If money is involved, Wealth Planning Law Group helps families protect it from creditors, divorces, lawsuits, and the government. Unfortunately, approximately 50% of all marriages end in divorce. If you want to protect assets as they pass from generation to generation, it is important to consider pre-nuptial planning. In Louisiana, there are two primary tools we use to protect someone’s wealth when they are getting married.
First, we can draft and negotiate a full separate property agreement in which the community property laws otherwise applicable in Louisiana do not apply and instead a separate property regime is used such that whatever is in each spouse’s name is the separate property of that spouse. This avoids the complexity and possible litigation involving commingling of separate and community funds and ensures that assets gifted by parents to their children stay in the bloodlines.
The second option that is less protective is a Declaration of Reservation of Separate Fruits in which each spouse can declare that the fruit (rent, royalties, dividends, interest, etc.) generated by a spouse’s separate property will remain separate property. Without this, under Louisiana law, the fruit of separate property is considered community property. Again, it is very important that you consult with a knowledgeable attorney well before marriage in order to review your options and get this important planning completed well before the marriage.