From secrets to favorite activities to physical property, married couples tend to share most of their lives with another. Untangling these types of personal connections during a divorce can be tricky enough without piling things like property division on top. This is why it can be extremely distressing when individuals realize that they will not just be splitting physical property during divorce — they will also have to deal with debt.
Louisiana is a community property state, which means that marital property is generally split into two even halves. Things like income and other assets that are acquired or accumulated during the marriage are considered to be the equal property of both spouse. This includes things like debt.
Debt can be either separate or community property. If the debt was accumulated during the course of the marriage, then it is generally considered marital property and as such has to be divided. This is true even if the debt was only in one person’s name, such as a credit card or auto loan. However, there are still some exceptions in this case, and there may be instances in which a specific debt might be designated as separate property.
Although figuring out which assets and debts are marital property and which are separate might seem like an easy process, it can be quite complicated at times. Consider a Louisiana business that was started before saying “I do,” but accumulated significant wealth afterwards, or a debt made out to only one person based on their personal assets. Securing the best possible results from property division can be essential to financial stability after a divorce, so it is important to get the details right.