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How a Personal Injury Award is Divided in a Florida Divorce

Blog 2018 November How a Personal Injury Award is Divided in a Florida Divorce
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How a Personal Injury Award is Divided in a Florida Divorce

Posted By Stepniak & Park || 30-Nov-2018

Suffering an injury caused by a negligent party often results in a substantial personal injury settlement to cover medical bills, lost wages, and even pain and suffering. When an injured party is going through a divorce, the most common question that comes to mind is, “Will my award be subject to property division?”

Florida is known as an “equitable distribution” state, meaning marital (shared) assets are divided between each spouse in a fair matter, as opposed to right down the middle. Anything acquired during the course of a marriage is considered marital property.

In general, personal injury settlements are classified as separate property and not part of the marital estate in Florida. This means such awards are not subject to property division.

However, there are several exceptions to this rule, which includes the following:

  • A portion of the settlement is itemized – If the award contains a description of which amount covers an injured spouse’s lost earnings, then that compensation must be divided in a divorce. The reason why is because income earned during a marriage is marital property.
  • Personal injury compensation is commingled with other marital funds – If the money from the personal injury award is deposited into a joint account, then the money from that account is used to fund marital expenses (i.e. mortgage, car payment, utility bill, etc.), it will be difficult to figure out which portion of the money of the joint account is from the settlement.
  • A portion of the settlement is used to cover marital funds – In order to pay for ongoing medical expenses before a personal injury case is a settlement, it is not uncommon to use marital funds to cover the initial costs. When this occurs, compensation entitled to medical expenses will be considered marital property.

Determining what is marital property and separate property can be an arduous task, which is why an experienced family law attorney can provide professional help. At the Law Offices of Robert Stepniak, our Daytona Beach divorce lawyer can protect your rights and best interests through the divorce process. We will do our best to help you obtain more property and possessions once your divorce is finalized.

If you are interested in filing for divorce in Daytona Beach, contact us and schedule a free consultation today.

Categories: Divorce

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Toll Free: (877) 256-4750
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