Louisiana Property Division | LA Settling Disputes for Marital and Non-Marital Divorce Assets and Debts

In a divorce case, all assets and debt from the marriage must be sorted out by the courts. Among the many tasks a court has to undertake, a universal one is property division, specifically Louisiana property division.

No divorcing spouse should proceed without the guidance of a licensed Family Law attorney. Property division laws can be complex, vary from state to state and judges are more likely to rule favorably for a party who has retained qualified legal counsel.

Property Division Divorce Laws in Louisiana

The purpose of Louisiana property division laws is to make sure that Louisiana marital property is allocated equally to each spouse, generally in a 50-50 split. If a 50-50 division would not be equitable, the courts may choose to divide the Louisiana divorce property in a more equitable fashion under Louisiana case law.

Louisiana is a community property state. This means that with regard to Louisiana divorce assets, each spouse has a ½ vested interest in the property of the other spouse that should be considered in dividing Louisiana divorce assets or Louisiana divorce property. The only property that does not come into the court's distribution is that which is classified as separate property.

What is considered Marital and Non-Marital Property?

Louisiana marital property is all property acquired by either spouse during a marriage, regardless of its source or separation from other marital assets. Property acquired during the marriage is presumed to be community property.

Non-marital or separate property is property acquired by either spouse before the marriage but also includes a spouse's social security benefits according to Louisiana case law.
Ultimately, the classification of property for division falls under the discretion of the trial court judge.

Dividing Assets and Debt

After the court decides which property is available for distribution, the next step is property valuation. The last step is a 50-50 division of property under Louisiana Statute §9:2801(A)(4)(b), specifically a partition proceeding of the marriage's community property.

Judges decide how a marriage's assets should be divided based on factors under case law. Here is a list of the most common property items and the most common allocation scheme used.

Cash: Divided equally among the spouses.
- Example 1: A joint savings account has $5,000. The court would most likely award $2,500 to each spouse.
- Example 2: A joint savings account has $5,000. One spouse contributed $4,000 and the other contributed $1,000. The amount will be divided equally or based on the court's determination if one spouse would not be treated fairly under a 50-50 split.
Retirement Plans: The amount accrued during the marriage is divided equally.
- Example 1: A spouse got benefits in a retirement plan after working for 25 years and was married for 10 of those years. The ex-spouse would most likely be entitled to 50% of the income acquired during the 10 year marriage.
- Example 2: A spouse has an unvested retirement plan. No division takes place until the plan is payable to the spouse who has it.
Vehicles: Divided based on the values as of the date of trial. May be sold or given to a spouse outright.
- Example 1: A car is owned by a spouse. The car will most likely be sold with proceeds divided in a 50-50 split or the car may be given to a poorer spouse based on the court's discretion.
- Example 2: A boat has a shared title. The boat may be sold with the proceeds in a 50-50 split or given to a poorer spouse if a 50-50 split would be unfair.
Insurance: The portion paid for or acquired during the marriage is divided equally between the spouses.
- Example 1: One spouse has covered the other under employer health insurance. The other spouse is in poor health and could not afford alternate health care coverage. The court may order the first spouse to continue covering that spouse for a set time period and/or award a cash payment to the ailing spouse to get alternate coverage.
- Example 2: One spouse has a life insurance policy where premium payments were made with community property. The other spouse might get half of the amount paid for the premium.

Settling Disputes in a Divorce Case with Property and Asset Division

If a party does not comply with a time limit under Louisiana Statute §9:2801(C), the court or the other spouse may file a motion for enforcement and the other party can seek costs and attorney fees for filing this motion. You may also go back to court for a modification of the property division order if you are unhappy with a part of the property division order.

The trial court has great latitude in making decisions on property division and appellate courts will not change the order unless there was an abuse of discretion in the trial court.

Help From a Louisiana Property Divorce Lawyer

Retaining a Louisiana property divorce lawyer is key to getting the fairest and most equitable result in the property division phase of a divorce. The lawyer can provide professional guidance, keep you informed of likely outcomes and help you present the best arguments and presentation to the trial judge handling the divorce.

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