Garza v. Garza

217 S.W.3d 538, 2006 WL 2871256
CourtCourt of Appeals of Texas
DecidedDecember 4, 2006
Docket04-03-00888-CV
StatusPublished
Cited by142 cases

This text of 217 S.W.3d 538 (Garza v. Garza) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Garza v. Garza, 217 S.W.3d 538, 2006 WL 2871256 (Tex. Ct. App. 2006).

Opinion

OPINION

Opinion by

KAREN ANGELINI, Justice.

Stephanie Garza appeals the final decree of divorce and brings the following issues on appeal: (1) whether the trial court awarded a disproportionate division of the property to Xavier Garza by improperly characterizing community assets as Xavier Garza’s separate property; (2) whether the *545 trial court disregarded the commingling of community and separate property; (3) whether the trial court should have applied the doctrines of judicial admission and judicial estoppel with respect to Xavier Garza’s testimony; (4) whether the trial court should have “disregarded the corporate fiction of Hacienda Tile, Inc.”; (5) whether the trial court applied the incorrect burden of proof regarding community and separate property and ignored the presumption that all property acquired during the marriage is community; (6) whether the trial court should have denied Stephanie Garza’s claims based on fraud, breach of fiduciary duty, and reimbursement; (7) whether the trial court ordered periods of possession and the rights and duties of the parties based on Xavier Garza’s request instead of the best interest of the children; (8) whether the trial court erred in admitting Stephanie Garza’s medical records in evidence; (9) whether the trial court erred in allowing Xavier Garza to play an audiotape recording to the jury while excluding Stephanie Garza’s audiotape; (10) whether the trial court erred in failing to ensure that a complete reporter’s record was made; and (11) whether the trial court erred in admitting in evidence Xavier’s testimony about documents not produced in discovery. We affirm in part and reverse and remand in part.

Background

Xavier and Stephanie Garza were married on March 9,1996. Their first son was born in 1997, and their second son was born in 1999. Both children have various medical conditions requiring special attention. Before the marriage, Stephanie Garza was employed as a teacher, but soon after the wedding and the birth of her and Xavier’s first son, she stayed at home to take care of the children.

Throughout their marriage, Xavier Garza was the primary financial provider for the family. A year before the wedding, in 1995, he created a corporation called Hacienda Tile, Inc. He created Hacienda Tile, Inc., a subcontracting company, for the purpose of installing ceramic and stone tiles. Xavier Garza and his father were the only members of the board of directors, and Xavier was the sole shareholder. In 1998, after the wedding, Xavier Garza expanded his business and began to purchase land and construct custom homes under the name “Hacienda Homes.”

On January 25, 2002, Xavier Garza filed for divorce. During their separation, both Xavier and Stephanie spent an equal amount of time with the children. However, on August 20, 2003, in the final divorce decree, although Xavier and Stephanie were appointed joint managing conservators, Xavier Garza was awarded the exclusive right to determine the children’s primary residence, the exclusive right to consent to their medical treatment, and the exclusive right to make decisions about their education. Xavier Garza was given a superior right to possess the children. Stephanie Garza was awarded possession of the children pursuant to a possession order that deviated from the standard possession order, and she was ordered to provide health insurance for the children and to pay $232.00 per month in child support.

With regard to the division of property, the trial court found that the parties had $147,742.00 in equity in their community homestead. The trial court awarded the homestead to Xavier Garza and ordered him to pay Stephanie the principle sum of $73,871.00 plus annual interest of 6% in 60 monthly payments of $1,428.13. The court determined that Hacienda Tile, Inc. a/k/a Hacienda Homes and all assets, property, and accounts related to or used in connec *546 tion with this business were Xavier Garza’s separate property. The court also determined that several shares of stock, jewelry, and various household items were Stephanie’s separate property.

