A pressing concern often surfaces during divorce proceedings: “Are personal injury settlements considered marital property?” This question is especially pertinent in places like New York, where specific laws dictate how assets are divided upon divorce. How personal injury settlements are categorized can dramatically influence the financial dynamics for both parties involved.

Keep reading to learn more from the skilled Suffolk County personal injury attorneys at Carner & DeVita. Below, we delve into the nuances of New York law to uncover how these settlements are handled during a marriage’s dissolution.

are personal injury settlements considered marital property

Understanding marital property in New York

In New York, marital property includes all assets acquired by either spouse during the marriage, regardless of whose name the assets are in. This generally includes wages, homes bought during the marriage, and assets built up through joint efforts. The division is guided by the principle of equitable distribution, which seeks a fair but not necessarily equal allocation of assets.

New York statutes and personal Injury settlements

According to New York Domestic Relations Law Section 236, the classification of personal injury settlements in divorce hinges on several factors. The key consideration is what the settlement was intended to compensate. Settlements can be divided into components for:

  • Compensation for lost wages – Typically considered marital property because they replace wages that would have been earned during the marriage and contributed to the marital estate.
  • Medical expenses – Generally treated as marital property if the medical bills were paid out of joint funds.
  • Pain and suffering – Often considered separate property because it compensates the individual spouse for personal physical and emotional suffering.

Are personal Injury settlements considered marital property?

The answer depends largely on the specifics of the settlement and how funds are allocated. Here’s how Carner & DeVita can help in understanding and navigating these distinctions:

  • Detailed review of settlement documents – Carner & DeVita can review the personal injury settlement agreement to determine how the funds were intended to be used and disbursed, which is critical in classifying these funds during a divorce.
  • Expert legal guidance – Their experienced attorneys can advise on how such settlements are likely to be treated in court based on current statutes and prevailing case law.
  • Negotiation and litigation support – In cases where the classification of a settlement is contested, Carner & DeVita can represent your interests, whether in negotiations or in court, to ensure that the settlement is fairly divided.

Strategic considerations

If you are going through a divorce and have a personal injury settlement, consider these steps:

  • Document use of funds – Keep detailed records of how the settlement money was used, particularly if used for marital expenses or to support the household.
  • Consult early – Engage with a legal professional from Carner & DeVita early in the process to discuss the best way to handle your personal injury settlement in the context of your divorce.

Navigate complex waters with expert help

Whether personal injury settlements are considered marital property in New York depends on the specifics of each case. With expert legal help from Carner & DeVita, you can navigate this complex area of law effectively, ensuring that your financial interests are protected during the division of marital assets.

If you’re facing this situation, it’s crucial to seek professional advice to understand fully how your personal injury settlement will be treated in the context of your divorce. Contact us online or call (631) 543-7070 to schedule a free consultation today.