Personal Injury Settlements and Marital Property

In North Carolina, a personal injury settlement for pain and suffering, property damage, or financial losses is not always safe from divorce. If you’ve filed a personal injury claim, you should understand how equitable distributions during divorce can affect your settlement. Let’s run through different scenarios to help you understand how accident settlements work during a divorce.

If you’re injured in a car accident or hit by a vehicle, you may experience broken bones, a bruised spine, or a head contusion. These fall under the umbrella of ‘pain and suffering.’ For pain and suffering, disability, disfigurement, or lost limbs, the personal injury award is considered separate property belonging only to the injured spouse and would not be divided as marital property in a divorce settlement. Loss of services and loss of consortium are also considered separate property of the non-injured spouse and would generally not be divided in a divorce.

Property damages for trucking accidents can be extreme, and sometimes the vehicle is a total loss. Even a collision with another passenger vehicle can result in hefty repairs. The party claiming the proceeds of a personal injury settlement must prove by a preponderance of the evidence that the property meets the definition of separate property. This means that the party must prove it is more likely than not that the property involved in the personal injury settlement was not considered part of the marital estate.

If an accident or workplace injury lawsuit has financial repercussions, you can usually claim those as economic damages. But be aware that the personal injury award for lost wages, loss of earning capacity, and medical expenses is considered marital property. The damages are repaying you for something you would have contributed to the household.

However, if you separated prior to the injury occurring, your spouse likely has no claim against the proceeds of your settlement.

Car accident victims should be aware of insurance adjusters’ inadequate offers and the challenges of negotiating a settlement without an experienced accident attorney. Underestimating financial damages and pain and suffering can stifle your recovery, especially if some of those damages will be divided in a divorce settlement. Overstating the damages can jeopardize the validity of your claim.

When asking your car accident attorney questions about your case, find out if the potential personal injury settlement is considered marital property, how child support liens affect injury awards, or other specifics you’re experiencing. Even if family law isn’t a practice area, your attorney can likely refer you to someone who can help.

Experienced attorneys at Miller Law Group are here to help you with your personal injury settlement to maximize your compensation during a divorce or any life event. Contact us for a free consultation today.