Reimbursement Claims

According to Stephanie Garza, the trial court abused its discretion in denying her reimbursement claims regarding the following: (1) Xavier Garza’s house in Austin; (2) Xavier’s 1972 Oldsmobile Cutlass; and (3) legal fees paid by Xavier relating to his daughter from his previous marriage.

“The rule of reimbursement is purely an equitable one.” Vallone v. Vallone, 644 S.W.2d 455, 458 (Tex.1982). A right of reimbursement arises when the funds or assets of one estate are used to benefit and enhance another estate without itself receiving some benefit. Id. at 459. A right of reimbursement also arises when community time, talent, and labor are used “to benefit and enhance a spouse’s separate estate, beyond whatever care, attention, and expenditure are necessary for the proper maintenance and preservation of the separate estate, without the community receiving adequate compensation.” Id.

A party claiming the right of reimbursement must plead' and prove that the expenditures and improvements were made and that they are reimbursable. Id.; Hailey v. Hailey, 176 S.W.3d 374, 384 (Tex.App.-Houston [1st Dist.] 2004, no pet.). “Whether the situation involves the payment of a purchase money debt or a capital improvement, the enhancement value is the measure of reimbursement.” Zeptner v. Zeptner, 111 S.W.3d 727, 735 (Tex.App.-Fort Worth 2003, no pet.) (citing Penick v. Penick, 783 S.W.2d 194, 197 (Tex.1988)). The enhanced value of separate property is the difference between the fair market value before and after any improvements made by the community during the marriage. Rogers v. Rogers, 754 S.W.2d 236, 239 (Tex.App.-Houston [1st Dist.] 1988, no writ); see also Anderson v. Gilliland, 684 S.W.2d 673, 675 (Tex.1985).

Reimbursement is not available as a matter of law, but lies within the discretion of the court. Vallone, 644 S.W.2d at 459; Zeptner, 111 S.W.3d at 735. In evaluating the merits of a claim for reimbursement, the trial court should consider “all the facts and circumstances and determine what is fair, just, and equitable.” Penick v. Penick, 783 S.W.2d 194, 197 (Tex.1988); see also Zeptner, 111 S.W.3d at 735. The trial court should not simply return to the spouse seeking reimbursement the actual amount advanced to the other spouse’s separate estate without regard to the benefits received in turn by the community estate. Penick, 783 S.W.2d at 197-98; Zeptner, 111 S.W.3d at 735. An “equitable claim for reimbursement is not merely a balancing of the ledgers between the marital estates.” Penick, 783 S.W.2d at 198.

A. The Austin House

Free access — add to your briefcase to read the full text and ask questions with AI

Related

In the Estate of Mitchell Boyd Wilson v. .
Court of Appeals of Texas, 2025
George Jeff Zachery, III v. Angela L. Zachery
Court of Appeals of Texas, 2025
In Re Fort Bend County v. the State of Texas
Court of Appeals of Texas, 2025
Joshua Nsuh v. Irine Ngumashi
Court of Appeals of Texas, 2024
Nelson Hunter DeSpain v. Bonnie Rea DeSpain
Court of Appeals of Texas, 2024
Tommy Dale Day v. Melissa Kay Day
Court of Appeals of Texas, 2024
Michael Lawrence Shalit v. Robin Lynn Shalit
Court of Appeals of Texas, 2024
Roy Gentry Clarke v. Rexann Passmore Clarke
Court of Appeals of Texas, 2024
Kimi-Lyn Murray v. Phillip Murray
Court of Appeals of Texas, 2023
Stephen King v. Acasha King
Court of Appeals of Texas, 2023
Bobby Joe Hall v. Kristin Kistner Hall
Court of Appeals of Texas, 2023
in the Interest of S.J. and K.J.
Court of Appeals of Texas, 2023

Cite This Page — Counsel Stack

Bluebook (online)
217 S.W.3d 538, 2006 WL 2871256, Counsel Stack Legal Research, https://law.counselstack.com/opinion/garza-v-garza-texapp-2006.