ARE PERSONAL INJURY SETTLEMENTS COMMUNITY OR SEPARATE PROPERTY?
NRS 123.130 provides that all property acquired after marriage, except by gift, inheritance or personal injury damages are community property. Therefore, if a married person receives a settlement for a personal injury, the proceeds are generally separate property. One of the exceptions, however, is that if a portion of the personal injury proceeds represents “lost wages” during the marriage, that portion would be characterized as community property. If a married person is receiving a settlement for personal injury, the settlement should be specific as to what portion, if any, are for lost income so that any remaining portion is clearly separate property.
This information is brought to you by the experienced Las Vegas family law attorneys at Pecos Law Group.