The process of going through a divorce can be overwhelming, emotionally exhausting, and, to top it off, can be incredibly complicated when it comes to dealing with the distribution of assets. In the state of Louisiana, community property laws apply when dividing property between divorcing couples. This means that all property acquired during the marriage is considered joint property and can be divided equally between both parties. Let’s dive into the details of asset distribution in Louisiana divorce cases.
What is Considered Community Property in Louisiana?
Community property is defined as all property that is owned by both spouses and that was acquired during the marriage, with few exceptions. The following categories are considered community property in Louisiana:
Real Property
Real property or immovable property refers to any land, buildings and any structures permanently attached to the land. It is crucial to know that in Louisiana, any increase in value of immovable property due to the actions of a spouse, such as the construction of additional structures or renovations, is considered community property and is to be equally divided.
Personal Property
Personal property or movable property refers to any assets that are not considered immovable and can be transported from one place to another. Examples of personal property include vehicles, furniture, clothing, jewelry, and any bank accounts, stocks, and bonds acquired during the marriage.
Retirement Benefits
Retirement benefits, such as pensions, 401(k)s, IRAs, and other retirement accounts are also considered community property in Louisiana.
Businesses
If a business was established, purchased, or grown during the marriage, it is considered community property. The value of the business during the marriage and any increase in value is to be divided equally.
How is Community Property Divided in Louisiana?
Louisiana is one of nine community property states in the United States. This means that the property acquired during the marriage is considered marital property and must be split equally between both spouses. However, this does not mean that all property will be split equally, as assets may have different values or could be subject to different terms.
Equitable Division
Equitable division is a term used by many states, but it is not applicable in Louisiana. In Louisiana, all property will be divided equally between both spouses, regardless of fault or disparity in income.
Marital Debt
Marital debt acquired during the marriage is also considered community property and is subject to equal distribution. Marital debt could include credit card balances, mortgages, and any other joint financial responsibilities.
Exceptions
In Louisiana, community property laws apply unless there is a prenuptial or postnuptial agreement in place. These agreements can outline how assets will be divided in the event of a divorce, allowing couples to avoid community property laws. Additionally, property owned before the marriage or inherited by a spouse during the marriage is considered separate property and is not subject to equal distribution.
Process
Asset distribution in Louisiana divorce cases can be a complex process. Once a couple decides to file for divorce, the division of assets will occur during the property settlement stage. Through this process, both parties will disclose all property and assets that they own. An extensive evaluation process will be conducted to determine the value of all assets that will be considered community property. Once the value of assets is determined, the court will divide them equally between the spouses.
Final Thoughts
Coming to terms with the end of your marriage can be a difficult experience. However, in the state of Louisiana, community property laws ensure that both spouses have a fair chance to receive an equal share of all assets acquired during the marriage. Whether you decide to settle out of court or go through a legal process, hiring a reliable attorney who has experience with asset distribution can provide valuable counsel and guidance throughout the process, ensuring that both parties receive their fair share.