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How are Personal Injury payments treated in Family law property settlements?

In our family law property settlement blog posted in July we discussed division of assets, you can read that blog here.

In this blog we explore how Personal Injury lump sum payments are treated in Family Law property settlements.

The treatment of a Personal Injury payout in family law property matters can be a complex process.

A Personal Injury payout is categorised as “property” once it is received or a “financial resource” if the payout is not yet received.

A Personal Injury payout may include a “pain and suffering” component and/or a “loss of income” component.

It is crucial to assess whether the injured party’s health and earning capacity into the future is significantly compromised due to the injury.

Other important considerations include the timing of the contributions, the timing of the receipt of the damages and how the payout has been used, for example whether the Personal Injury payment has been used to acquire an asset for the benefit of both parties.

An assessment is also required on whether any component of the Personal Injury payout can be attributed to the non-injured spouse, for example in their role as a carer of the injured spouse.

Each case is unique and it important to get legal advice from an experienced family law solicitor in relation to your individual circumstances.

Contact our experienced family law solicitor Veronica Haccou to discuss your family law matter and find out about your rights and entitlements.

If you have been injured at work or involved in a motor vehicle accident, our experienced personal injury solicitors will be able to assist you. Contact our Personal Injury department for an obligation-free advice.

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