The answer is, the payments are considered the community property of the spouses. Even if the rental property itself was acquired before marriage, and is therefore separate property, the rental payments are considered fruits of the rental property. Louisiana law states that the fruits of separate property are classified as community property.
However, if a party wishes to reserve the rental payments as his separate property, he may do so by making a written declaration to that effect. The declaration must be in the form of a notarized, authentic act. The property owner must provide a copy of the declaration to his spouse prior to filing, and the declaration must be filed in the conveyance records of the parish where the property is located. Such a declaration may also be incorporated into a prenuptial agreement.
For more information, contact us at
info@thebluestink.com
or (225) 456-2200.
If the property were owned by an LLC or a Corporation, would the answer be different? If so how?
ReplyDeleteThat is a very good question, Ms. Ford. According to Louisiana law, the income of a spouse is considered community property. So if a person is drawing as income the rental payments paid to an LLC or corporation, then that income is community property, unless otherwise specified in a prenuptial agreement.
DeleteIf you are in a jurisdiction outside of Louisiana, I recommend consulting with an attorney in that jurisdiction.