Is my husband’s business checking account considered community property?

I got married 8 months ago. My husband owns a business (LLC) that he started before we got married. I am looking to file chapter 7 bankruptcy individually. I want to protect my husband’s assets, business included, from my bankruptcy. We live in a community property state. Neither of us have acquired any assets during our marriage. So I’m curious if his business checking account considered community property? He opened the account before we were married and my name is not on it. Only his name and the business’s name are listed on the account. We both have separate personal checking accounts but I believe those are considered to be community property.

Asked on July 23, 2012 under Family Law, Louisiana

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

It is not the business itself that dictates whether it would be part of the community property assets or not. It is whether or not those monies were used for community assets. For example, did he use monies from the business to help pay the light bill, buy things, enjoy vacations? The bankruptcy will undoubtedly impact his personal credit but you need to keep in mind you do have community assets. If you own a car or a home, if he pulled money out of that business to place in his personal checking account, it becomes commingled. You will both absolutely need to speak with bankruptcy counsel to show the best route for you both.


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