Is a Personal Injury Settlement Marital Property in a Florida Divorce?
If you are going through a divorce (or considering one) and you received a personal injury settlement during your marriage, it is normal to wonder: Does my spouse get part of this?
In Florida, property division in divorce is handled through “equitable distribution.” As a starting point, the court sets aside each spouse’s nonmarital assets and liabilities, and begins with the premise that marital assets and liabilities should be divided equally unless an unequal division is justified by the statutory factors.
Florida law also creates an important presumption: assets acquired and liabilities incurred by either spouse after the date of marriage are presumed to be marital unless proven otherwise.
So where does that leave personal injury settlements?
Why personal injury settlements are different
A personal injury settlement is not always “one thing.” It can be a mix of compensation types, and that mix matters in divorce.
In a Florida personal injury claim, damages generally fall into two buckets:
- Economic damages: money tied to measurable financial losses, such as past and future medical bills and past and future lost income.
- Non-economic damages: money tied to human losses, such as pain and suffering, emotional distress, loss of enjoyment of life, disability, and disfigurement.
Because settlements can include multiple categories of damages, the divorce question is often not “Is the settlement marital?” but “Which parts of it are marital, and which parts are not?”
The general framework Florida courts use in divorce
Florida’s equitable distribution statute defines “marital assets and liabilities” broadly, including “assets acquired and liabilities incurred during the marriage” by either spouse or jointly.
That definition and the presumption in the statute are why the purpose of the settlement matters. In many divorces, the argument looks like this:
1) Compensation tied to the marriage can be treated as marital
If a portion of a settlement is meant to reimburse medical bills paid during the marriage or replace lost wages during the marriage, that part is often treated as part of the marital economic picture because it relates to expenses incurred and income that would have supported the household during the marriage.
2) Compensation tied to personal, individual loss can be treated as nonmarital
On the other hand, compensation for pain and suffering and similar non-economic damages is frequently argued to be personal to the injured spouse and may be treated as nonmarital, depending on how the settlement is structured and proven.
Important note: Florida’s statute lays out the equitable distribution framework and presumptions, but the way a specific settlement is classified depends heavily on facts, documentation, and how the settlement is presented to the court. Florida judges must make findings that identify marital and nonmarital assets and explain the distribution. This is why outcomes can vary.
What usually determines how your settlement is treated
Here are the real-world details that tend to make or break this issue in a divorce:
How the settlement agreement is written
If the settlement documents or release specifically allocate amounts to categories (medical expenses, wage loss, pain and suffering), it is often easier to argue which portions are marital versus nonmarital. If the settlement is a lump sum with no breakdown, the classification fight can get harder.
When the losses occurred
Timing matters. For example, “lost wages” during the marriage raises different issues than loss of earning capacity after the divorce filing. Florida also has a statutory “cut-off date” concept for identifying and classifying marital assets, typically tied to a separation agreement or the filing date.
Whether the funds were kept separate or mixed
Even if part of a settlement is arguably nonmarital, commingling can create disputes. If settlement proceeds were deposited into a joint account and used for marital expenses, it can become harder to “trace” what remained separate.
Whether you can prove the character of the funds
Because Florida presumes assets acquired during the marriage are marital unless proven otherwise, documentation is critical. Courts are not guessing. They are weighing evidence.
Practical steps if you received (or expect) a settlement
If you are still in the personal injury case stage or you have not finalized your divorce, a few proactive steps can prevent headaches later:
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- Keep every document
Settlement statements, releases, demand packages, medical billing summaries, wage loss documentation, and any correspondence showing what was claimed and why. - Ask about a clear allocation
If appropriate for your personal injury case, a settlement breakdown can be helpful later in family court.
- Keep every document
- Avoid mixing settlement funds with marital funds
Commingling can create unnecessary disputes and can complicate tracing. - Do not assume “it’s mine” or “we split it”
Personal injury settlements are often mixed-character. Treat it like a category-by-category analysis, not a yes-or-no question.
Bottom line
Florida’s equitable distribution law starts with the presumption that marital assets should be divided equally and that assets acquired after the marriage are marital unless proven otherwise. Because personal injury settlements can include multiple types of compensation, the classification often depends on what the settlement money is intended to replace or compensate, and how well you can prove it.
If you have questions about a specific settlement and how it may be treated in your divorce, McNary Law can help you evaluate the facts, review the settlement documents, and build a strategy for protecting what matters most. Many of our services can be handled remotely, and we serve Hillsborough, Manatee, Pinellas, and Sarasota counties.