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How Divorce Affects a Personal Injury Settlement

By April 12, 2021April 22nd, 2021No Comments

If you’ve either received or are in the process of receiving a personal injury settlement, you’re certainly tuned into all of the ways that you can hold onto your funds — and also all the ways that it can be taken from you.

Suppose you’re also working through a divorce. In that case, that personal injury sum could be split, depending on the settlement’s circumstances and how you used the money within the union before the beginning of the divorce.

Marital vs. Separate Property

One of the first things to think about is if the settlement was given due to your injuries or as reimbursement for wage loss due to the injuries. If the former, then the settlement might be your separate, non-marital property and your spouse may not be entitled to it. If the latter, it may be considered marital and each party may be entitled to one-half of those funds.

Allocating Funds for Injury Recovery

Another thing to consider is the location of the funds and how the settlement money is spent. The important part of this equation is whether the funds are “traceable” or have been commingled with other funds. If you receive a settlement, commingled it with marital funds, and are using the funds for general living expenses, the money could be viewed as marital property. If the funds are kept separate from marital funds or can be clearly traced to the settlement, then it can help your argument that the settlement is separate property. In any case, it’s important to keep detailed records of the location and how you’ve spent your settlement funds.


If you’re facing divorce or a personal injury negotiation in Ohio, know that you don’t have to go it alone. The team at Garretson & Holcomb, LLC is a trusted source for Warren and Butler county clients and is ready to help you as well. Call (513) 863-6600 today to learn more.

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