Property division is often one of the most complicated aspects of divorce, even in the most amicable divorces. Whether you are preparing for divorce or already in the midst of one, it is important to have a thorough understanding of Louisiana’s property division laws.
Louisiana is a community property state. Community property is generally property acquired during the marriage. Separate property is property owned by one spouse before the marriage or gifts or inheritances given to one spouse that do not mix with any community property.
The first step in property division is labeling each piece of property community or separate property. Once that is complete, community property is divided equitably, which means fairly. An equitable split does not always mean equal, although a court often presumes that an equal split is fair.
Physical and non-physical assets
Property involves physical and non-physical assets. An example of physical property is a home or vehicle. Non-physical assets include items such as bank accounts, retirement accounts and cryptocurrency.
Physical assets are typically easier to divide. One spouse may choose to receive a physical asset, such as a home, and buy the other spouse out or may choose to sell the home and split the proceeds.
When it comes to non-physical assets, the same approach can be taken. Spouses can choose to each keep their own bank accounts if they are relatively equal in value or split a jointly owned bank account.
Debt division
Debt division also plays into the overall community property division. Community and separate debts must be identified and community debts must be divided.
Courts can consider an unequal division of community assets if an equal split would produce an unfair result. Although each case is different, common situations that could justify an unequal split include one spouse receiving an inheritance or a significant separate asset that does not get split.
Additionally, marital misconduct can sometimes justify an unequal split, especially if misconduct concerns finances. For example, if you present evidence that your spouse gambled marital funds away, you may receive a higher portion of community assets.
Learn which method is best for you
There are various ways to handle property division in divorce. Today, many couples choose an alternative dispute resolution method such as mediation to work on an agreement.
If you do not believe an agreement is possible, you might choose to litigate your divorce in court. This involves providing testimony and giving evidence to a judge who issues an order dictating the division of assets and debts.
A judge can also issue orders regarding other divorce issues such as alimony, as well as custody and child support if you and your spouse share minor children.
Knowing what route is best for you is not always easy or obvious. You might believe you can come to an agreement with your spouse on property division and later determine this is not possible.
Conversely, you may expect everything to be a battle and learn through negotiation that there is potential for settlement. Having someone to provide advice and guidance as you navigate the complexities of divorce helps you make the right choices about what comes next.