Is a Personal Injury Settlement Marital Property in Georgia?

In Georgia, personal injury settlements can be both marital and separate property, depending on the specifics of the compensation received. Understanding this distinction is important, even if you’re not contemplating divorce.

What is Considered Marital Property?

Marital property typically includes assets acquired during the marriage, such as income and property purchased together. Conversely, property brought into the marriage, gifts, and inheritances are generally viewed as separate property.

How Does Georgia Divide Personal Injury Settlements?

Georgia courts use “equitable division” to separate personal injury settlements. Equitable division means dividing the settlement fairly based on the nature of the compensation. Compensation for medical expenses and lost wages incurred during the marriage is usually considered marital property.

What Parts of a Personal Injury Settlement are Considered Separate Property?

Georgia law classifies compensation for future medical expenses, future lost wages, and pain and suffering as separate property. The Georgia Supreme Court emphasizes that compensation for pain and suffering and loss of capacity is uniquely personal to the injured individual, so it’s not shared marital property.

What Should I Do if I’m Negotiating a Personal Injury Settlement and a Divorce?

If you’re negotiating a personal injury settlement while going through a divorce, ensure your divorce agreement clearly specifies what portions of the settlement represent different types of damages. Additionally, spouses can agree in writing whether parts of a settlement are marital or separate property.

How Do I Know if My Personal Injury Settlement is Marital or Separate?

If you have already accepted a settlement, determining marital versus separate property largely depends on the language of the settlement and the purpose of the compensation. Clearly outlining this distinction in your settlement documentation is crucial.