflict Of Laws 182 (1952), writes that in none of the United States at the present time does either spouse acquire a marital-property interest in the property of the other owned at the time of marriage, whether movable or immovable. Accord, K. Gray, Reallocation Of Property On Divorce 127, 132 (1977). Section 257 of the Restatement Of Conflict Of Laws (Second) and its comment affirms the principle that a spouse gains no marital property interest in the pre-marital acquisitions of the other spouse by virtue of the marriage. [6] The undercurrent of arguments to this court in support of the divestment of separate property is that Texas does not allow permanent alimony. [7] Section 3.59, Tex. Fam.Code Ann., authorizes support of a spouse only until a final decree. See Eichelberger v. Eichelberger, 582 S.W.2d 395, 402 (Tex.1979). The policy against permanent alimony is so strong that the Texas Legislature has stated that the duty of support will be honored under the laws of other states except that the rule shall not include alimony for a former wife. Tex. Fam.Code Ann. § 21.21; see McElreath v. McElreath, 162 Tex. 190, 228-229, 345 S.W.2d 722, 747 (1961). One reason that Texas denies permanent alimony is that more than a century and a half ago, the state, along with Louisiana, took the lead to give wives equality with their husbands in the ownership of property they acquired during coverture. The common law recognized the wife's existence only through the husband, who upon marriage became the owner of the wife's property. Castleberry, supra, at 55. In addition, spouses share the gains of their marriage equally under our community property legacy from Spain. Common law jurisdictions are yielding to this equal system of marital property ownership. See K. Gray, supra, at 63-67, 132-133. It is urged that we, by indirection, should resolve the problem of the state's lack of alimony laws by allowing our courts to divest a spouse of separate property and award it to the other spouse. In so doing, it is argued that we would be insuring the state that a worthy spouse [8] would receive the financial support necessary to keep him or her from being a charge of society. As noted earlier, New Mexico currently allows its courts to transfer spouses' separate property on divorce, but the statute permitting such expressly notes that the transfer is considered alimony. N.M.Stat.Ann. § 40-4-7.B(1). Divestiture of separate property for reason of financial support is nothing less than alimony. Our legislature has not authorized Texas courts to grant permanent alimony, and we do not perceive that it is our function to legislate in its stead. Whatever may be the reasons for the strong Texas legislative policy against permanent alimony, this court will respect it. To do otherwise requires this court to disregard the rules of statutory construction, the history of the law prohibiting divestment of separate property, the developed law of the other community property states; it would wipe out the legal distinctions between property, generate unnecessary constitutional problems about the classification and taking of property, create a new cycle of problems in construing amended article 3.63(b) of the Family Code, and would be contrary to the directions the law is taking in both common and community property law states as well as in the provisions of the Uniform Marriage and Divorce Act. The rules stated in this cause and in Eggemeyer harmonize these problems and keep the Texas community law consistent with the law of the other community property states. If there is a need for permanent alimony, it must come from the legislature where the policy arguments can be fully addressed by the whole public.