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HOW ARE PERSONAL INJURY SETTLEMENTS DISTRIBUTED IN A FLORIDA DIVORCE?
In a division of property and assets case captioned Roth v. Roth the Wife appealed the Final Judgment of divorce. The parties were married for twenty-nine years. At the time of the hearing, the Wife was fifty-eight and the Husband was seventy-four. Both of the parties worked in the automotive industry. The Husband was the primary income earner during the marriage. The Wife was a stay-at-home parent after the parties’ son was born, and returned to the workforce when their son was in high school.
During the marriage, the Husband was in a car accident and suffered injuries. The Husband and Wife filed suit and recovered $28,154.64. The Wife withdrew approximately $13,000.00 of the settlement proceeds the day before she left the parties’ marital home. The Wife testified that she used these funds to pay for her attorney’s fees and her living expenses. The Husband testified that he needed to use these funds to have an operation for an injury to his neck, because he could not afford it otherwise.
The Florida Court of Appeal ruled that in a personal injury case, a damage award is distributed in the following manner. First, payments for pain and suffering, disability, loss of consortium, and loss of ability to lead a normal life are considered to be nonmarital property. Payments for these loses belonged exclusively to the Husband. Second, economic damages which will occur subsequent to the termination of the marriage, including lost future wages and future medical expenses are considered to be nonmarital and belong exclusively to the Husband.
Third, payments for lost earning capacity and lost wages that accrued during the marriage, and medical expenses that were paid from marital funds during the marriage are considered to be marital assets and marital liabilities. These belonged to both of the parties and were part of the division of property and assets in this case.
Fourth, when there are personal injury funds for which no allocation is made, these funds are classified as marital.
To speak with a Palm Beach Gardens divorce attorney, contact the Lane Law Firm, P.A. at (561) 363-3400.
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