In a recent decision, the Arizona Supreme Court has determined the fate of a personal injury settlement in a divorce case. The court ruled that a couple’s $4.2 million settlement agreement with a pacemaker manufacturer does not constitute a post-nuptial agreement. As such, the majority of the sum will be treated as community property, per a report from Law.com.
Justice William G. Montgomery penned the court’s written opinion, stating, “No party argues that the agreement is not a valid contract… But the contract is between husband and wife as a couple and the settling defendants in a personal injury lawsuit. Nowhere does the agreement state that husband and wife have agreed to distribute their property between each other in a particular way.”
The ruling underscores the complexity surrounding the division of assets in divorce proceedings, particularly when personal injury settlements are part of the marital estate. Legal professionals handling such cases should understand these nuances to ensure an equitable distribution of property.