In Louisiana, community property is the term for shared marital property. Community property includes most of the assets and debts that spouses acquire during their marriage.
Under Louisiana’s community property system both spouses equally share the ownership of marital property, regardless of whose name is on the title. For couples who are considering a divorce, it is important to understand how this system might affect the division of marital assets.
What is considered marital property?
Any property that either spouse earns or purchases during the marriage generally becomes marital property. This includes real estate, vehicles, financial accounts and income from employment. Debts acquired during the marriage, such as mortgages or credit card debt, are also part of the community property.
Certain assets may remain separate from the community property. These assets include inheritance, individual gifts or any assets acquired before the marriage. If the couple wants to keep certain property separate, they can do so through a prenuptial or postnuptial agreement, as long as both parties agree.
How is marital property divided?
When a couple divorces in Louisiana, the community property is typically divided equally between the two spouses. However, the division does not always mean each item gets split in half. Instead, the court may allocate different assets to each spouse to achieve an overall equal value. For example, one spouse may keep the house while the other receives investments or cash.
Factors such as the length of the marriage and the financial situation of each spouse can also influence property division. If there is an enforceable agreement between spouses, courts will follow the terms of this agreement if its terms remain valid. The goal is to divide the community property fairly and equally, but spouses may negotiate their own agreements about how to split their assets.
The result of asset division during a divorce can significantly impact an individual’s financial future. That is why it is so important to understand how the community property system works. Anyone undergoing a divorce deserves to know how to advocate for their own interests and well-being.