Ask A Personal Injury Attorney: Are Settlements Considered Marital Property?
Personal Injury Lawyer in Corpus Christi: What is Community Property?
In Texas, like in many other states, marital property is subject to division in the event of a divorce. However, when it comes to personal injury settlements, the issue of whether they are considered marital property can be complex and contentious. Texas is one of a handful of states that adheres to the community property system when it comes to marital property division. In community property states, most assets and debts acquired during the marriage are considered joint property and are subject to equal division in the event of a divorce. This includes income earned, real estate purchased, and other assets acquired during the marriage.
The treatment of personal injury settlements in Texas is subject to specific rules and considerations. In general, personal injury settlements are classified as separate property rather than marital property. This means that, in most cases, the settlement money awarded to one spouse due to a personal injury claim is not subject to division during divorce proceedings. This principle is established under the Texas Family Code.
Separate Property vs. Marital Property From A Corpus Christi Personal Injury Attorney
The classification of personal injury settlements as separate property is based on the premise that these settlements are meant to compensate the injured individual for their own suffering, pain, and medical expenses. As such, they are generally not considered joint property of the spouses. However, there are some important exceptions and considerations to keep in mind:
Reimbursement for Community Expenses: If a personal injury settlement includes funds meant to reimburse the injured spouse for community property expenses, such as medical bills or lost wages, those specific amounts may be subject to division.
Commingling of Funds: If the personal injury settlement funds are mixed with marital assets, making it difficult to distinguish the separate property from the marital property, a court might treat the entire amount as marital property.
Compensation for Future Expenses: Personal injury settlements can sometimes include compensation for future medical expenses or loss of earning capacity. In such cases, a court might consider these future financial needs when making property division decisions.
Debts and Liabilities: If the injured spouse has incurred significant debts related to the injury, such as medical bills or legal fees, these may also be considered during property division proceedings.
In the state of Texas, personal injury settlements are generally considered separate property and not subject to division in divorce proceedings. However, the treatment of personal injury settlements can become more complex when specific circumstances, such as reimbursement for community expenses or commingling of funds, are involved. Your Corpus Christi personal injury lawyer can help you explore the unique factors in your case, and it's important to remember that the legal landscape can change and court decisions can vary. Consult your attorney for the most up-to-date information regarding personal injury settlements.
