How To Divide Assets in A Baton Rouge High Net Worth Divorce

How to divide assets in a Baton Rouge high net-worth divorce is one of the biggest concerns for people going through a divorce. Each decision can carry weight for years to come. It takes more than just dividing things down the middle. Every case has unique details that can come into play.

What Is Marital Property?

In Louisiana, any property gained during the marriage is usually treated as community property. This includes physical items as well as income. Even if the property is in one spouse’s name, it may still be shared.

Separate property only belongs to one spouse. This contains anything owned before the marriage. Sometimes, a family member gives a spouse assets through inheritance that could also remain separate property.

Sometimes, property can start out as one type of property and move to another. For example, one spouse may have bought a home before getting married. If they paid the mortgage with shared income, the house might be considered community property.

35% of unmarried people say that they’re likely to sign a prenuptial agreement in the future. If this doesn’t happen, the property could be divided based on contributions from each spouse.

Community Property Law

Louisiana follows a community property system. This means both spouses share equal ownership of anything gained during the marriage. Courts begin with a 50/50 split of all community property.

The judge first classifies each asset as either community or separate. Then, the court assigns a value to each item. After that, the judge divides the property.

Sometimes, each spouse receives different assets of equal value. In other cases, items have to be sold. Then, the proceeds are split to pay each spouse.

There are cases where equal division does not feel fair. In some relationships, one spouse might have spent significantly more than the other spouse. The court can adjust the division accordingly.

Complex Assets

Some high-net-worth divorce cases involve property that’s hard to value. Some of the most common examples include businesses and rental properties. Courts require a valuation to divide these.

A business might need a full valuation report. This can look at past income as well as the business’ projected earnings.

If the business was started during the marriage, it may be fully community property. If one spouse owned it before the marriage, only the increased value during the marriage might be split.

Real estate is also common in these cases. Investment properties may need appraisals. If the property was used as a rental, the income from that property can be considered. The current market value is also considered.

Settling vs. Going to Trial

Some high-net-worth divorces settle before going to court. Here are some elements to think about when evaluating the trajectory of a case:

• Financial records: The basis of any financial claim includes documents. Things like account statements can show a spouse’s income. Other records can show who owns what. A spouse who hides information can lose the trust of the judge.
• Business valuations: If one or both spouses own a business, the court may need a valuation. Earnings reports can be used as one element of the valuation. An outside firm may be used to set the value of the business.
• Testimony: Spouses may give sworn statements. These can happen before trial or happen in court. They are used to support that spouse’s claims. They can also be used to challenge the other side. The judge will weigh the credibility of each statement.
• Asset tracing reports: These show where funds came from. Tracing is used when one spouse claims an asset is separate. Judges use this to decide what belongs to whom.
• Written agreements: 15% of Americans who are engaged or married have signed a prenuptial agreement. These may be presented as evidence. The court will review them to see if they are valid. They must meet certain legal standards. If so, they can limit what the court divides.

Regardless of whether you end up settling or going to trial, both sides need to back up their claims with evidence.

Why Do I Need an Attorney?

High net worth divorces often involve more than just dividing property. Each type of asset adds more steps to the process. An attorney can help sort through those steps.

A proficient attorney knows how to protect what belongs to one spouse. They can challenge claims from the other side. Legal help can make a difference in how the court rules.

FAQs

Q: What Are Marital Assets in Louisiana?

A: Marital assets are any property gained during the marriage. This property belongs to both spouses. This is because Louisiana is a community property state. Separate assets belong to one spouse only. Most assets follow this structure unless there is a prenuptial agreement signed before the marriage. 42% of U.S. adults support the use of prenups.

Q: How Do You Protect Inherited Assets From Division?

A: To protect inherited assets from division, they must stay apart from community property. The person who received the inheritance should keep it in a separate account. They should not use the inherited money to pay joint bills. Records need to be kept showing whose name the asset is in.

Q: What Happens if One Spouse Suspects the Other Is Hiding Assets?

A: If one spouse suspects the other is hiding assets, it is a serious issue. The spouse can request more financial documents from the other spouse. An attorney can also use depositions to request them. Courts can appoint forensic accountants to trace missing funds. If hidden assets are found, the judge might assign penalties to that spouse.

Q: Can One Spouse Be Awarded a Larger Share of the Assets?

A: One spouse can be awarded a larger share of the assets. Louisiana law aims to divide community property equally. Sometimes, the court adjusts this. For example, if one spouse tries to hide assets, the judge can give the other spouse a larger share. A court can also consider things like debts if they apply.

Louisiana Family Law Attorney

No one will protect your assets for you. Dividing property in a high-net-worth divorce can protect your peace of mind. An attorney can help make the process more stable. Schedule a consultation with Longman Jakuback to create a structured plan.