Can My Spouse Claim a Portion of My Personal Injury Settlement or Award During Divorce?

Potentially, yes. In Georgia, marital property is subject to equitable division in a divorce. Certain components of a personal injury settlement may be classified as marital property, while others are considered separate property and not subject to division.

What Is Marital Property Under Georgia Law?

Marital property includes both tangible and intangible assets acquired during the marriage by either spouse. Examples include:

• Income earned during the marriage

• Real estate purchased using marital funds

• Retirement accounts accrued during the marriage

• Businesses started or grown during the marriage

These assets are generally subject to equitable (fair, not necessarily equal) division in a Georgia divorce.

What Is Considered Separate Property?

Separate property includes assets that:

• Were acquired before the marriage

• Were received as an inheritance or gift to one spouse

• Are awarded as personal, non-marital compensation (e.g., pain and suffering)

Separate property remains with the spouse who owns it and is not divided during divorce.

How Is Marital Property Divided in Georgia?

Georgia follows the rule of equitable division. This means that property is divided fairly based on the circumstances—not necessarily split 50/50. Courts may consider:

• The financial and non-financial contributions of each spouse

• The conduct of the parties during the marriage

• Each party’s economic needs and future prospects

What Types of Compensation Are Included in a Personal Injury Case?

A personal injury claim typically involves three types of damages:

1. Special (Economic) Damages

   • Medical bills

   • Lost wages

   • Property damage

   • Other financial losses

2. General (Non-Economic) Damages

   • Pain and suffering

   • Loss of enjoyment of life

   • Emotional distress

   • Loss of consortium (for the uninjured spouse)

3. Punitive Damages

   • Awarded in cases of egregious or reckless behavior to punish the at-fault party

Are Personal Injury Settlement Proceeds Considered Marital Property in Georgia?

According to Campbell v. Campbell, 255 Ga. 461 (1986), the classification of personal injury proceeds depends on the type of damages awarded:

• Personal damages, such as pain and suffering or loss of capacity, are separate property and not divided during divorce.

• Economic damages, like compensation for medical expenses and lost wages during the marriage, are marital property and subject to equitable division.

• Loss of consortium damages belong to the non-injured spouse and are not subject to division either.

This means only some portions of your personal injury compensation may be claimed by your spouse in divorce.

Why Should My Divorce and Personal Injury Attorneys Coordinate With Each Other?

Coordination is essential to ensure:

• Proper classification of settlement proceeds

• Strategic timing of settlements and filings

• Avoidance of missteps that could harm your financial or legal position in either case

For example, personal injury settlements often require signing a release form from the insurance company. These forms typically list a lump sum (e.g., $70,000) without a breakdown of what amount covers what type of damage. Without a clear allocation, the court may struggle to determine which part of the settlement is marital versus separate property.

How Can I Protect My Injury Settlement During a Divorce?

To protect your financial interests:

• Hire both a family law and a personal injury attorney if you haven’t already

• Disclose your divorce status to your injury attorney

• Ensure your settlement agreement or release form clearly itemizes damages (pain and suffering vs. lost wages, etc.)

• Consider delaying settlement until a proper breakdown of damages can be established

Conclusion: Legal Strategy Matters in Both Divorce and Injury Claims

Being injured while in the middle of a divorce adds complexity to both cases. Working with experienced attorneys in both areas—and ensuring they communicate—can help you:

• Maximize your recovery

• Minimize your financial exposure

• Protect your legal rights in both proceedings

If you are in this situation, don’t wait—schedule a consultation with attorneys experienced in personal injury and family law to get tailored guidance.