Personal Injuries & Family Law: Can I Keep my Personal Injuries Award or Will my ex get Half?

What is property in Family Law?

Property is broadly defined in Family Law proceedings and includes all legal and equitable rights of the parties. 

When the Courts work out a property settlement between you and your ex-partner, they work out what the property pool is, what contributions each party made to the overall property, what needs or circumstances may affect either or both of the parties and whether the division of property is fair to both parties.

Personal Injuries in Family Law

Is a personal injury award property? YES

Is the right to receive a personal injury award property? NO

If you check the Family Law Act 1975 (Cth) (“the Act”) s4 definitions, a personal injury award will fit within the definition of property.

However, if you haven’t received payment, then your right to sue for the award for personal injuries legally cannot be assigned. This right therefore is not property as defined by the Act.

What do the Family Law Courts do with your Personal Injuries Award?

If you have received the payment then it will become part of the property pool that is to be divided between you and your ex at settlement.

However, if it has not been awarded then the right to the award will be considered a financial contribution and the percentage division of the property will be adjusted accordingly. 

If you have a disability which affects your capacity to work and earn an income, the settlement may be further adjusted to allow for any specific needs you may have.

How can we help?

It is important to look at the totality of the financial relationship of you and your ex-partner. You may feel it is unfair that the Courts will take money that has been awarded to you because of an injury to compensate for your suffering and/or your inability to work.

You need to get the right legal advice so that you can present your case to the Courts for a just outcome. The Court has a discretion when determining what is fair. You need to demonstrate what your contributions were to the relationship, whether financial or non-financial, your current circumstances and your needs in the long-term.

If you have received a personal injuries award and are experiencing the breakdown of your relationship, please do not hesitate to contact us so that we can help you work out a resolution of your financial situation.

Articles on our blog are for your information only and do not constitute official legal advice.