[WSBAPT] Personal Injury Settlement is Separate Property

[Kristen Fisher]

The case holding that recovery for personal injury is separate property is Brown v. Brown, 100 Wn.2d 729. The time of disbursement of the settlement has no bearing, presuming that the settlement occurred before the plaintiff's death and this is not a survival claim that is being brought post-death (By survival claim, I mean a claim that is brought or settled post-death for injury that did not cause the death). In other words, if there was pre-death settlement for pre-death injury, it makes no difference if the community ended due to dissolution or death. The characterization of the settlement proceeds would be determined as of the date of the settlement.  It would only change if this was a wrongful death or survival claim, which you have indicated that it is not.

To the extent that the settlement compensates the community for lost wages or injury-related expenses, the settlement may partially be community property. The plaintiff's spouse may have had their own separate claim for loss of consortium, etc., for which the spouse was entitled to recovery.  That may be dependent on whether the spouse was a party to the settlement agreement. Generally an insurer would require that an injured party's spouse be made a party to any settlement.  This may cause apportionment issues to arise.


Kristen Fisher, Attorney
Ridgway Law Group
701 Fifth Avenue, Suite 4640
Seattle, WA  98104 - 7073
Tel: 206.838.2501
Fax 206.839.5702
email: kristen at ridgwaylawgroup.com


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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Dalynne Singleton
Sent: Monday, August 19, 2019 11:53 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Personal Injury Settlement is Separate Property

What is the authority that a personal injury settlement is the separate property of a person so that if the person dies before disbursement, the monies are their separate property?
I would acknowledge there might be an exception if some of the monies were for lost wages or for payment of a vehicle owned by the community.
The person did not die from the personal injury - it was unrelated to their death.  All discussion seems to be in case of a divorce not a death.
Is a Personal Injury Settlement Community Property?
If the money received as a personal injury settlement is deemed compensation for pain and suffering, it will not be considered community property. These funds are the property of the recipient only, since it was that individual who experienced the discomfort following the accident.  In a case where a portion of the settlement is received as compensation for physical damage to property or for lost wages, this part will be considered community property, since vehicles and income would be classified in this way.

Dalynne Singleton

Gourley Law Group
Snohomish Escrow
The Exchange Connection
1002 10th Street / PO Box 1091
Snohomish, WA 98291

360.568.5065
360.329.4079
360.568.8092  fax
dalynne at glgmail.com<mailto:dalynne at glgmail.com>

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