DIVORCE: Provides relative to classification of separate property

2026 Regular Session Introduced by Jeremy LaCombe

Future wages earned under contracts during a community property regime, if unearned at termination, become the separate property of the contracting spouse (including severance/liqu

Effective date: 08/01/2026.

Title and Purpose

Bill: HB 1044

Session: 2026

Jurisdiction: Louisiana

Subject: Divorce — classification of separate property

Core aim: Establish that future wages or earnings specified in an employment contract entered during a community property regime are the separate property of the contracting spouse if those wages/earnings remain unearned at the time the community regime terminates. This includes amounts later paid as severance pay or liquidated damages.

Key Provisions

New Statutory Provision

Enacts R.S. 9:2801.3 titled “Award for future earnings; separate property.”
Contents:
- Future wages or earnings set forth in an employment contract, when such contract is executed during the period of the community property regime, are deemed the separate property of the contracting spouse.
- This classification applies to any portion of those wages/earnings that remains unearned at the time the community property regime terminates.
- Includes future amounts paid later under the contract, such as severance pay or liquidated damages.

Legislative Intent

Explicitly states the intent to overrule Orgeron v. Orgeron, 413 So. 3d 390 (2025), which relates to the classification of future earnings in the context of community property.

Who/What Is Affected

Parties in a divorce within a community property regime in Louisiana.

Employment contracts executed during the community property regime (e.g., marriages recognized as community property).

Unvested or unearned portions of those contracts at the time the regime terminates, including any later severance or liquidated damages payments.

Procedural and Timeline Aspects

The act adds a new provision to Louisiana Civil Code (R.S. 9:2801.3).

Effective upon passage of the bill and its incorporation into law (no separate delayed effective date specified in the text provided).

The bill’s action history shows a standard legislative path:

Passed committee and floor in the House.
Sent to Senate; received,Rules suspended; passed the Senate with unanimous vote.
Ready for any final gubernatorial action as of the most recent entry in the provided timeline.

Implications and Impact

Property classification shift: Strengthens the position that certain future earnings are not part of the community estate if unearned at termination, instead treating them as the spouse’s separate property.

Impact on divorce settlements: Could affect alimony/settlement negotiations by clarifying ownership of unearned future earnings and severance pay under contracts executed during the community regime.

Overruling potential precedent: The bill explicitly aims to overturn a recent case (Orgeron v. Orgeron, 2025) on the same issue, signaling a legislative preference in this area.

Summary

HB 1044 creates a clear rule that, for contracts entered into while a marriage is under Louisiana’s community property regime, any future wages or earnings that remain unearned at the termination of that regime become the separate property of the contracting spouse. This includes amounts later paid as severance or liquidated damages. The bill also signals its intention to overturn a recent appellate decision on the topic and adds a new statutory provision to codify this treatment.

Bill