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Division Of Assets & Debts In Louisiana

Division Of Assets & Debts In Louisiana Lawyer, Shreveport CityThe following article will cover:

  • Factors that may affect the division of property, assets, and liabilities after you file for divorce.
  • The right to partition former community property, the process of judicial partition, and the settlement of claims arising from matrimonial regimes and co-ownership of former community property.
  • The rules and procedures involved in the partition of community property.

Factors That May Affect the Division of Property, Assets, And Liabilities After A Divorce Has Been Filed

A divorce judgment terminates a community property regime, effective from the date of the divorce petition’s filing. This termination is without prejudice to the rights of third parties that were validly acquired between the petition’s filing and the judgment’s recording.

Right To Partition; No Exclusion By Agreement; Judicial Partition

A spouse has the right to demand the partition of former community property at any time, and any agreement to the contrary is null and void.

If the spouses cannot agree on the partition, either spouse may demand a judicial partition, which will be conducted following Louisiana statutes.

Partition Of Community Property And Settlement Of Claims Arising From Matrimonial Regimes And Co-ownership Of Former Community Property

If the spouses cannot agree on a community property partition or on the settlement of claims arising from the matrimonial regime or co-ownership of former community property, either spouse may initiate a proceeding. This proceeding may be an incident of the action that would result in the matrimonial regime’s termination, or it may occur upon or after the termination of the matrimonial regime. The proceeding is conducted according to the following rules:

  • Within 45 days of service of a motion by either party, each party must file a sworn, detailed descriptive list of all community property, including the fair market value and location of each asset and all community liabilities. For good cause shown, the court may extend the time for filing this list. If a party fails to file this list in a timely manner, the other party can file a rule to show cause why their own detailed descriptive list should not be accepted as a judicial determination of the community assets and liabilities. At the rule to show cause hearing, the court can either grant the request or, for good cause shown, extend the time for filing a sworn detailed descriptive list. If the court grants the request, no traversal is allowed.
  • Each party must affirm under oath that the detailed descriptive list filed by them contains all the community assets and liabilities known to them. Amendments to the descriptive lists are permitted, and no inventory is required.
  • Within 60 days of the service of the last filed detailed descriptive list, each party must either traverse or concur with the inclusion or exclusion of each asset and liability and the valuations in the other party’s detailed descriptive list. For good cause shown, the court may extend the time for a party to traverse or concur with the detailed descriptive list of the other party. The court will determine the community assets and liabilities at the trial of the traverses, and asset valuations will be determined at the trial on the merits. At its discretion, the court can try and determine all issues, including those raised in the traverses, in a single hearing.
  • The court can appoint experts as it deems appropriate to assist in settling the community and partitioning community property. These experts can assist in classifying assets as community or separate, appraising community assets, settling the parties’ claims, and allocating assets and liabilities to the parties, in accordance with applicable Louisiana statutes.

The Court Shall Then Partition The Community In Accordance With The Following Rules:

  • The court evaluates the assets at the time of trial on the merits, determines the liabilities, and adjudicates the parties’ claims.
  • The court splits the community assets and liabilities to ensure each spouse receives property of an equal net value.
  • The court allocates or assigns to each spouse all the community assets and liabilities. In doing so, the court may equally or unequally divide a specific asset or liability, or it may allocate it entirely to one spouse. In allocating assets and liabilities, the court considers the nature and source of the asset or liability, each spouse’s economic condition, and any other relevant circumstances. The allocation of a liability to a spouse obligates that spouse to extinguish the liability. This allocation does not affect creditors’ rights.
  • If the allocation of assets and liabilities results in an unequal net distribution, the court orders the payment of an equalizing sum of money. This payment can be immediate or deferred, secured or unsecured, and under conditions as directed by the court. The court may order the creation of notes, mortgages, or other necessary documents or impose a mortgage or lien on either community or separate property, movable or immovable, as security.
  • If the allocation of an asset, wholly or partially, would be unfair to a party, the court can order the parties to draw lots for the asset or mandate a private sale of the asset under suitable terms and conditions. These conditions can include the minimum price, sale terms, realtor listing agreements, and the duration for offering the asset for private sale.
  • Only if an asset can’t be allocated to a party, assigned through the drawing of lots, or sold privately, should the court order a partition by licitation. The court can establish the minimum bids and other terms and conditions for offering the property at public sale. If a partition by licitation occurs, the court must explicitly state why the asset can’t be allocated, assigned by the drawing of lots, or sold privately.
  • Provisions of a domestic relations order or other judgment partitioning retirement or other deferred work benefits between former spouses are considered interlocutory until the domestic relations order has been granted “qualified” status from the plan administrator, and/or until the judgment has been approved by the relevant federal or state authority in compliance with applicable laws. Amendments to this interlocutory judgment, to align with the plan’s provisions, shall be made with the parties’ consent or following a contradictory hearing by the court that granted the interlocutory judgment. The issuing court retains continuing jurisdiction over the subject matter and parties until final resolution.
  • Unless the parties agree to an extension of time or the court grants one for good cause, a party failing to comply with any time limit in this section may be ordered to pay reasonable attorney fees and court costs to the other party for filing or responding to the motion. However, if the court rules that the other party’s sworn detailed descriptive list constitutes the community’s assets and liabilities, it will not award attorney fees and court costs to the other party.

For more information on Division Of Assets & Debts In Louisiana, a free initial consultation with The Law Offices of Williams & Williams PLC. is your next best step. Get the information and legal answers you are seeking by calling (318) 731-9182 today.

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