Will Your Injury Settlement Survive a Garden City Divorce?

Divorce is stressful. A personal injury settlement can make it even more complicated, and without the right personal injury attorney, you could risk losing part of it. Throw a personal injury settlement into the mix, and things get even more complicated. You’re probably wondering: Do I get to keep my settlement, or does my ex have a claim to it? Let’s break it down so you know exactly where you stand.

Divorcing in Garden City? Here’s How Judges Decide Who Gets Your Money

New York doesn’t split assets 50/50 in a divorce. A personal injury attorney at Horn Wright, LLP, can help you understand how your settlement fits into equitable distribution and what steps you should take to protect it. Instead, judges divide property based on what's fair—also known as equitable distribution. That doesn’t always mean equal. The good news? Personal injury settlements are usually considered separate property. But not always.

State-Specific Approaches to Settlement Division

New York courts look at when and how you got your injury settlement. Most of the time, compensation for pain and suffering or future medical bills is yours alone. But if part of your settlement covers lost wages or medical expenses paid with marital funds, your spouse might have a claim for that portion. It all comes down to how the settlement money was classified and used.

When Courts Award a Portion to a Spouse

If you used your settlement money to pay joint bills, cover your mortgage, or deposit it into a shared account, a judge might say your spouse has a right to some of it. If your spouse played a big role in your recovery—driving you to doctor’s appointments, managing household responsibilities—they might argue they should get a cut. Courts don’t always agree, but these factors can make a difference.

Can Your Ex Take Your Settlement? The Answer Might Surprise You

Divorce courts won’t automatically split your settlement, but working with a Garden City attorney can help ensure your settlement remains protected. how you handled the money during your marriage matters. Did you keep it separate, or did it get mixed with marital funds? That’s the big question.

The Role of Financial Intermingling

If you deposited your settlement into a joint bank account, used it to pay off shared debts, or spent it on big purchases—your ex could claim a portion. Even if the original settlement was yours alone, commingling funds makes things murky. Judges might see the money as part of your shared marital assets.

What Happens If Funds Were Used for Marital Expenses

Let’s say you put some of your settlement toward home renovations, vacations, or everyday expenses. If your spouse benefited financially, they might have a valid claim. Courts could decide that once you used that money for marital expenses, it lost its separate status. The key takeaway? Where your settlement money goes matters.

Is Your Injury Settlement Considered Marital Property in New York?

Whether your ex has a claim to your settlement depends on the type of damages and how they’re classified.

Breakdown of Damages and Their Classification

Not all settlement money is treated the same way. Here’s how courts typically classify it:

• Pain and Suffering – Usually separate property. This money compensates you for what you went through.
• Lost Wages – Can be marital property if the lost income occurred during the marriage.
• Medical Expenses – If you paid out-of-pocket with shared funds, courts might consider the reimbursement of marital property.
• Future Earnings – If your injury affects your long-term income, the portion covering future lost wages might be up for debate.

Legal Interpretations of Settlement Funds

Courts look at how you received the settlement and what you did with it. If you never mixed the funds with marital assets and kept clear records, it’s easier to argue that the settlement is yours. But if your ex contributed to your medical costs or supported you through recovery, things can get complicated fast.

Did the Injury Happen Before or After Marriage? The Timeline Could Cost You

When you got injured matters just as much as what your settlement covers.

How Timing Affects Legal Rights to the Settlement

• Injury Before Marriage – If you got hurt before tying the knot and received the settlement later, it’s usually separate property.
• Injury During Marriage – If the injury happened while you were married, courts look at what the money covers and how you handled it.
• Settlement Received After Divorce Filed – Even if you’re already separated, if the settlement is tied to lost wages or medical costs during the marriage, your ex might still have a claim.

Precedents That Impact Distribution

New York courts have ruled differently depending on the situation. One key case, Riechers v. Riechers (1999), showed that once separate property is mixed with joint funds, it’s fair game for division. If you’re worried about protecting your settlement, keeping it separate is your best defense.

How to Fight to Keep Your Settlement in a Garden City Divorce

If you want to make sure your settlement stays yours, you’ll need to take some smart legal steps.

Proactive Legal Steps

• Work with a divorce attorney – An experienced Garden City personal injury lawyer can help you prove your settlement is separate property.
• Gather documentation – Keep records of where the money came from, where it went, and how it was used.
• Consider a prenuptial or postnuptial agreement – If you’re not divorced yet but want to protect future settlements, an agreement can help.

Keeping Settlement Funds Legally Separate

Want to make sure your ex can’t touch your settlement? Follow these steps:

• Deposit the funds in a separate account – Keeping your settlement in your name alone makes it easier to prove it is separate property.
• Don’t mix it with marital money – Avoid using it to pay shared expenses or putting it in a joint account.
• Track every dollar – Keep a paper trail that shows exactly how the money was used.

Your Settlement. Your Future. Your Fight.

Divorce is brutal. Money battles make it worse. And when your personal injury settlement is on the line, you can’t afford to make a mistake. Courts don’t just split everything down the middle, but if you’re not careful, your ex could walk away with a piece of what’s rightfully yours. Don’t let that happen. Know your rights. Protect your settlement. Fight for what’s yours—before it’s too late.

At Horn Wright, LLP, we know how much is on the line when it comes to hire one of the best law firms in America. Our experienced divorce attorneys are here to help fight for what’s yours, your financial future. 

We’ll walk you through every step, protect your assets, and make sure you get the best outcome possible. Ready to take the next step? Let’s talk.