Personal Injury Damages in a divorce

In California, community property laws play a significant role in determining how assets, debts, and other financial matters are divided during a divorce or legal separation. Family law attorneys in the Bay Area often explain to their clients that California is a community property state, meaning most assets and debts acquired during the marriage are considered equally owned by both spouses. However, exceptions and nuances exist, especially when it comes to unique categories like personal injury damages, separate property claims, or cases involving domestic violence. Understanding these laws is essential for making informed decisions during a family law case, and skilled attorneys can help navigate these complexities to protect their clients’ interests.

Community Property Presumption: Money or property received as compensation for personal injuries is generally considered community property if the cause of action arose during the marriage. This means both spouses have an interest in the funds, even if only one spouse was injured.

Separate Property: If the cause of action for personal injury damages arose:

• After a judgment of legal separation or dissolution, or

• While the injured spouse was living separate from the other spouse, then the damages are considered the separate property of the injured spouse.

Reimbursement and Indemnity

Spouse’s Right to Reimbursement: Even if the personal injury damages are the injured spouse’s separate property, the other spouse is entitled to reimbursement from those funds if they paid expenses related to the injury from their separate property or community property.

Liability of Tortfeasor Spouse: If one spouse caused the other’s injury, the community property cannot be used to cover the tortfeasor spouse’s liability until their non-exempt separate property is exhausted. This protects the injured spouse’s financial interests.

• However, the injured spouse can consent in writing to using community property to discharge the liability.

• This provision doesn’t affect any indemnity rights from insurance or other contracts.

Specific Situations

Attempted Murder or Solicitation to Murder: If one spouse is convicted of attempting to murder or soliciting the murder of the other spouse, the injured spouse is entitled to:

• 100% of their community property interest in their retirement and pension benefits, and

• A prohibition on any spousal support or insurance benefits being paid to the convicted spouse.

Domestic Violence: In cases of domestic violence resulting in a civil judgment for damages, the court can enforce that judgment against the abusive spouse’s share of community property during divorce or legal separation proceedings.

Division of Community Estate Personal Injury Damages: When dividing community property in a divorce, the court will generally assign personal injury damages to the injured spouse. However, the court can make a different allocation if the interests of justice require it, considering factors like:

• The economic condition and needs of each spouse

• The time elapsed since receiving the damages

• Other relevant facts of the case

Even in these cases, at least half the damages must go to the injured spouse.