Metaphorical Fruits — Photo by micheile henderson on Unsplash

The word "fruits" under Louisiana law has a specific meaning. It is defined in the Civil Code as follows:

"Fruits are things that are produced by or derived from another thing without diminution of its substance.

There are two kinds of fruits; natural fruits and civil fruits.
Natural fruits are products of the earth or of animals.
Civil fruits are revenues derived from a thing by operation of law or by reason of a juridical act, such as rentals, interest, and certain corporate distributions."

[Article 551 of the Louisiana Civil Code]

Elsewhere in the Louisiana Civil Code [Article 2339], it is provided that the natural and the civil fruits of the separateproperty of a married person, oil, gas and other minerals produced from separate property, and bonuses and royalties arising from a mineral lease automatically fall into, or become a part of, the community property of that person and his or her spouse.

The rule established by Article 2339 is called a "default" rule, because it provides a certain result or consequence in default of action, that is, if one does nothing. Considering the community property rules in the law to the effect that anything purchased with community property monies belongs to the community property estate of a married person, this rule concerning fruits of separate property can be a trap or surprise to those who are not aware of it. *

For people who own separate property and feel that the fruits and revenues of their separate property, as well as the things purchased with those fruits, should be and continue as separate, the legislature provided a way to have that occur, a way to change the default rule. The same Article 2339 of the Civil Code states that a married person may reserve the fruits and revenues of his or her separate property for his or her separate estate. This is done by a written declaration made before a notary public and two witnesses. In order for this declaration to be effective, after signing it one must deliver a copy of the declaration to their spouse, and file the affidavit in the conveyance records of each parish in which one might own separate immovable property [real estate] and in the conveyance records of the parish in which the declarant is domiciled.

* Under the Louisiana Civil Code, separate property includes property acquired by a spouse prior to the establishment of a community property regime, property acquired by a spouse with separate things, and property acquired by a spouse by inheritance or by donation to him or her individually.

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Disclaimer: This blog does not provide legal advice and does not create an attorney-client relationship. If you need legal advice, please contact an attorney directly.

Fruits and Revenues of Separate Property