QUESTION
Is a personal injury settlement considered community property or separate property?
Asked on Nov 24th, 2016 on Personal Injury - California
More details to this question:
I will be receiving a personal injury settlement for pain and suffering. I want to know if it is separate property or community property.
2 ANSWERS
It should be separate property and non-taxable if it is only for pain and suffering, but any part intended to compensate for lost wages would be community property.
Answered on Jan 02nd, 2017 at 5:33 PM
This is not a community property because it's received to compensate you, the individual for your injury (physical or emotional). Therefore, it's a separate property under California law.
Answered on Jan 02nd, 2017 at 5:33 PM