The United States Government Accountability Office’s Special Report to the Senate showed that a woman’s household income drops by an average of 41% after she gets divorced. A divorced man only loses half as much money as a married man.
Some people might not know about it but divorce can have an impact on workers’ compensation benefits. Courts may treat certain injury awards and divorce settlements as marital property, depending on state law and other details of your case.
Let’s examine the other consequences of divorce in terms of a person’s workers’ compensation benefits.
What Are Workers’ Compensation Benefits?
Injured or sick workers under the workers’ compensation benefits system receive essential monetary assistance. They do not have to worry about medical bills, wage loss, and rehabilitation costs, enabling them to recover from their illnesses or injuries without the financial burden of being stressed out.
According to Shelby workers’ compensation attorney Bobby L. Bollinger, being hurt while on the job is one of the eligibility requirements for workers’ compensation. You could have been injured in one accident or from repeated exposure to hazardous conditions.
If the worker is unable to return to the same company, workers’ compensation can arrange for vocational retraining. On rare occasions, the employee could be offered a one-time payment for total and permanent disability.
Be familiar with the limitations of your claims and the kinds of benefits available to you, as they can vary from one state to another or even among different companies. The same goes for making a claim or handling the process. If you have any doubts, feel free to ask for assistance.
How Does Divorce Affect Asset Division?
Divorce results in an intricate bargaining process during property division. Proper classification of assets is important.
Marital property is usually divided among the involved parties, while separate property is usually retained by its owner. The length of the marriage, the spouses’ economic situation, and each spouse’s contribution to the household can determine the outcome of the division.
Being emotionally attached to certain things or properties can complicate asset division. Always maintain organized documentation of your assets and properties. Assistance from a lawyer can provide you with even greater confidence that you are aware of your rights, that you can take measures to secure your interests without any trouble, and that those actions can be done even through the complex legal process.
How Workers’ Compensation Is Treated in Divorce
Oftentimes, couples who undergo divorce don’t know how to handle workers’ comp benefits. In the vast majority of cases, the benefits are considered marital assets, which means they might be divided. If you got a lump sum settlement for your workers’ compensation claim, you really need to figure out whether it has been classified as marital property or not.
The courts investigate the timing of the injury and the awarding of the benefits. In case the injury took place during the marriage, then the husband or the wife would be entitled to share in the benefits. Keep in mind that the specific regulations will depend on each individual state. A legal expert could help you understand your rights and obligations in connection with workers’ compensation by clarifying things for you.
How Alimony and Child Support Affect Workers’ Compensation Benefits
The worker’s comp benefits paid out will be classified as regular income. Consequently, these benefits will be considered one of the factors contributing to the total financial settlement during divorce litigation. In case you are getting worker’s compensation, your previous spouse might claim that it should be accounted for when determining your capacity to pay alimony or child support.
In cases where support obligations are imposed, one of the very few income sources that can be taken into account for computing those payments might be workers’ compensation benefits. The reason is that these benefits are lower than standard wages and are meant to substitute just a part of the lost income. Support orders grounded on them can financially strain a person. It would be really advisable to consult legal counsel and financial professionals who are able to explain the implications of these benefits on support calculations and the possible options available.
Reporting Workers’ Compensation During Divorce Proceedings
Gaining knowledge of the procedure for reporting your workers’ compensation gains during divorce litigation is necessary to get your finances arranged in a fair manner. First, assemble all the necessary documents regarding your benefits, which may include claim forms and payment records. It is advisable to reveal these benefits not only to your attorney but also in the court hearing. Concealment or erroneous reporting of your benefits might develop into legal issues.
Specify the manner in which your benefits could influence the calculations of alimony and child support. Your workers’ compensation might be treated as a source of income, which will also be reflected in your financial liabilities.
Discuss how continuing medical treatment or rehabilitation will affect your finances. Your records and constant communication with your lawyer are important throughout this process.
State Laws on Workers’ Compensation and Divorce
There are major differences between the state laws concerning the treatment of the workers’ compensation benefits during the divorce. In some states, benefits are marital property and divided between spouses, whereas they are classified as separate property in other states.
Some places might differentiate between current benefits and a one-time settlement. In case of a settlement, it might be subject to division, whereas future benefits can be yours only.
The marriage dissolution process and your finances can both be handled effectively if you have detailed knowledge of the law. If you are confused, a lawyer must be consulted for a precise direction in your case.
Protecting Your Workers’ Compensation Rights During Divorce
You could take several measures to safeguard your workers’ compensation rights when undergoing divorce. Prepare in detail the injury you suffered and all the medical treatments related to it. These records will be the most important evidence if there are disputes regarding the benefits payment. Understand how the divorce settlement would impact the benefits one receives.
Worker compensation is classified as a shared asset. Financial advisors or lawyers may be needed for a thorough understanding of the matter. Knowing the legal and customary practices about work accidents, compensation, and divorce in your state is important. Always inform your employer and the adjuster about your marital status and any changes that may affect your claim. Defending your rights could potentially save you from legal conflicts in the future.
How Can a Lawyer Help With Workers’ Comp and Divorce?
The complications of the workers’ comp and the divorce issue can be overwhelming, but a seasoned attorney will be of great help. They’ll explain your rights and what happens to your workers’ comp benefits if you divorce.
A lawyer can provide support in the collection of necessary documents. They will check the accuracy of all the information provided about your injury and benefits. They will be representing you during negotiations, which will minimize the effects of the divorce settlement on your benefits.
They can explain how any payout you receive might affect the calculations of alimony or child support. Having a lawyer’s assistance would mean that you can go through this challenging period in a more efficient manner and still receive the benefits you are entitled to.
Common Misunderstandings About Workers’ Compensation in Divorce
Many people wrongly believe that benefits from workers’ compensation are completely inaccessible during a divorce. This is a misconception since your benefits could be classified as community property and be subjected to division. Some people think that workers’ comp benefits automatically affect alimony or child support. Compensation benefits can influence alimony or child support calculations but they are not a guaranteed factor.
Some think that if their claim is settled, workers’ comp won’t affect divorce. The timing of the compensation and the amount received can influence the negotiations.
Divorce is already a complicated process. The complexity of the matter could only escalate with the addition of the worker’s compensation benefits to settle it.
Understand the laws and regulations in your state regarding this matter. The help of a legal professional can make the handling of these issues better. You can trust your lawyer to stand up for what is rightfully yours.
