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Orange County Family Law Attorney

What Happens to an Injury Settlement When a Couple Gets Divorced?

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Have you recently been involved in extensive litigation? Are you now worried that you are facing a divorce? Has your spouse already filed? Are you planning to file for a California divorce? What happens to an injury settlement in a divorce? Is the injury settlement considered a marital asset? Will your injury settlement be included in the division of assets?

It happens all too often – as soon as an individual makes it through litigation for a personal injury case, and the settlement is on the horizon, they discover their spouse is filing for divorce. A personal injury can put a massive strain on a relationship, as can the rigors of litigation often associated with a personal injury suit. Statistics show that divorce rates increase significantly when one partner experiences a disabling injury. The divorce rates rise even more among couples whose child suffers a disabling injury.

Settlements received as a result of a personal injury lawsuit are intended to cover the plaintiff’s medical bills and costs for the rest of their life, but without proper planning, the settlement money may be considered a marital asset. During a California divorce, marital assets are divided equitably between spouses.

Can You Protect Your Settlement from Becoming Just Another Marital Asset?

If your case is about to settle and you think divorce is on the horizon, put protections in place immediately by requesting settlement planning assistance. An experienced settlement planning professional can help protect your settlement through various legal tools. Two of the most popular in this scenario are the asset protection trust and the structured settlement.

If you are worried about how your assets or injury settlement will be handled during your divorce, please get in touch with The Maggio Law Firm as soon as possible. Our experienced California divorce attorneys can assist you in planning for financial stability and security, even in the face of divorce.



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