At least some portions of a personal injury settlement could be considered marital property in New York. However, it is important to note that everyone’s case is different, and that you might or might not have to split your settlement during divorce proceedings.
As we handle your claim or lawsuit, our Long Island personal injury lawyers will be happy to address all of your questions about what damages you are entitled to and how to protect your assets in the event of a divorce or other life-altering event.
In This Article
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- What is Marital Property?
- When is Your Spouse Entitled to Your Personal Injury Settlement?
- What if I Was Injured Before or After the Marriage?
- Personal Injury Law is Often Complicated
- Get the Personal Injury Settlement You Deserve
What is Marital Property?
Marital property is defined by the NYC Bar as “property and cash you obtained during the marriage. This includes but is not limited to income, real estate, and motor vehicles. There are some exceptions to what is considered marital property, including any property or cash exempted in a prenuptial agreement and any personal injury settlements obtained by one spouse but not the other. These exceptions are considered separate property. Separate property is owned exclusively by one spouse, and the other has no claim on it. When a couple divorces, they have to come to an agreement over how to split marital property, but separate property remains the property of the individual spouse.For a free legal consultation, call (516) 932-0400
When is Your Spouse Entitled to Your Personal Injury Settlement?
Most of your personal injury settlement is separate property, not marital property. However, there are limited circumstances when your spouse could be legally entitled to a portion of your settlement. Since income earned during the marriage is typically marital property, any portion of your settlement that compensates you for lost income could count as marital property. This might include damages for:- Loss of wages, tips, bonuses, and other forms of income
- Loss of future earning capacity caused by permanent or long-term injuries
- Pain and suffering
- Diminished quality of life
- Disability
- Medical expenses
- Damage to your property
How Much of My Personal Injury Settlement Will My Spouse Get?
If any part of your settlement is marital property, it is up to the court to decide how much that property is worth and how much each spouse should get. This could mean a 50/50 split, but New York courts do not automatically divide assets this way. First, they will consider factors like:- How long you were married
- How much each spouse will receive in alimony or other forms of support
- The needs of your children (if there are any)
- Each spouse’s financial situation
- The tax implications of dividing assets in a certain way
What if I Was Injured Before or After the Marriage?
Your spouse is only entitled to your lost income damages if you were injured and recovered those damages while you were married, because this counts as “cash you obtained during the marriage.” They are not entitled to those damages if:- You were injured and received a settlement before you were married. Assets you already owned prior to the marriage are considered separate property, not marital property. This is true even if you continue receiving structured settlement payments from a premarital injury during your marriage.
- You were injured and received a settlement after your marriage. Once you and your spouse divorce, they have no right to any new assets you acquire (except in situations approved by the court).
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Personal Injury Law is Often Complicated
The above guide contains general information that applies in many cases, but do not assume all of it applies to your particular circumstances. If you want to protect your personal injury settlement, the best time to start asking questions and taking action is as you are seeking it. Our personal injury attorneys will work with you to figure out the right way to fight for—and keep—all of the money you deserve. We will determine:- What damages you are entitled to and how much they are worth
- Whether to negotiate for a pretrial settlement or take your case to trial in pursuit of a jury award
- Whether you should accept your compensation as a one-time lump sum payment or a structured settlement paid out over several years
- What parts of your settlement count as marital property and which will remain separate property
- How much of your lost income/earning capacity compensation could go to your spouse and what factors influence that calculation
- How each decision you make during your personal injury claim or lawsuit could affect what you get and what you have to give up during divorce proceedings
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Get the Personal Injury Settlement You Deserve
Friedman & Simon, L.L.P., has been representing injury victims since 1991. It is our job to advocate for your rights and fight for all of the damages you need. If you have questions about how to obtain and protect your settlement, including whether or not your personal injury settlement is marital property, call for a free consultation today.Call or text (516) 932-0400 or complete a Free Case Evaluation form