In New York State, marital property is subject to equitable distribution upon divorce. What about personal injury awards? Are they considered marital property? The answer is, it depends!
First, it’s important to understand what is meant by “marital property.” Generally speaking, marital property includes any assets that were acquired during the course of the marriage, regardless of who actually owns them. This can include things like real estate, bank accounts, retirement funds, and even personal property like cars and furniture. However, not all assets acquired during the course of the marriage are considered marital property.
Separate property, which is typically property that was acquired before the marriage or through inheritance or gift during the marriage, is not subject to equitable distribution. This means that each spouse is entitled to keep their separate property upon divorce. So where do personal injury awards fit into all of this? In some cases, personal injury awards may be considered marital property. For example, if the injury occurred during the marriage and the award was granted during the marriage, it may be considered marital property if the award is seen as compensation for the loss suffered by both spouses due to the injury, such as loss of income or medical bills. However, there are also cases where personal injury awards are considered separate property. This is more likely to be the case if the injury occurred before the marriage or if the award was granted after the marriage but for an injury that occurred before the marriage. In these situations, the award is seen as compensation for the individual’s own personal loss, rather than a loss suffered by both spouses.
Even if a personal injury award is considered marital property, it may not necessarily be subject to a 50/50 split between the spouses. Instead, it will be subject to equitable distribution, which means that the court will consider a variety of factors to determine what is a fair and reasonable distribution of the property. This could include things like the length of the marriage, each spouse’s income and earning potential, and any other relevant factors.
So what does all of this mean for someone going through a divorce in New York? If you have received a personal injury award, it’s important to speak with a knowledgeable divorce attorney here at Mindin & Mindin, P.C. to determine whether it is likely to be considered marital property. If it is, you will want to be prepared to provide documentation and other evidence to support your position on how it should be distributed. If you are on the other side and your spouse has received a personal injury award, it’s also important to speak with an attorney to understand your rights and options. Depending on the circumstances, you may be entitled to a portion of the award, but you’ll need to be prepared to make a case for why you are entitled to it!
In conclusion, personal injury awards can be a complicated issue in New York divorce cases. While there are some general rules that apply, every case is unique and requires a careful analysis of the specific facts and circumstances involved. If you’re going through a divorce and have questions about personal injury awards or other property division issues, it’s important to work with a knowledgeable attorney who can guide you through the process and protect your rights.
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