Court Opinion

ID: 9766905
Source: CourtListenerOpinion
Date Created: 2023-08-29 05:02:14.641901+00
Date Added: 2024-06-11T07:30:27.052178
License: Public Domain

SUPPLEMENTAL OPINION ON APPELLEE’S MOTION FOR REHEARING
In his motion for rehearing appellee complains this court erred in sustaining his former wife’s third point of error. By that point she challenged the trial court’s refusal to place an equitable lien on the husband’s separate property homestead securing the right of reimbursement awarded her by that court. We are persuaded that a right of reimbursement is not an interest in the land. However, we remain convinced that the trial court does have discretion to place an equitable lien on one spouse’s separate property to secure a right of reimbursement awarded the other spouse for construction of a family home on that property with community property resources.
In Burton v. Bell, 380 S.W.2d 561, 564 (Tex.1964), the Supreme Court described the nature of a right of reimbursement for community property funds expended to improve separate property as “a claim for money and return of funds and not a right, title or interest in the land.” Burton did not address the issue of whether or not an equitable lien could attach to secure the claim for reimbursement; however, the Supreme Court relied upon Burton in support of the following language in Jensen v. Jensen, 665 S.W.2d 107, 110 (Tex.1984), a case involving the increase in separate property corporate stock: “However, if the right to reimbursement is proved, a lien shall not attach to Mr. Jensen’s separate property shares. Rather, a money judgment may be awarded.”
That wording in Jensen has created some confusion as to whether or not an equitable lien may still be placed on separate real property to secure a right of reimbursement awarded for improvements to that property. See Rogers v. Rogers, 754 S.W.2d 236, 241 (Tex.App.—Houston [1st Dist.] 1988, no writ); Weekley, Reimbursement Between Separate and Community Estates — The Current Texas View, 39 Baylor L.Rev. 945, 976 (1987). However, the Supreme Court found no reversible error in a post-Jensen case upholding the imposition of an equitable lien on one spouse's separate real property to secure the award of reimbursement for community funds advanced to improve that property. See Cook v. Cook, 665 S.W.2d 161, 165 (Tex.App.—Fort Worth 1983, writ ref’d n.r.e.).
In Smith v. Smith, 715 S.W.2d 154, 160 (Tex.App.—Texarkana 1986, no writ), the appellate court distinguished Jensen from cases involving real property rather than the “key-man concept” peculiar to the stocks involved in Jensen. The Smith court affirmed the imposition of an equitable lien upon the separate real property of the husband as security for the right of reimbursement awarded the wife for improvements made on the husband’s separate real property with community property funds. The court made the following observation:
We do not believe the Supreme Court of Texas by their opinion in Jensen intended to change the longstanding rule of permitting divorce courts to attach a lien to secure an award of reimbursement for improvements.
Smith, 715 S.W.2d at 160.
We agree with this reasoning. Prior to Jensen this court upheld equitable liens placed on the separate property of one spouse as security for a right of reimbursement awarded the other. Buchan v. Buchan, 592 S.W.2d 367 (Tex.Civ.App.—Tyler 1979, writ dism’d); Day v. Day, 610 S.W.2d 195 (Tex.Civ.App.—Tyler 1980, writ ref’d n.r.e.). The Cook case discussed above cites Buchan. We agree with the Texarkana court’s holding in Smith that Jensen’s prohibition against equitable liens on separate personal property does not apply in cases involving improvements on sepa*681rate real property and adhere to our decisions in Buchan and Day.
We hold that the trial court has the discretion to establish a lien on separate real property as security for a right of reimbursement awarded one spouse for community property resources expended to improve that separate property. Appellee’s motion for rehearing is overruled.