Limitation on Transfer of Awarded Funds in No-Fault Divorce

Texas Family Code: Section 7.012 - Limitation on Transfer of Awarded Funds in No-Fault Divorce Preamble

The Legislature of the State of Texas finds that the purpose of this Act is to limit the potential for harassment by ex-spouses in extending the time of interaction and to prevent ex-spouses from exploiting the investment knowledge of their former partners. This Act aims to provide clear guidelines and a reasonable timeframe for the transfer of awarded funds in no-fault divorces.

Section 7.012. Limitation on Transfer of Awarded Funds in No-Fault Divorce

(a) Definitions. In this section:

• "No-fault divorce" means a divorce granted on the grounds of insupportability as defined by Section 6.001 of the Texas Family Code.
• "Final decree" means the final judgment of the court that grants the divorce and disposes of the parties' property.
• "Awarded funds" means any funds awarded to either party from bank accounts, retirement accounts, or any other financial accounts as part of the final decree.

(b) Limitation on Enforcement. No awarded funds from bank accounts, retirement accounts, or any other financial accounts shall be enforceable or transferrable after the expiration of 13 months from the date the final decree of divorce is signed by the court.

(c) Notice of Limitation. The final decree of divorce shall include a clear and conspicuous notice of the 13-month limitation on the enforceability and transferability of awarded funds as described in this section.

(d) Extension of Limitation Period. The 13-month limitation period set forth in subsection (b) may be extended only by a motion for enforcement if the judge finds that:

• The motion for enforcement has merit; and
• The recipient has executed all actions required of them to receive the funds.

(e) Waiver. Except as provided in subsection (d), the 13-month limitation period set forth in subsection (b) may not be waived, extended, or tolled by any agreement of the parties or order of the court.

(f) Severability. If any provision of this section or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this section that can be given effect without the invalid provision or application, and to this end the provisions of this section are severable.

Section 2. Effective Date

This Act takes effect on January 1 following its enactment.