How You Can Protect Your Personal Injury Settlement During a Divorce
For some people, the timing of a legal settlement may coincide with a divorce. In some situations, divorcing couples can find determining who is entitled to the awarded settlement challenging. The State of California functions under community property law in terms of the distribution of assets of separating married couples.
Community property laws basically work to make separation of assets simpler by doing a 50/50 split. Community property extends to:
The money that either spouse earns during the marriage.
The items and assets purchased with money earned by either spouse during the marriage. If you and your spouse bought a home and the deed lists you both as a married couple, the home is community property.
Separate property that has become inseparable from the community property. An example may be an inheritance you received that was deposited into a shared checking account. While you may be able to provide documentation that shows the amount you inherited, it’s community property if you cannot.
There are other factors that affect what each spouse owes, such as gifts and inheritances that become the separate property of the spouse who received them. While this may sound straightforward, many people in a divorce feel that a 50/50 split is simply unfair for a variety of reasons. A personal injury settlement can make this process even more complicated.
Factors of a Divorce and Personal Injury Settlements
During a divorce, every case has numerous factors that determine how to legally and justly divide marital assets. When it comes to your personal injury settlement, the elements of the situation that caused the settlement will largely decide if and how the funds from that settlement are split between spouses. Some courts approach these cases very simply: whoever was injured is entitled to the settlement funds. Other courts take a much more meticulous approach and analyze all elements of the settlement.
For example, say you’re in a motor vehicle accident that resulted in damages for medical expenses, physical therapy, ongoing treatments, lost wages from missed time from work, pain and suffering, and property damage to your car. If the car was purchased under community property law and your medical expenses were covered by shared insurance or paid for by a shared account, a court may decide your spouse is entitled to half of the amount awarded for the property damage and medical bills. If a spouse took time off from work to care for his or her injured spouse, however, that may affect the court’s ruling.
Depending on the court, though, there may be no math involved; the injured party is the one who receives the 100% settlement, and that person is the only one entitled for the funds awarded for pain and suffering.
Seek Reliable Legal Counsel
In any divorce proceedings, reliable legal representation makes the process much less stressful for everyone involved. Your attorney should be able to accurately navigate the details of your case and the different aspects of your settlement. A good attorney will ensure you aren’t losing compensation for damages that should only be owed to you.
Divorces are often messy. When complex situations are added to the proceedings, like a personal injury settlement, divorces can be even more difficult. A personal injury case can further exacerbate an already difficult situation. The Liljegren Law Group can provide reliable, compassionate legal counsel during these stressful times.
We approach our cases professionally and aggressively, meaning we won’t encourage resentment between you and your former spouse—but we will ensure you aren’t unfairly losing money. If you have any questions about California community property law or need some assistance navigating a legal dispute regarding your personal injury award, reach out to us to start reviewing your case today.