Community Property

Question 1

What is a legal regime?

Answer 1

Community of acquets and gains that is the default regime.

Question 2

What is a contractual regime?

Answer 2

Parties’ K establishes a separate property regime with other possible deviations.

Question 3

What is a modified legal regime?

Answer 3

Can be established through a matrimonial agreement modifying the CP regime.

CP regimes has not been excluded or modified by the matrimonial agreement retain force and effect.

Question 4

Who does CP apply to?

Answer 4

Spouses domiciled in LA.

Even if not governed by legal regime due to both not being LA domiciliaries, choice of law provisions may be applicable.

Question 5

What is the nature of legal resime?

Answer 5

Patrimonial mass that is a universality of assets and liabilities.

Property and obligations belong to the individual spouses.

Question 6

How is the CP split up?

Answer 6

Each spouse owns a present undivided 1/2 interest in the CP.

Question 7

Is the undivided interest Inalienable?

Answer 7

Yes. Spouse may not alienate, encumber, or lease to a third person his undivided interest in the community or in
particular things of the community prior to the termination of the regime.

Question 8

Is CP alienable?

Answer 8

Yes. Alienation, encumbrance, or lease to a third person of a portion of the community or
things of the community in full ownership is allowed.

Question 9

What happens when a spouse tries to dispose of the Undivided Interest?

Answer 9

Absolute Nullity. attempted disposition by a spouse of his undivided interest in the community or in things of the community by inter vivos act in favor of a third person is an absolute nullity.

Question 10

What is the general presumption?

Answer 10

CP is presumed. Either spouse may rebut that property is separate by a preponderance of the evidence.

Question 11

When is asset classification fixed?

Answer 11

At acquisition of the asset, so it is necessary to ascertain the precise moment in time when ownership passes.

Question 12

Are there mixed titles?

Answer 12

Property is CP or separate. Prohibition on mixed titles.

Question 13

What about real subrogation?

Answer 13

Principle of real subrogation is applicable to both separate and community property. When a thing forming a part
of the separate property or community property of a spouse is converted into another thing, the mass of the separate
property or community property is not diminished. The new thing takes the place of the old. [La. Civ. Code art. 2341,
cmt. c.]

Question 14

What about commingling of funds?

Answer 14

If funds are commingled, they do not lose their identity. When the funds can noy be traced as CP or SP, then they’re CP. Spouse must prove that some portion of the account balance is separate must prove not
only that separate funds were deposited into the account, but that they were not withdrawn. In an active account, it is
difficult to meet this burden, as the funds can become hopelessly commingled such that all the funds in the account
may be classified as community.

Question 15

What is CP?

Answer 15

(i) Property acquired during the existence of the legal regime through the effort, skill, or industry of either spouse;
(ii) Property acquired with community things or with community and separate things, unless classified as separate
property under Article 2341;
(iii) Property donated to the spouses jointly, and natural and civil fruits of community property;
(iv) Damages awarded for loss or injury to a thing belonging to the community; and
(v) All other property not classified by law as separate property.

Question 16

What is SP?

Answer 16

(i) Property acquired by a spouse prior to the establishment of a community property regime;
(ii) Property acquired by a spouse with separate things or with separate and community things when the value of
the community things is inconsequential in comparison with the value of the separate things used;
(iii) Property acquired by a spouse by inheritance or donation to him individually;
(iv) Damages awarded to a spouse in an action for breach of contract against the other spouse or for the loss
sustained as a result of fraud or bad faith in the management of community property by the other spouse;
(v) Damages or other indemnity awarded to a spouse in connection with the management of his separate property;
and
(vi) Things acquired by a spouse as a result of a voluntary partition of the community during the existence of a
community property regime.

Question 17

What about earnings?

Answer 17

Property acquired through the effort, skill, or industry of either spouse is community property if the effort was
expended during the existence of the legal regime. Timing is irrelevant.

Question 18

What about sweepstakes earnings?

Answer 18

CP property. Money awarded as a result of spouses own skill and effort and mailing entry is CP.

Question 19

What about contingency fee contracts?

Answer 19

Classified on a pro rata basis. Portion of
the fee attributable to work performed during the existence of the community is community property. The portion
of the fee attributable to work performed after termination of the community property regime is separate property

Question 20

What about insurance policy renewals?

Answer 20

Depends on the extent that they’re the result of the agent-spouses effort, skill, or industry during the CP regime. Portion of work after termination of the CP is separate property. Non-receiving spouse has to prove that that it happened during the CP regime.

Question 21

What about fruits and revs from CP?

Answer 21

Fruits are things that are produced by or derived from another thing without diminution of its substance. [La. Civ. Code art. 2339, cmt. c.] Minerals and related payments are not “fruits,” because their production results in
depletion of the property. However, they are treated by the Civil Code as fruits for classification purposes in the
community property context only.

Question 22

Can a spouse reserve fruits?

Answer 22

Yes, as as his separate property by a declaration made in an authentic act or in an act under private signature duly acknowledged.”

Must be recorded and copy must be provided to spouse prior to recording.

Question 23

What about reservation of fruits from immovables?

Answer 23

Effective when a copy is provided to the
other spouse and the reservation is filed in the conveyance records of the parish in which the
immovable property is located.

Same as movables but in which the D is domiciled.