Is My Spouse Entitled to My Personal Injury Settlement?

If you are injured while married, and you receive a personal injury settlement during that time, you might wonder: Is my spouse entitled to my personal injury settlement?

It's not actually a "yes" or "no" answer. In reality, it depends on a number of factors, including when the injury occurred, when the settlement was received, the nature of the damages, and even the state of the marriage.

In Iowa, settlements from a personal injury case aren't automatically treated as belonging only to the injured spouse. Courts here have held that personal injury compensation can be considered marital property and divided based on the circumstances of the case.

Does this mean that your spouse is automatically entitled to half of your personal injury award? No. It means that there are considerations that must be made before determining if the settlement is shared or not. Tom Fowler Law can also asssit with questions like who gets the money in a wrongful death lawsuit?

Is a Personal Injury Settlement Considered Marital Property in Iowa?

In Iowa, courts use an "equitable distribution" approach when dividing property during a divorce. This means that the court considered the circumstances of the marriage, and then divides the community property in an equitable way.

Personal injury settlements can be included as property acquired during the marriage, and thus, it can be considered marital property if you choose to get a divorce.

In the case In re Marriage of McNerney, the Iowa Supreme Court determined that proceeds from a personal injury claim were marital assets to be divided according to the circumstances of the case.

The court didn't establish a rule that every personal injury settlement is divided equally between spouses, however. Instead, it determined that funds from settlement agreements must be evaluated on a case-by-case basis.

This is important to remember if you are concerned about whether or not your spouse can claim part of your settlement.

Does My Spouse Automatically Get Half of My Settlement?

No. Just because you are married doesn't automatically mean that your spouse would get half of your personal injury settlement. However, that also means that a settlement is typically considered separate property, either.

Iowa courts can look at the personal injury settlement when they divide marital property. The court will look at things like the settlement itself, the timing of the injury and recovery, how long the couple has been married, and other factors that might be relevant to the personal injury settlement funds.

For instance, personal injury law in Iowa might recognize that settlement proceeds that were received several years before the divorce are marital property. They will also usually treat personal injury settlements won during the divorce, or after, as the injured spouse's separate property.

That being said, however, there is something important to remember: every case is different, and what a judge decides in one case might not be the same as another. For more information, this personal injury law firm in Des Moines may be able to help.

What If the Settlement Is for My Pain and Suffering?

The type of settlement can be an important consideration in cases like this. Pain and suffering compensation might be treated differently than other types of compensation.

In Iowa, a personal injury settlement can include different types of losses, including pain, disability, medical bills, lost wages, and more.

In the McNerney case, the Iowa Supreme Court discusses an approach that distinguished between different components of the personal injury recovery.

When using that approach, it means that compensation for pain and suffering would be considered the injured spouse's separate property, but amounts that replaced income or medical expenses could be considered marital property. The court ultimately decided that they would adopt a broad, case-by-case approach instead of automatically using the same decision for every case.

Because of this, the fact that your settlement is intended to compensate you for your physical injuries does not necessarily mean that only you will get the money. Part of it could be considered to belong to the marital estate.

What If My Spouse Helped Pay My Medical Expenses?

The source of the money that was used to pay medical bills could matter when a judge is determining how a settlement is treated during a divorce.

For instance, if you were injured when you were still married, and your spouse helped you pay your medical bills, household expenses, or additional costs while you couldn't work, it could be very relevant to how the court will decide to divide your property.

Iowa courts have shown over and over again that personal injury settlements should be considered on a case by case basis instead of using an automatic formula.

This is one reason it is important to keep documentation related to your injury, medical expenses, lost income, and settlement.

What Happens to a Settlement If I Get Divorced?

If you are married when you receive a personal injury settlement and later get divorced, the settlement may become part of the property considered during the divorce. A number of factors will help courts determine what might happen to the entire settlement.

Iowa's equitable distribution system means the court does not necessarily divide every asset equally. Instead, the court considers the circumstances and determines an equitable distribution of marital property. This means that it's not 50/50.

Iowa appellate decisions have specifically addressed personal injury recoveries in divorce cases. Courts have held that settlement proceeds received during a marriage may be marital property, while certain recoveries received after a divorce is final may be treated as the separate property of the injured spouse.

The timing of your injury, settlement, and divorce can therefore be extremely important.

What If I Receive the Settlement After My Divorce?

A settlement received after a divorce is finalized may receive different treatment from money received during the marriage.

Iowa courts have held that benefits and proceeds received after a divorce is final can be considered the separate property of the injured spouse. In one case, the court noted that a former spouse did not have a right to part of a future personal injury recovery made after the dissolution.

However, the circumstances of each case still matter. If a personal injury claim existed during the divorce or was specifically addressed in the dissolution proceedings, the divorce decree may affect the parties' rights.

This is why someone who has an unresolved personal injury claim while going through a divorce should address the claim with both their family law attorney and personal injury attorney.

Can I Keep My Settlement Separate From My Spouse?

If you want to protect your settlement from becoming mixed with other marital funds, keeping careful records can be important.

Once settlement money is deposited into a joint account or combined with other marital assets, it may become more difficult to establish how the money was handled and what it was intended to compensate.

This does not mean that simply placing a settlement into a separate bank account automatically makes the money separate property under Iowa law. The classification of the settlement can involve broader considerations.

If you are married and expect to receive a significant personal injury settlement, talk with an attorney before depositing or spending the funds if you have concerns about how the money may be treated in a divorce.

What If My Spouse Claims Part of My Settlement?

If your spouse claims an interest in your personal injury settlement, do not assume that you must give up half of the money.

The appropriate division depends on the circumstances. Iowa courts have specifically recognized that personal injury settlement proceeds do not automatically belong entirely to one spouse or automatically get divided equally.

An attorney can review the settlement, the underlying injury claim, when the injury occurred, when the money was received, and other relevant circumstances to help determine how the proceeds may be treated.

If you are already involved in a divorce, it may also be important to coordinate your personal injury case with your divorce proceedings so that your interests are properly considered.

Talk to a Des Moines Personal Injury Attorney

A personal injury settlement can provide important compensation after an accident, but questions about what happens to that money during a marriage or divorce can become complicated. Is it separate or marital property? Well, it depends. Courts in Iowa usually look at each case on a case-by-case basis.

If you have received or expect to receive a personal injury settlement and are concerned about whether your spouse may have a claim to the proceeds, an attorney can explain the factors that may apply to your situation and help you determine if it might be marital or separate property. They have insight to questions like can you sue a hospital for wrongful death?

Tom Fowler Law can help you understand your legal options following a personal injury. Contact the firm to discuss your circumstances and learn more about protecting your interests while pursuing the compensation you may be entitled to receive. You can also consider speaking to a divorce lawyer about how a personal injury settlement might affect a divorce if you are considering taking that step.