Divorce Lawyers: Personal Injury Damages and Community Property in Louisiana

As in all my articles on community property in Louisiana, I typically state some general contextual things about the legal framework here before further explaining via example.  As a community property state, Louisiana spouses share what is known as a community property regime.  Generally, this means that the property which the spouses earn during the course of the marriage is shared between them equally, and also divided equally by the divorce lawyers at the conclusion of the marriage.

In a contrast to community property, Louisiana divorce lawyers also have something known as “separate property.”  This can be property that was acquired by one of the spouses before the marriage; and it also can be, among other things, property which was acquired during the marriage and which also falls under one of the exceptions to community property in Louisiana.

For example, let’s say that Frank and Lisa have been married for nine years.  Over the course of those nine years, Frank and Lisa discovered their mutual love for exotic automobiles.  As a result of this mutual love, in year five of their marriage they decide to purchase a brand new and super-fast sports car from Italy.  The purchase of the vehicle is made by both of them; and the money that each of them uses comes from the money that they have earned up until that point while married.  The car costs one hundred thousand dollars.

Now let’s say that Frank is driving this sports car down the street one day.  Suddenly, and without warning, he is struck from the side by an eighteen wheel truck.  The accident is not at all Frank’s fault.  He is thrown from the automobile violently, but has the good fortune of landing in a nearby patch of grass.  His only injuries are a broken collarbone and a broken leg.  The sports car, however, is totally demolished.

Frank sues the trucking company in a personal injury lawsuit.  He sues for two things: the pain and suffering which he endured as a result of the injuries, as well as the value that was lost with the destruction of the sports car.  Just before an impending trial date on the matter, the insurance company for the trucking company settles the law suit, and awards forty thousand dollars to Frank for his pain and suffering, and also the one hundred thousand dollars for the car.

Now let’s say that the day after he gets the settlement check, he and Lisa both contact divorce lawyers.  One of the main issues between them is the settlement check, and who it belongs to.

One source of guidance in this situation may be Louisiana Civil Code article 2344.  This article states that damages for personal injuries sustained by one spouse, even if during the marriage, are that spouses separate property.  This would likely mean that the forty thousand dollars for Frank’s pain and suffering he does not need to split with Lisa.  Article 2344 goes on to say however that “…the portion of the damages…for the loss of community earnings, is community property.” 

The divorce lawyers might argue that the above quoted language means that, while Frank gets to keep the money for his pain and suffering, the portion of the damages which are reimbursing the car are probably community property.  This is because the car itself is likely community property: it was purchased by both spouses during the marriage and with money which they earned during the marriage.

This article is written to be general information only; it should not be taken as formal legal advice.  Will Beaumont.  New Orleans.