Q: Entitlement to spouse's settlement after divorce in NY

A: There is not nearly enough information here to properly respond to this question.

As a primer in equitable distribution law, marital property includes any assets that were acquired during the course of the marriage, regardless of who actually owns them. This can include things like real estate, bank accounts, retirement funds, and even personal property like cars and furniture. However, not all assets acquired during the course of the marriage are considered marital property.

In some cases, personal injury awards may be considered marital property. For example, if the injury occurred during the marriage and the award was granted during the marriage, it may be considered marital property if the award is seen as compensation for the loss suffered by both spouses due to the injury, such as loss of income or medical bills. How the asker used his share of his funds is irrelevant to whether the wife keeps her portion or not.

However, there are also cases where personal injury awards are considered separate property where the compensation is entirely personal to the spouse and has no connection to the martial estate. In these situations, the award is seen as compensation for the individual’s own personal loss, rather than a loss suffered by both spouses.

We have no idea about how the wife was injured and what her claims are. We do not know when any of these losses occurred and whether they touched upon marital property or the loss of marital property.

The asker should contact his attorney for a more cogent response to his question.

A: It depends. If your wife's case is settled after your divorce is finalized, then the settlement proceeds will be considered your wife's separate property and not marital assets. Even if the case is resolved before your divorce, under New York Domestic Relations Law § 236, if the settlement proceeds are purely for your wife's pain and suffering and not for lost earnings or diminished earning capacity, then the proceeds will be considered your wife's property and not marital assets. Of course, if you have a derivative claim for loss of consortium or loss of services, an allocation of the settlement proceeds would potentially need to be made to that claim and would be your property in a divorce. Here's something I found online which you might find helpful, https://www.nycbar.org/get-legal-help/article/family-law/property-rights/

A: It could depend on the breakdown of damages - if they consist of solely one person's pain & suffering, or they involve components that impacted both parties (such as consortium), which are addressed by my colleagues. Depending on how it is drafted, the release form at the conclusion of the case might shed light on the breakdown of damages (in terms of who the releasors are). However, it would be advisable to discuss this with your attorney in detail. Good luck

A: I understand that navigating the division of assets, including settlements, in a divorce can be complicated. In New York, property division in divorce cases is governed by the principle of equitable distribution, meaning that marital property is divided fairly, but not necessarily equally. The fact that you are considering divorce after 33 years of marriage means that many of the assets accumulated during the marriage, including settlements from personal injury claims, may be subject to division.

In New York, the key question in your case is whether your wife’s personal injury settlement is considered marital property. While settlements for personal injury claims are typically considered separate property because they are meant to compensate for personal injuries, New York law makes an exception when a portion of the settlement is used for marital expenses. If the settlement funds you received from your car accident claim were used to pay joint household expenses, that portion of the settlement may be considered marital property.

Since the settlement funds in your case were used for joint household expenses, it could be argued that those funds were commingled with marital property, and thus, subject to division. This same principle could apply to your wife’s settlement, depending on how the funds from her claim are used. If her settlement is allocated toward marital expenses or other joint interests, you may have a claim to a portion of her settlement.

It is important to note that the specific facts of your case, including how much of her settlement is considered marital property and how long you’ve been married, will play a significant role in determining whether you are entitled to part of her settlement. The fact that your marriage lasted 33 years also strengthens your argument for a fair division of assets, as long-term marriages tend to result in a more equitable split of property.

If you proceed with the divorce and your wife’s settlement is finalized during the process, it’s likely that a court will look at how the settlement is used and may decide that part of it should be divided. However, if her settlement is still being negotiated and has not been finalized, it may be treated differently depending on when the divorce is finalized and how much of the settlement is received during the divorce proceedings.

To understand your specific entitlement in this situation, you should consult with a divorce attorney who can assess the full details of your case, including the timing of the settlements and how the funds were used. An attorney can help ensure that your interests are represented in the division of assets, including your wife’s settlement.

Disclaimer: This response is for general informational purposes only and does not constitute legal advice. For personalized guidance, please consult a qualified attorney licensed in New York.