Q: Is accident settlement community property during pre-divorce in NJ?

A: I'm really sorry you're navigating this—it’s already difficult to go through a potential divorce, and adding a personal injury case to it can make things more complicated. New Jersey is an equitable distribution state, not a community property state. That means marital property is divided fairly, but not necessarily equally, during a divorce. However, not all assets are considered marital property—some are treated as separate, depending on how they were acquired.

In a personal injury settlement, compensation for your pain and suffering, emotional distress, or physical injuries is usually considered separate property, even if you're still married when you receive it. On the other hand, parts of a settlement meant to replace lost wages or pay for medical expenses might be considered marital property if the accident happened during the marriage. If your settlement offer is divided and clearly itemized—for example, distinguishing pain and suffering from economic damages—it’s easier to determine which portions might be subject to division.

It’s a good idea to keep detailed records of the settlement breakdown and how any funds are disbursed. If the funds are deposited into a joint account or used for shared expenses, it could risk being seen as marital. You deserve clarity and fairness as you move forward—taking a few thoughtful steps now can help protect what’s rightfully yours.