Generally speaking, personal injury settlements in Florida are not considered marital property and therefore a spouse is not entitled to it. But there are exceptions to this rule, which are discussed below.
Marital Property vs. Separate Property in the State of Florida
Certain assets are considered marital property and others separate. It’s important to know the differences.
What’s Considered Marital Property in Florida?
In Florida, assets acquired by either spouse or both during marriage are considered marital property. According to Florida Statute 61.075, those assets are split equitably during divorce.
What’s Considered Separate Property in Florida?
Property either spouse obtained before marriage is considered separate. This includes inheritances and gifts given to one person and income either party earns from non-marital property.
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What Is a Personal Injury Settlement in Florida?
A personal injury settlement is compensation for damages a person suffered in an accident caused by another’s negligence.
Determining Entitlement to Personal Injury Settlement in Florida?
If a person is injured due to another’s negligence in Florida, they’re entitled to a personal injury settlement. This is to ensure they’re compensated for their damages.
Factors That Determine if a Spouse Is Entitled to a Personal Injury Settlement in Florida
Different factors determine whether a spouse is entitled to a personal injury settlement in Florida. They include using marital funds for medical expenses, contribution of the non-injured spouse to the injured party’s recovery and personal injury award as marital assets.
Marital Funds Used for Medical Expenses
Marital funds might pay for an injured party’s medical expenses. This entitles their spouse to their personal injury settlement in divorce.
Contribution of the Non-Injured Spouse to the Injured Party’s Recovery
A person is entitled to their spouse’s personal injury settlement if they contributed to their recovery. For example, a prolonged professional leave of absence to help nurse a spouse back to health would warrant getting a portion. According to Florida Statute 61.075, a significant contribution to the marriage is something courts consider when dividing assets.
Personal Injury Award as Marital Asset
Lost wages and earning capacity are marital assets in personal injury settlements. This would be divided in a divorce.
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Division of Marital Estate in Florida
During a divorce, the marital estate is divided equally among the spouses. However, there are exceptions to the rule.
Exceptions to the Rule in Florida
According to Florida Statute 61.075, exceptions to the rule apply in divorce for property division. They include financial and other contributions to the marriage, length and duration of the marriage, whether one party stopped working to help their spouse, one spouse owning a business before the marriage, contributions to the household and wanting to retain the marital home to continue raising minor children.
How Personal Injury Settlements Impact the Division of Marital Assets in Florida
Due to equitable distribution laws, personal injury settlements impact the division of marital assets in a Florida divorce. Comparing community property and equitable distribution states helps clarify this.
Equitable Distribution in Florida
Florida follows equitable distribution laws for divorce. This means all property is equally distributed among spouses unless unfair to one. In the latter situation, a judge determines fair asset division.
Community Property States vs. Equitable Distribution States
Community property states require all property acquired during marriage to be divided equally in divorce. Equitable distribution states divide marital property fairly during divorce.
Protecting Your Personal Injury Settlement in Florida
Keeping settlement funds separate, prenuptial or postnuptial agreements or trust funds or structured settlements can protect Florida personal injury settlements.
Keeping Settlement Funds Separate
You can keep settlement funds separate from your marital assets by opening an account and not using marital funds to pay for damages.
Prenuptial or Postnuptial Agreements in Florida
A prenuptial agreement is created before marriage to keep property separate in divorce, including settlements in your name. A postnuptial agreement is made during marriage and outlines how assets are divided in divorce.
Trust Funds or Structured Settlements in Florida
Trust funds cannot be touched and preserve funds. Structured settlements are paid over a set time. These options can protect personal injury settlements.
Frequently Asked Questions
Are Personal Injury Settlements Marital Property in Florida?
Personal injury settlements are marital property in Florida in certain circumstances.
How Are Personal Injury Settlements Paid Out in Florida?
Personal injury settlements are paid out in a lump sum or structured settlements.
What Are Spousal Rights in Florida?
A spouse is entitled to equitable division of assets if they divorce in Florida.
What Is Not Considered Marital Property in Florida?
Anything acquired before marriage or separately as a gift or inheritance is not marital property.
Is a Spouse Entitled to Any Part of a Lawsuit Settlement?
A spouse is not entitled to any part of a lawsuit settlement unless marital funds were paid out-of-pocket toward damages.
Need free legal help in Florida?
We specialize in personal injury claims.
