Divorce can be a painful and challenging experience, particularly when it involves the division of assets acquired during the marriage. When it comes to property obtained through a personal injury settlement, the complexity of the situation is heightened. In this article, we will delve into the intricacies of dividing property obtained through a personal injury settlement in New Hampshire divorce proceedings.
Personal Injury Settlements and Property Division
When it comes to the division of property in a divorce, it is essential to understand that only marital property is subject to division. Marital property refers to assets acquired during the marriage that are eligible for division, while separate property solely belongs to one spouse. In general, if a personal injury settlement was awarded after the marriage, it is considered marital property and subject to division.
The Marital Share of the Settlement
In New Hampshire, the marital share of a personal injury settlement is subject to equitable distribution. This means that the property is divided fairly between the spouses, though not necessarily equally.
Allocation of the Personal Injury Settlement
The allocation of a personal injury settlement depends on various factors, including the following:
1. Factors Considered in Equitable Distribution
When determining a fair division of property, the court takes several factors into consideration. These factors include the duration of the marriage, each spouse’s income, property, and earning capacity, their financial condition, the current and future costs of personal injury damages, and the contribution of each spouse to the acquisition, preservation, or appreciation of their estates. Additionally, the court considers any other relevant factor to ensure an equitable distribution.
2. Marital Property and Separate Property
If the personal injury settlement is deemed marital property, the court will equitably divide it between the spouses. This means that the settlement will be fairly apportioned, even if only one spouse was injured.
However, if the personal injury settlement is considered separate property and was awarded solely to one spouse, it will not be subject to division during the divorce proceedings.
3. Settlement Agreement
When spouses reach an agreement on how to allocate the personal injury settlement, the court typically respects their decision. However, the court will review the agreement to ensure it is fair and reasonable. As long as the agreement aligns with the principles of fairness, the court will likely approve it.
Conclusion
In summary, the division of property during a divorce, particularly when personal injury settlements are involved, can be a complex process. Seeking the counsel of an experienced divorce attorney is strongly recommended if you find yourself facing this situation. Remember that the court’s main objective is to ensure an equitable division of property, taking into account all relevant factors. With logical formatting and ease of readability, we’ve provided you with a comprehensive understanding of how property acquired through a personal injury settlement is divided in a New Hampshire divorce.