During a divorce, disputes can arise between you and your spouse when determining how to divide your property. Since Louisiana uses a community property system, it is important to learn how to distinguish community property and separate property. This is because judges use both of these terms to help them decide how to allocate property.
Key factors that Louisiana courts use to help them divide property
In Louisiana, property is either community property or separate property. The former typically refers to properties you obtain during marriage. On the other hand, the latter can refer to properties you own before marriage, as well as gifts or inheritances given to one spouse.
After the court decides which property and debts are community property, it divides them by following the terms and guidelines under Louisiana Revised Statutes 9:2801. The judge can assign values, divide debts and use cash payments to make the split fair. Courts often focus on practical issues to help them determine what is fair. Such issues include:
- When and how the asset or debt was acquired
- Evidence proving separate property, like documents showing an inheritance
- The value of major assets such as homes, businesses and retirement accounts
- The division of community debts, including mortgages, credit cards and taxes
Bear in mind that fair splits are not always as simple as dividing properties in half. Louisiana usually tries to divide community property equally, but judges can make adjustments by assigning debts, valuing assets or ordering payments to make it more fair for each spouse.
Classifying and dividing property in a divorce
During a divorce, property division begins by classifying assets and debts as community or separate. The court then divides community property by considering key factors such as proof, value and timing. To claim separate property, keep clear records showing how you acquired and maintained it.
In Louisiana, shared assets like homes, businesses or retirement accounts can potentially lead to valuation disputes and cash payments to balance the split. With this in mind, the key to reducing conflicts, delays and costs is proper documentation and realistic settlement goals.