How is personal injury settlement money divided in Divorce?
How the proceeds from a personal injury case are divided in a divorce will depend on several factors, mainly, the reason the proceeds were awarded.
- Personal injury proceeds that are awarded for bodily injury or pain and suffering, belong 100% to the spouse who was injured and not divisible in divorce.
- Personal injury proceeds that are awarded for damaged property (such as to repair a car) or as a compensation for lost wages, are likely being paid to reimburse you on the loss/damage of community assets; in that case, the proceeds are considered community property and divisible in divorce.
