Girard v. Girard

521 S.W.2d 714, 1975 Tex. App. LEXIS 2587
CourtCourt of Appeals of Texas
DecidedApril 3, 1975
Docket16465
StatusPublished
Cited by22 cases

This text of 521 S.W.2d 714 (Girard v. Girard) 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
Girard v. Girard, 521 S.W.2d 714, 1975 Tex. App. LEXIS 2587 (Tex. Ct. App. 1975).

Opinion

COLEMAN, Chief Justice.

This is an appeal from the judgment in a divorce case. The appellant, Dr. Louis J. Girard, makes no complaint of that portion of the decree awarding a divorce and the support and custody of the child of the marriage. His complaints are directed to that portion of the judgment relating to a house constructed upon a lot in River Oaks owned by Dr. Girard, the cost of which was paid with community funds.

Mrs. Girard was awarded reimbursement for borrowed community funds spent to build the house on the River Oaks lot, which loan has not been repaid in full; the right to live in the home so long as she and the child maintain it as their principal residence, regardless of the wife’s remarriage; and reimbursement for two-thirds of the principal and interest she pays on the home mortgage while living there subsequent to the divorce. The appellant al *716 leges that the court erred in making each of these awards. It is undisputed that the parties borrowed the sum of $135,000.00, and that both executed a note in that sum payable to the Benjamin Franklin Savings Association and secured by a lien on the River Oaks property. These funds, together with the additional sum of $12,000.00 of community funds, were used to pay the costs of construction of a house erected on the River Oaks lot. The evidence, therefore, shows that $147,000.00 of community funds were used to erect improvements on the separate property of the appellant. Broussard v. Tian, 156 Tex. 371, 295 S.W.2d 405 (1956). At the time of the trial community property funds of $5,225.00 had been used to make payments on the note. It appears, therefore, that the principal of the note had been reduced very little. However the fact that the note had not been paid does not affect the community character of the funds realized from the loan. Broussard v. Tian, supra. Mrs. Gir-ard was awarded as her separate property by the judgment of the court real estate, principally oil and gas interests, having a value in excess of $800,000.00. The fact that she is liable on the note is significant although the evidence shows that the value of the River Oaks property pledged as security for the note is substantially more than the amount of the loan. The trial court did not specifically require Dr. Gir-ard to assume payment of the balance due on the note as a part of the property settlement.

The River Oaks lot in question was improved with a residence at the time of the marriage of Dr. Girard and Mrs. Loraine Girard. This house was torn down in late 1968 so that the new house might be erected on the lot. Dr. Girard testified that .the idea of tearing down his residence and building a new house was formulated by him in the middle or early Sixties prior to the time that he had met Mrs. Girard. Prior to their marriage they discussed the matter in detail and finally decided to tear the house down and build a new one. Construction was begun on the house in January of 1969 and was completed in May of 1970.

The parties stipulated that appraisals made by Robin Elverson were true and correct. These appraisals were admitted into evidence. It was Mr. Elverson’s opinion that the lot was worth $115,000.00 to $125,000.00 in early 1970 and that the lot as improved on the same dates was worth $340,000.00 to $380,000.00. He further stated that as of February 6, 1974 the lot is worth $150,000.00 to $160,000.00 and that the fair market value of the house and lot is $380,000.00 to $420,000.00.

The trial court filed a conclusion of law no. 1 reading: “The court’s calculation of the enhancement in value of the husband’s separate property by community expenditures was based on the stipulated appraisals by Robin A. Elverson as to the value of the lot without the improvements and the value of the property with the improvements. The court took the lowest figures given by Elverson for both values: $340,000.00 value with improvements, $115,000.00 without the improvements. This showed a gross enhancement of $225,000.00. From this gross enhancement figure the court deducted the costs of construction of $147,000.00. The result was a net enhancement in value of $78,000.00. Had the court taken the higher values given by Elverson, the net enhancement would have been $83,000.00.”

The court also filed finding of fact no. 11 reading:

“During the marriage of the parties their community estate expended community funds and bound community credit for improvements on the above described homestead, said improvements enhancing the value of said homestead by the sum of $78,000.00.”

This finding of fact has not been directly challenged by the appellant, although he insists in argument that it is not *717 supported by the evidence for the reason that there is no evidence of the value of the lot with the improvements thereon prior to the time the new residence was erected. The rules of law applicable to a situation where community funds are spent to erect improvements on the separate property of one spouse are stated in Burton v. Bell, 380 S.W.2d 561 (Tex.1964). There the court said:

“The charge or equity which one estate has against the opposite estate for reimbursement of all funds spent in enhancing the value of such opposite estate is only a claim for money and return of funds and not a right, title or interest in the land.”

The pertinent rules were clearly stated and applied in Ogle v. Jones, 143 S.W.2d 644 (Tex.Civ.App.—Waco 1940, writ ref’d), opinion by Alexander, Justice, in these words:

“It is fundamental under our decisions, where the funds of a wife, either separate or her interest in the community, have been used to permanently improve the husband’s separate real property, that upon partition of the community estate the wife is entitled to reimbursement therefor. Dakan v. Dakan, 125 Tex. 305, 83 S.W.2d 620, par. 16, and authorities there cited. Such right is based upon equitable principles and the amount of the recovery is limited to the amount of the enhancements of the property by virtue of the improvements placed thereon. .. .
“Appellees suggest that the widow’s right of recovery in such case cannot be determined until the expiration of her homestead right in the property, because the estate of the deceased husband should be held liable only to the extent of the enhancement in value as of the time it receives possession of the property. The general rule, however, is that the extent of the enhancement in value and the consequent measure of the widow’s recovery is determined as of the time of the partition, (citations omitted). . .”

In Gleich v. Bongio, 128 Tex. 606, 99 S.W.2d 881 (1937), the court said:

“. . . in view of another trial, we make this observation: One-half of this borrowed money became the community property of Felix Bongio and his then wife, now plaintiff in error.

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521 S.W.2d 714, 1975 Tex. App. LEXIS 2587, Counsel Stack Legal Research, https://law.counselstack.com/opinion/girard-v-girard-texapp-1975.