It is possible for one spouse to have a claim for reimbursement for separate property that was invested into the community estate. Typically, this takes the form of one spouse using their inheritance or pre-marriage assets to purchase a home during marriage. It also often occurs where one spouses uses their inheritance or pre-marriage assets to remodel or add improvements to a home.
Texas law provides a presumption that all property on hand at the time of divorce is community property. To prove otherwise, the spouse who is claiming a separate property interest must prove it by “clear and convincing evidence”. Documentations is going to be critical to being able to prove the separate property interest in situations where the separate property has been transferred into a community property item. This is referred to as “tracing”. The spouse will have to show exactly where the original property interest came from, and when and how it became invested into the community property item.