Advertise
Resources
Member, Beacon International Group, Ltd.
Just like the house, the car, and bank accounts get divvyed-up in a divorce, so must a lump-sum workers compensation settlement.
That's what New Hampshire's Supreme Court recently found in the case of a mechanic who filed to end his marriage just one day after receiving a $240,000 work-comp settlement.
A trial court earlier ruled that the lump sum award is property subject to
“equitable distribution,” under New Hampshire law.
The trial court based its decision on several factors including the marriage's 40-year duration, the wife's need to work flexible hours to care for their adult daughter with special needs, the fact that the mechanic receives social security income while the spouse doesn't, and the fact that the mechanic owns his home while his ex rents hers.
On appeal, the mechanic made several arguments including claiming that workers comp benefits are not actually property, but income which should not be subject to distribution.
But the appeals court upheld the trial court's ruling and found a timing issue at play.
“It was the legislature's intent that any property acquired up to the date of a decree of legal separation or divorce would be subject to equitable distribution, regardless of
whether the property belongs to only one or to both spouses,” the appeals court said.
The ruling is available here.