Imagine this: After suffering through an unfortunate car accident in Florida, weeks–if not months–of pain, doctor appointments and missed work; finally justice has been served and you receive your personal injury settlement payment; yet just when it seems as if things can settle, another question lingers: Should my settlement pay any additional damages or will I still owe back taxes or something similar?
Does My Spouse Qualify?
At Kearney Law, we understand how confusing and emotional these situations can be. Personal injury settlements don’t just involve dollars and cents–they represent healing, justice, and protecting future financial needs. Unfortunately, when relationships and finances intersect the legal landscape becomes even more convoluted- let us simplify things so you can understand.
Personal Injury Settlements in Florida
Florida is known for being an equitable distribution state; when couples divorce, their marital assets will be divided fairly, not equally, based on various considerations, and not every asset owned is considered marital property. What role do personal injury settlements play here?
Marital vs. Non-Marital Assets
Under Florida law, assets are generally classified into two categories:
- Marital property: Things acquired during the marriage by either spouse, such as income, joint bank accounts, homes, cars, etc.
- Non-marital property: Assets owned before the marriage or received individually as a gift or inheritance.
This brings us to personal injury settlements. A personal injury settlement can fall into either category, or even both, depending on its purpose and timing.
What Part of a Personal Injury Settlement Is Marital?
Here’s where it gets nuanced. Your personal injury settlement may include different types of compensation, such as:
- Medical expenses
- Lost wages
- Pain and suffering
- Loss of future earning capacity
- Punitive damages
Now let’s look at how each of these might be treated in a divorce or in relation to your spouse:
Medical expenses & lost wages (during marriage):
If either your partner helped pay medical expenses or you experienced income losses during marriage, these items might qualify as marital property as they impacted both financially during that relationship.
Pain and Suffering (Personal to You):
These funds should be considered non-marital property as they’re intended solely to compensate the person experiencing physical and/or emotional trauma, not the marriage as such.
Future Loss Of Earning Capacity:
If the injury will prevent your future ability to work after divorce is final, courts might view this as non-marital. But if it affects financial well-being during marriage and requires compensation by one spouse alone, some courts may allocate some portion.
Punitive Damages:
Punitive damages, intended to punish those responsible, often fall within your personal jurisdiction and typically fall into non-marital category.
When Did You Receive the Settlement Amount?
Timing is important.
If your personal injury settlement was obtained prior to marriage and stored separately in an account, then most likely it should not count towards marital assets. But if it came during your marriage or you combined funds (i.e, using it in joint accounts or purchasing shared homes with it), your spouse could claim some portion of it as marital funds.
What If You’re Not Divorcing?
Even if divorce isn’t in your plans, these questions often surface during estate planning, major purchases and budget discussions. Furthermore, if you receive an unexpectedly large personal injury settlement payout as an individual and are married simultaneously, then boundaries need to be kept clear, financially speaking between both of you.
Common Misconceptions
Let’s disprove some myths we often encounter:
“Just because we are married doesn’t mean my spouse automatically owns half.”
Not necessarily. Florida’s equitable distribution laws don’t mandate an equal division of assets between spouses. For example, personal injury settlements often contain nonmarital components that belong solely to one party involved in an incident.
“Just because my name is on the check doesn’t mean it all belongs to me.”
Not necessarily true. If your settlement includes money to cover joint expenses or lost income during your marriage, they might also have some claim on it–even though the check may have been written directly in your name.
“Let’s just claim this is all for pain and suffering.”
Ziced the defendant in court. But courts look beyond labels; evidence may point towards different components (i.e., medical costs vs. pain and suffering) of any settlement agreement and help the judge make their determination on the fairness of the division based on the reasonableness of treatment for each one.
Protecting Your Settlement: Strategies You Can Employ
There are a few smart steps you can take to safeguard your personal injury settlement:
1. Keep It Separate
By not mixing settlement funds into joint accounts, you preserve its status as non-marital.
2. Have Your Lawyer Break It Down.
Ensure your settlement agreement outlines clearly who each portion is for, making it easier for later arguments that certain parts should belong exclusively to you.
3. Consider Entering Into A Postnuptial Agreement.
Yes, postnups exist–and are legal in Florida. If you want to protect your settlement after marrying, consulting an attorney and creating an outline in writing of its provisions could provide the protection that’s needed.
4. Speak With A Family Law Attorney.
Considering divorce? Legal advice tailored specifically for your situation may make an invaluable difference when negotiating a settlement and creating the final documents of dissolution of marriage.
Why It Matters
Your situation has likely been distressful; an injury settlement shouldn’t be seen as just another lottery win but rather as compensation for an experience no one should endure. Your settlement should provide security and peace of mind as you look towards moving on with life after experiencing trauma.
Conclusion
So is your spouse entitled to my personal injury settlement in Florida? It depends; certain parts may constitute marital property if they cover joint expenses or were co-mingled, while compensation for pain and suffering might belong solely to you. An effective way to gain clarity? Seek advice from an attorney with expertise in both personal injury and family law.
Contact Us Today!
Contact Kearney Law today and arrange your free consultation! We are here to stand with you, help make sense of the settlement agreement, and ensure the future remains protected.
