Do I Have to Share Accident Injury Compensation in My Divorce?

 Posted on November 03,2023 in Complex Property Litigation

If you have suffered a serious injury due to an accident, the compensation from a personal injury claim is crucial for covering medical bills, lost income, and the emotional toll of your experience. But, facing a divorce while still dealing with the aftermath of an injury can be particularly tough. It is understandable to be worried about losing a significant portion of your compensation to your spouse during asset division. You should seek the guidance of a Texas lawyer who can help navigate the complex property litigation of your divorce case and safeguard your financial well-being.

Is Injury Compensation Considered Community Property in Texas?

If you are getting a divorce in Texas, marital assets are divided and are usually assets acquired during the marriage, while separate property was obtained before the marriage. So, if you sustained an injury and settled your claim before getting married, you are typically entitled to keep the entire compensation you received.

However, if you suffered the injury while married, determining whether your compensation is separate or community property can be trickier. You must consider the specific damages covered in your settlement or verdict. Under the Texas family code, compensation for medical expenses and pain and suffering is typically your separate property, but compensation for loss of earning capacity may be considered community property. A qualified attorney can help you distinguish the amounts allocated for each type of damage.

What is the Risk of a Joint Bank Account?

There are cases in which injury compensation, initially considered separate property, can transform into community property. If you deposit settlement funds into a joint account shared with your spouse, those funds might lose their separate identity. This could make it challenging to reclaim assets you were once entitled to. Therefore, the best thing to do is to open a separate account or trust to preserve the assets from your injury settlement or verdict.

Schedule a Consultation with a Travis County, TX Divorce Lawyer

At Powers Kerr & Rashidi, PLLC, we specialize in assisting clients dealing with intricate property disputes as they work towards a fair divorce settlement. We are here to help you safeguard as much of your injury compensation as possible, ensuring continued access to the resources you need. Reach out to us today at 512-610-6199 to consult with a knowledgeable Austin, TX complex divorce attorney.