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 PropertyThis is property that belongs equally to both spouses. It includes any property, asset, or liability either party acquires during the marriage with the exception of property acquired by gift or inheritance. Parties can opt out of community property laws with a prenuptial…Read more about Community Property and divisible in divorce.