The division of assets in a divorce can be a complex process, especially when it involves unique assets like personal injury settlements. In Texas, the characterization and division of these funds can often be a source of confusion and contention. At Rose Sanders Family Law Firm, attorneys Erica Rose and Charles Sanders strive to clarify these issues and provide knowledgeable representation for clients navigating this challenging terrain.
In Texas, a community property state, all assets acquired during the marriage are typically considered marital property and are subject to division upon divorce. However, personal injury settlements can sometimes straddle the line between community and separate property, making their division less straightforward.
The characterization and division of personal injury settlements depend largely on the purpose of the award:
- Compensation for Economic Damages: If the settlement was intended to compensate for lost wages or medical expenses incurred during the marriage, it’s generally considered community property and is subject to division.
- Compensation for Non-Economic Damages: Funds awarded for pain and suffering, disfigurement, or loss of consortium typically are considered the injured party’s separate property and are not divided upon divorce.
- Compensation for Future Damages: Settlements intended to cover future medical expenses or lost earnings may also be considered separate property, as they’re designed to support the injured party post-divorce.
Given the complexities of characterizing and dividing personal injury settlements, it’s essential to have knowledgeable legal representation. The expert team at Rose Sanders Family Law Firm provides comprehensive legal guidance and dedicated representation to protect your interests.
Attorneys Erica Rose and Charles Sanders bring their deep understanding of Texas family law and their commitment to client-focused representation to help navigate the complexities of asset division, including the division of personal injury settlements. They work to ensure a fair outcome that respects your rights and safeguards your financial future.
If you’re going through a divorce and have concerns about how your personal injury settlement will be divided, don’t hesitate to reach out to Rose Sanders Family Law Firm at (713) 221-3773. Our commitment is to provide clear, effective legal counsel to guide you through this challenging journey.