Personal injury settlement is considered community or separate property while still married?

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Personal injury settlement is considered community or separate property while still married?

The personal injury settlement is only for pain and suffering but will be in form of a lump sum.

Asked on April 20, 2017 under Personal Injury, California

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

A personal injury settlement is to compensate for injuries, pain and suffering, loss of enjoyment, and/or medical bills that don't have an impact on the marriage. Accordingly, such a settlement is deemed to be separate property. However, a personal injury settlement can be marital property if there is in some way a commingling assets (e.g. by accepting the settlement in 1 check and it is made payable to both parties); it is compensation for lost wages; or there are medical bills that have a financial impact on the marital (here, community) estate. At this point you may want to consult directly with an attorney and once you have gone over the details of your case, they can best advise you further.


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