Sometimes, people in the midst of a divorce sustain injuries due to the negligence of a third party and file a personal injury claim. If you find yourself in this situation and receive a settlement before or during your divorce proceedings, you might be wondering if you need to share the recovery money with your ex-spouse and, if so, how it would be divided.
Your personal injury lawyer in Virginia can explain that the courts will allocate the portion of the personal injury settlement that qualifies as marital property if it was awarded just before or after the divorce legal process started. Judges consider various factors when determining the categorization of property. If the settlement is deemed marital property (property acquired during marriage), it will be eligible for division between the two parties getting divorced.
Figuring out the exact portion of the settlement that needs to be shared can be complicated, so it’s essential to consult with an attorney for guidance.
What Equitable Distribution Means for Personal Injury Settlements
In Virginia, the division of marital property during a divorce follows the state’s equitable distribution guidelines that dictate that property should be allocated fairly. This does not mean assets are divided evenly. There are numerous issues that can play a role in how this is calculated, including:
- The financial situation and income potential of each spouse
- Each spouse’s role in acquiring marital property
- Anticipated financial requirements and obligations of each spouse in the future
- Who–if anyone–is paying alimony
- Pensions, health insurance, inheritance rights, and tax implications
- Any other aspects the court deems relevant
When it comes to settlements received because of a personal injury, Virginia law says the court will decide how much of the payment attributable to lost wages or medical expenses accrued during the marriage that were not covered by health insurance will be marital property. The replacement or repair of any marital assets (such as a car) would also be counted as marital property.
However, if the personal injury settlement compensates the victim for pain and suffering related to disfigurement, disability, or incapacitation, this portion of the award will not be included in the amount shared with the spouse.
Example of How This Might Work
Let’s say you received $50,000 as part of a personal injury claim that resulted from an accident, and the amount was calculated as:
- Medical expenses: $25,000
- Lost wages: $10,000
- Vehicle repairs: $10,000
- General pain and suffering: $ 5,000
In this case, medical expenses, lost wages, and car repairs could be deemed marital property and subject to equitable distribution. However, the $5,000 for pain and suffering would be separate property and not split between spouses.
If you are involved in a personal injury case, make sure to familiarize yourself with as many aspects of the legal process as possible, including what happens after deposition in a personal injury case and if you can switch attorneys in a personal injury case if it is not progressing the way you believe it should be.
Talk to an Experienced Professional
This article outlines some of the general principles followed by Virginia courts. It is important to note that any party claiming that personal injury settlement funds should be treated as separate or marital property needs to provide evidence to support their claim.
Financial compensation plays a critical role in helping people who have suffered injuries due to someone else’s negligence. This compensation could involve personal injury settlement awards, workers’ compensation benefits, and disability benefits. Those unable to work may be entitled to a larger share of injury compensation and marital assets.
Because there are so many nuances to the laws in the Commonwealth of Virginia, discuss the specifics of your situation with your attorney from Coastal Virginia Law. We will explain the process, how settlement proceeds might be impacted by equitable distribution, and help you get the compensation you deserve.
