## Facts

- Patricia Ann Hilton (wife) and Eric Michael Hilton (husband) divorced in Harris County, Texas.
- Eric inherited 12,403 shares of Hilton Hotel Corporation stock; the trial court found the shares were Eric’s separate property.
- Eric sold the inherited 12,403 shares on July 15, 1981, and the trial court found he used the proceeds to retire a community indebtedness.
- The trial court found Eric’s separate estate and its borrowing power contributed significantly to the creation of the community estate.
- In dividing the marital estate, the trial court awarded Eric 12,403 shares of Hilton Hotel Corporation stock from the community estate as equitable reimbursement to his separate estate.
- Patricia accepted certain stock awarded to her under the decree but appealed the reimbursement award to Eric.

## Issues

1. Whether Patricia’s acceptance of benefits under the divorce judgment barred her appeal under the acceptance-of-benefits doctrine.
2. Whether Eric’s separate estate was entitled to equitable reimbursement for separate property used to retire a community debt.
3. Whether Eric was required to plead and prove (a) that his separate-estate expenditures exceeded benefits received by his separate estate and (b) tracing sufficient to link separate-property proceeds to the community indebtedness.
4. Whether Eric’s payment of community obligations with separate property should be treated as a gift to the community, defeating reimbursement.
5. Whether the trial court had authority to satisfy reimbursement by awarding specific community property (12,403 shares) to Eric.

## Decision

- The court denied the motion to dismiss; Patricia’s acceptance of other benefits did not bar the appeal because the requested relief would not affect those benefits.
- The court affirmed the divorce decree, including the award of 12,403 shares to Eric as equitable reimbursement.
- The court held equitable reimbursement was proper where separate property was used to retire community indebtedness.
- The court rejected the contention that Eric had to plead or prove that separate-estate expenditures exceeded benefits received by his separate estate.
- The court held Patricia waived complaints about pleading deficiencies by failing to raise them before the judgment was signed.
- The court found no evidence supporting a finding that Eric intended a gift to the community.
- The court upheld the trial court’s authority, within a just-and-right division, to award community property as reimbursement; the award was supported as equitable and was less than the value of the separate funds used.

## Legal Principles

- Acceptance-of-benefits does not bar an appeal when reversal on the complained-of issue cannot possibly affect the benefits already received by the appellant.
- A spouse’s separate estate may receive equitable reimbursement when separate property is used to satisfy community debts.
- Absent evidence of donative intent, using separate property for community purposes is not treated as a gift to the community that defeats reimbursement.
- Complaints about defects in pleadings may be waived if not timely raised before judgment.
- In dividing marital property, a trial court may account for reimbursement equities and may award specific community assets to effect a just and right division.

## Conclusion

The appellate court allowed the wife’s appeal to proceed despite her acceptance of other decree benefits, and it affirmed the trial court’s discretionary property division awarding the husband 12,403 community shares as equitable reimbursement for separate-property proceeds used to retire a community debt.


Hilton v. Hilton, 678 S.W.2d 645 (Tex. App.—Houston [14th Dist.] 1984, no writ)