Community Property Division In Louisiana

During your marriage, you and your spouse probably acquired a variety of assets. Now that your divorce is finalized, these assets will have to be divided among the parties. Property division includes all of your assets, from your stock portfolio down to the kitchenware in your household.

IS LOUISIANA A COMMUNITY PROPERTY STATE?

Louisiana law employs a community-property system. Under this provision, each spouse holds half of the interests in all assets and debts acquired during the marriage (unless assets are deemed as separate property). Each party is entitled to receive half of the community property. The goal of the community-property system is to provide a fair and equitable division of property for all parties involved.

In Louisiana, any assets acquired during the marriage can be considered community property, unless the property is specifically classified as separate property. The way an asset is titled does not usually matter in determining property rights. Instead, many factors are taken into consideration, such as the source of funds, conditions, and timing of purchase. In most cases, if the asset is purchased using community funds, it is usually community property even if it’s held in ONE spouse’s name.

A) Separate property is an asset(s) that belongs exclusively to one of the spouses.

Separate Property Includes

1. Property acquired by a spouse prior to the marriage.
2. Property acquired by a spouse through individual inheritance or donation.
3. Property acquired during the marriage that is deemed separate property through a marital agreement or separate property agreement.
4. Property acquired with separate funds.
5. Damages caused by one spouse as a result of fraud/mishandling of individual property.

B) Community Property is made up of assets acquired during the marriage. Classification of community or separate property is determined at the time of purchase. Both spouses have one-half (50%)of interest in the community property. Neither party can receive economic benefits derived from community property until it is properly partitioned.

Community Property Includes

1. All property acquired during the marriage not classified as separate property at the time the property was acquired.
2. Property donated to the spouses jointly
3. Economic benefits derived from community property.
4. Damages or losses to community property.

THREE BASIC STEPS OF PROPERTY DIVISION IN LOUISIANA

1. Determine if the asset is community or separate
2. Determine the value of the asset of interest
3. Decide how to divide the property a) Buy out your spouse’s share b)Sell the asset and divide the proceeds

HOW TO CHANGE THE CLASSIFICATION OF PROPERTY

1. Matrimonial Agreements:Matrimonial agreements (i.e. prenuptial agreement) allow spouses to agree to modify or completely terminate certain community property rules.

1. Donation
2. The voluntary partition of community property during marriage converts the property partitioned from the community to the separate property of the recipient spouse.

As previously stated, all property acquired during the marriage is deemed as community-property. In a community property state, all debts and assets acquired during the marriage are considered equally shared by both parties–even if they were acquired by one spouse acting alone.

Property division can be one of the most difficult parts of a divorce. Some family matters are simply too difficult to handle without help. If you are facing any type of family legal issue, such as divorce, custody, support, or custody matters, the experienced family law attorneys at The Louisiana Family Law Firm are here to help.

For comprehensive legal support in family matters, turn to Louisiana Family Law Firm. Our dedicated team is here to assist you. Contact us for information or visit one of our convenient locations. Your family’s well-being is our priority.