Are Personal Injury Settlements Marital Property? 

When a married couple is already going through a divorce, the compensation in a personal injury claim is usually separate from the marital property. However, in rare cases, the settlement award may come into play at the breakup of the partnership, necessitating a division of the award between the two parties. You should talk to a Boston personal injury lawyer today to learn more. 

Personal injury awards being separate properties 

The typical norm for personal injury awards is that the financing obtained differs from the marriage. Even if the couple divorces, these funds will be excluded from the divorce settlement. Depending on the judge’s ruling, the regular division of assets will need the split of all money, accounts, property, and possessions. Debts and other liabilities are included. The decision of this judicial authority will become the rule. However, because it is a recovery of damages owing to the individual rather than the couple, the settlement of a personal injury is often not included as marital property.

What is the marital property between spouses? 

Almost all property acquired during the marriage becomes marital property. Some states, however, will segregate some goods and ensure that only the person who earned it keeps it once the partnership ends. Marital property in a typical divorce will contain joint bank accounts, property in one or both names and other assets that both spouses will utilize over time. This might also include a car registered in only one name but used by both at some time, as well as other assets that are a part of the couple’s lives. There are a few exceptions and workarounds.

Individual property 

Personal and individual property is often granted to the victorious plaintiff in personal injury settlements. This establishes compensation outside marital property since it is the person’s reward. There are several exceptions, such as when the spouse combines the funds with the marriage arrangements. Other exclusions occur when the court orders a hearing to decide whether this money may be considered marital property. Depending on the state and individual court, the award may move via the split within a divorce procedure.

Community property 

Some states have laws that require the property acquired or earned via common property to be divided upon a divorce regardless of how much each individual obtains or earns during the marriage. This criterion is only broken when the assets are distinct properties. These must exist as owned or claimed before the marriage unless it is a gift or similarly donated or if it is via pain and suffering from a personal injury settlement. Any other portion of a settlement may spontaneously become community property throughout the marriage.

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