Relating to the recovery of fees, court costs, and expenses in family law proceedings.
ModeratePlan for compliance
Medium Cost
Effective:2025-06-20
Enforcing Agencies
Texas Civil Courts • Private Attorneys (granted authority to enforce orders in their own name)
01
Compliance Analysis
Key implementation requirements and action items for compliance with this legislation
Implementation Timeline
Effective Date: September 1, 2025
Compliance Deadline: August 30, 2025 (All payroll protocols and vendor indemnification reviews must be complete prior to the law taking effect).
Agency Rulemaking: None required. This statute is self-executing through the Texas Civil Courts. However, judicial interpretation will define the scope of "reasonable expenses" over the next 12-24 months.
Immediate Action Plan
1.Audit Payroll: Immediately verify all active child support and spousal maintenance withholding orders for accuracy.
2.Update Indemnity: Renegotiate payroll vendor contracts to explicitly cover "litigation expenses" resulting from processing errors.
3.Check Insurance: Contact your broker to verify if your current EPLI policy covers court-awarded "expenses" in retaliation suits.
4.Revise Bid Checklists: If bidding on state contracts, implement a mandatory secondary check of all partner/owner child support statuses.
Operational Changes Required
Contracts
Payroll Vendor Agreements: You must review indemnification clauses with third-party payroll processors. If a vendor fails to process a withholding order (Sections 8.206/158.206), your business is liable for the plaintiff's "expenses." Ensure your contract allows you to pass these specific litigation costs back to the vendor.
State Procurement Bids: Update internal bid review processes. Under Section 231.006, submitting a false certification regarding child support delinquency now triggers liability for the state's "expenses" and the full administrative cost of rebidding the contract.
Hiring/Training
HR Termination Protocols: Train HR staff on the heightened risk of terminating employees with active withholding orders. Wrongful termination suits under Family Code 158.209 now carry the penalty of paying the former employee's investigative and litigation "expenses." Documentation for termination must be robust to defeat retaliation claims.
Payroll Processing: Implement a "zero-error" policy for spousal maintenance and child support garnishments. The cost of a clerical error now includes the opposing counsel's administrative expenses to correct it.
Reporting & Record-Keeping
Litigation Accounting: If your company is a third party in a family law suit (e.g., responding to a subpoena), you are entitled to recover your own "expenses" (Section 106.002). Instruct legal counsel to separately code non-fee costs (data hosting, courier, travel) to ensure full reimbursement.
Fees & Costs
Insurance Review: Review General Liability (GL) and Employment Practices Liability Insurance (EPLI) policies. Confirm that the definition of "loss" includes "litigation expenses" awarded to a plaintiff, as this is now a distinct statutory category separate from "defense costs" or "damages."
Hospitality Liability: For hotels and inns, the statutory cap on damages for willful/malicious conduct ($25,000) remains, but the ancillary financial liability is now uncapped regarding "expenses."
Strategic Ambiguities & Considerations
Definition of "Expenses": The statute does not define what constitutes a "reasonable expense." Plaintiff attorneys will likely interpret this broadly to include private investigators, forensic accountants, and high-end travel costs. Until Texas appellate courts set a precedent, businesses should anticipate aggressive billing in settlement demands.
Direct Payment Enforcement: The law allows courts to order fees and expenses paid directly to the attorney, bypassing the client. This incentivizes plaintiff attorneys to pursue collection actions against businesses personally and aggressively, as they become the direct judgment creditors.
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The bill author has informed the committee that the Family Code contains several inconsistencies regarding the award of attorney's fees, court costs, and expenses in family law cases. These inconsistencies have resulted from numerous amendments over the years, with some sections providing for fees and costs, while others are silent or only mention certain expenses. H.B. 2524 seeks to harmonize when a court may award attorney's fees, court costs, and expenses in the family law context.
CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
H.B. 2524 amends the Family Code to specify that a court, as applicable, may award or order or require payment of reasonable and necessary attorney's fees, court costs, and expenses in a proceeding under provisions relating to the marriage relationship, a child in relation to the family, protective orders and family violence, and a suit affecting the parent-child relationship.
H.B. 2524 authorizes a court, in a proceeding relating to the termination, modification, or enforcement of a spousal maintenance order, to award reasonable and necessary attorney's fees, court costs, and expenses incurred by a party to the divorce or annulment. The bill authorizes the court to order the fees, costs, expenses, and any postjudgment interest, as applicable, in a proceeding under provisions relating to the marriage relationship, protective orders, and a suit affecting the parent-child relationship to be paid directly to the attorney, who may enforce the order in the attorney's own name by any means available for the enforcement of a judgment for debt.
H.B. 2524 applies to a suit that is filed on or after the bill's effective date. A suit filed before that date is governed by the law in effect on the date the suit was filed, and the former law is continued in effect for that purpose.
HB2524 expands financial liability in civil litigation by adding "expenses" to the list of recoverable funds alongside attorney's fees and court costs. This change significantly increases exposure for employers managing child support withholding and hospitality businesses facing liability suits. Courts are now authorized to award uncapped reimbursement for investigative costs, expert witnesses, and travel, transforming minor compliance errors into expensive judgments.
Q
Who authored HB2524?
HB2524 was authored by Texas Representative David Cook during the Regular Session.
Q
When was HB2524 signed into law?
HB2524 was signed into law by Governor Greg Abbott on June 20, 2025.
Q
Which agencies enforce HB2524?
HB2524 is enforced by Texas Civil Courts and Private Attorneys (granted authority to enforce orders in their own name).
Q
How urgent is compliance with HB2524?
The compliance urgency for HB2524 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
Q
What is the cost impact of HB2524?
The cost impact of HB2524 is estimated as "medium". This may vary based on industry and implementation requirements.
Q
What topics does HB2524 address?
HB2524 addresses topics including courts, courts--general, family, family--child support and family--general.
Legislative data provided by LegiScanLast updated: November 25, 2025
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