Divorce & Injury Settlements in Buffalo: Will Your Ex Take Your Money?

Is Your Personal Injury Settlement Up for Grabs in a Buffalo Divorce?

Getting a personal injury settlement is a huge relief, and at Horn Wright, LLP, we know how important it is to protect what’s yours. and working with experienced personal injury attorneys can help ensure you get the compensation you deserve—until you realize your soon-to-be ex might come after it. 

If you're going through a divorce in Buffalo, you're probably wondering: Can they really take your money? The answer depends on whether your settlement counts as marital or separate property. Let's break it down.

Marital vs. Separate Property—What’s the Difference?

New York follows equitable distribution rules. Personal injury attorneys can help you understand how these rules apply to your settlement. That means everything isn’t just split down the middle. Instead, courts divide assets fairly based on different factors. But before they even get to that step, they need to decide whether your settlement is marital property (which gets divided) or separate property (which stays yours). Here’s the deal:

• Marital Property: Anything earned or acquired during the marriage, like wages, retirement accounts, real estate, and in some cases, part of a personal injury settlement.
• Separate Property: Anything you owned before the marriage, inheritances, gifts, and—most importantly—compensation for pain and suffering from an injury.

If your settlement includes pain and suffering damages, you’ll likely get to keep that portion. But if it covers lost wages or medical bills that were paid during the marriage, your ex might have a claim to part of it.

What Courts Look At When Deciding

Buffalo courts don’t just take your word for it. They look at the specifics of your settlement. Here’s what matters:

• When the settlement was awarded: If you got it during the marriage, there’s a stronger argument that part of it is marital property.
• What the money was for: Pain and suffering? Usually separate property. Lost wages or medical bills? Could be up for grabs.
• Where you kept the money: If you put the settlement in a joint account or used it for shared expenses (like paying off the house), it might be considered marital property.

Can Your Ex Really Take a Chunk of Your Settlement?

Not always—but sometimes, yes. Courts don’t just hand over half your settlement, but they do take a hard look at whether your spouse should get a portion.

When a Spouse Might Have a Claim

Your ex could have a case for part of your settlement if:

• Your injury happened during the marriage and affected household income.
• The money was used to cover shared expenses, like medical bills or rent.
• The settlement was mixed with marital funds in a joint account, making it hard to separate.

What Parts of a Settlement Can Be Split?

Some parts of your settlement are more likely to be divided than others. Here’s how it usually shakes out:

• Lost wages: If your income dropped due to the injury and your spouse relied on that money, they could argue for a share.
• Medical expenses: If joint health insurance or shared funds covered your medical bills, your ex may try to recoup their portion.
• Loss of consortium: If your injury affected your relationship, your spouse might make a claim (but this is less common).

On the other hand, pain and suffering compensation is typically off-limits. That money is meant for you, not your household.

How Buffalo Courts Decide Who Gets What

Every case is different, but one thing’s for sure: New York courts don’t just split everything 50/50. Personal injury attorneys can help you argue for your settlement to remain separate property. Instead, they use equitable distribution, which means they divide things fairly based on a range of factors.

Equitable Distribution vs. Community Property

New York is an equitable distribution state. That means judges consider things like:

• Each spouse’s financial contribution to the marriage
• The length of the marriage (longer marriages often mean more asset sharing)
• Each person’s future earning potential

Compare that to community property states, where everything is split 50/50 no matter what. Luckily, Buffalo courts take a more flexible approach.

Real-Life Examples of Settlement Division

1. John & Lisa: John got a settlement for a work injury but put the money into a joint account. Since Lisa had access and they used it for household expenses, the court ruled she was entitled to a portion.
2. Sarah & Tom: Sarah was in a car accident before the marriage but received the payout while they were married. The court determined her pain and suffering damages were separate property, so Tom didn’t get a dime.

Does the Timing of Your Injury Matter?

Absolutely. When you got hurt, when you got the settlement, and when the divorce happened can all impact what happens to your money.

What If Your Injury Happened Before Marriage?

If you were injured before you tied the knot and got the settlement before or during the marriage, it’s usually considered separate property. But if you deposited it into a joint account or used it for marital expenses, things get messy. Your ex may argue they have a claim.

What If You Get the Settlement After the Divorce?

It depends:

• If the injury happened during the marriage, your ex could still have a claim, even if you get paid afterward.
• If your divorce decree doesn’t mention potential future settlements, your ex might try to make a case.

How to Keep Your Settlement Safe from Your Ex

If you want to make sure your personal injury settlement stays yours, there are steps you can take.

Use a Prenup or Postnup

One of the best ways to lock down your settlement is with a prenuptial or postnuptial agreement. These agreements can spell out that any personal injury settlements belong solely to you, no matter what.

• Prenup: Signed before marriage, it lays out who gets what in case of divorce.
• Postnup: Signed after marriage, it can clarify that any settlement money stays separate property.

Other Smart Ways to Protect Your Money

• Keep settlement funds in a separate account: Never mix them with marital assets.
• Use the money only for personal expenses: Avoid paying off shared debts or making joint purchases.
• Document the settlement breakdown: Make sure your lawyer clearly outlines what part of the settlement is for pain and suffering versus lost wages.

Protect What’s Yours with the Right Legal Help

Divorce is stressful enough—you don’t need to lose your injury settlement on top of it. At Horn Wright, LLP, our personal injury attorneys know how Buffalo courts handle personal injury settlements in divorce cases. If you need strong legal representation, you can hire one of the best law firms in America. 

We’ll fight to make sure your money stays where it belongs—with you. Contact us today for a consultation.