Even the most amicable divorce can be an emotional and trying time in a person’s life. The question of how assets are divided during a divorce is at the forefront of many people’s minds. The experts at Louisiana Family Law Firm have years of experience in matters of family law, from mediation to custody disputes, and we can help you learn more about how property is divided in a divorce.
What’s the Difference Between Marital Property and Separate Property?
In any divorce, a couple’s property is split into “marital property” and “separate property.” Under Louisiana law, the marital property belongs to both ex-spouses, while separate property belongs entirely to the person who acquired it.
Marital property, also called “shared property,” includes real estate that you acquired together using shared funds and shared assets such as bank accounts, IRAs, pension plans, and 401Ks in most cases.
Separate property, also called “individual property,” belongs to one person alone and may include:
- Inherited funds and gifts left to one member of the divorcing couple
- Property owned before the marriage
- The property you decided in writing (via a prenuptial agreement or similar) is separate
What Items Are Considered Marital Assets, and How Are they Divided?
There are three major categories of marital assets: physical property, financial assets, and ongoing benefits. Louisiana divides these in different ways, but in each case, the state follows an “equitable division” rule to split these assets.
Physical Property
Physical property, like houses and cars, is often the simplest to separate regarding how assets are divided in divorce. In the process of a divorce, you may end up selling this property and splitting the proceeds or splitting it outright. For instance, one ex-spouse may get one car, and the other may get the other.
Financial Assets and Debts
Louisiana has separate guidance for how assets are divided in divorce when shared finances (such as jointly held bank accounts) come into play. This property includes debts you acquired as a couple, and splitting these up can be even more difficult. A family lawyer like the ones at Louisiana Family Law Firm can help you divide these debts even in an otherwise uncontested divorce.
Benefits and Entitlements
Benefits and entitlements, such as Social Security and disability pay, may have to be split in a divorce. If divorcing spouses are close to the Social Security Administration’s 10-year rule or other eligibility cutoffs, they may want to time their divorce carefully.
How Do Louisiana State Laws Affect the Division of Property and Debts in Divorce?
Louisiana is one of nine “community property” states. Under this system, assets earned outside of marriage (either before the marriage or through inheritance or other means) belong solely to the person who earned them. However, assets earned within the marriage are split 50/50 whenever possible, regardless of who earned them. Community property can be complex to navigate even in an uncontested divorce, so it’s important to get legal advice early on.
Louisiana Family Law Firm Is Here to Help You Navigate the Division of Assets in Divorce
Louisiana Family Law Firm has extensive experience in all types of family law in the state. Whether you need a mediator or a fierce legal advocate for complex disputes, we should be the first team you turn to. With the help of our expert attorneys, you can understand your rights, which gives you a leg up in the divorce process.
Knowing how assets are divided in divorce is the first step toward navigating that divorce. If you have more specific questions about how assets are divided in a divorce, don’t hesitate to give us a call or schedule your consultation with us online.
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