QUESTION
Is the entire personal injury settlement community property while married or is any part of it separate property?
Asked on Apr 07th, 2017 on Personal Injury - California
More details to this question:
I was injured on the job by a third party being rear-ended by a small semi-truck on the freeway. I filed a work compensation claim due to it being on worked time and also a third party lawsuit against the truck driver. Also is the work compensation settlement community or separate property as well since they both are combined?
1 ANSWER
Compensation for wage loss is community property [if you had not been injured, you would have earned that money and both people's earnings are community property incidentally, temporary disability payments are tax free; I also believe you should be earning vacation pay and sick leave while you are off work, but I think few attorneys push on that]. ?For physical injury, it is separate property. The IRS will accept a reasonable apportionment of what is what since most settlements do not state what they really are for.
Answered on Jul 06th, 2017 at 10:38 AM