Anyone who is considering divorce may be wondering if a personal injury settlement is community property. The answer will depend on a couple of things such as what is the money being used for and whether the settlement was separate from marital assets.
It is important to understand that there are different community property basics for each state. Contact the Community Property Division in the state that you reside.
In a community property settlement, both partners are considered to own a 50/50 interest in all material assets acquired throughout the marriage. Any property or money that was acquired before the marriage or date is typically not included in community property calculations.
When a marriage is dissolved, not every asset will be treated as community property. For example, if one member of the partnership provides a gift to the other member, then it is not considered to be community property.
Property or money received from an inheritance will also not be included in the community property calculations. However, if one partner receives some money from an inheritance and deposits the amount into a joint bank account that is jointly held by both spouses, it might be argued that these type of co-mingled marital assets should be included in the community property.
Any money received for pain and suffering from a personal injury settlement will not be part of the community property calculations. These are funds designated only to the recipient following an accident. Money that was received from an injury settlement for lost wages or damaged property can, however, be considered community property.
Community property issues are best discussed with a qualified family attorney. They will have all of the legal answers necessary for both partners in a marriage. Simply make an appointment with a reputable law firm to discuss all of your community property concerns.
If you reside in the Asheville, North Carolina area, personal injury lawyer Lakota R. Denton can assist you with all personal injury related questions. You can contact the firm at 828-333-5996 for a free consultation.
