QUESTION
When you are married with no divorce, is a lump sum personal injury settlement separate property or community property?
Asked on Apr 11th, 2017 on Personal Injury - California
More details to this question:
I am still married with no talks of getting a divorce. I will be getting a lump sum settlement deemed for pain and suffering but in the end, won’t be labeled anything. Just a lump sum.
1 ANSWER
Money for pain and suffering are separate property, for lost wages community property and it is also taxable as income, although I suspect most people do not report it to the IRS. Try to get a letter from your attorney as to what the settlement is for as the insurance company will not do so.
Answered on Jul 07th, 2017 at 8:32 PM