Can wife take part of an injury settlement in a divorce?

Question: A friend of mine has been married 9 yrs. He worked full time but got hurt on job can no longer work or drive he won a settlement for 3 million dollars he put it in a trust. Is his wife entitled to any of that $ since she is only selling avon for $ and is capable of getting a better paying job. The money he won is to be used for his medical needs and expenses as well as every day expenses. They live in California.

What would he need to do at this point to protect himself?

She is starting to open all kinds of credit cards some with a limit of almost $10,000.

They have 2 children under the age of 10 if this makes a difference.

Answer: I cannot answer the questions presented specifically as they relate to the State of California as I am not licensed to practice law in that State.

It is my understanding that Cal. is a community property state. I am not familiar with how Cal would specifically divide a workers compensation claim. In non-community property states, the award for lost wages, future wages (through the divorce date) and reimbursement of medical bills that were paid by the individual (as opposed to the insurance company or State) would be marital and divided by the court. The portion of the personal injury award for pain and suffering would be non-marital and not divisible by the State.

It would be unethical for me to advise someone how to hide money from their spouse in anticipation of a divorce. However, he needs to discuss with a Cal. attorney (probably an estate attorney and a divorce attorney) how to separate the property from the marital estate. This is distinct from secreting the asset as it would be disclosed to his wife, but placed in a trust or in a third parties care for his benefit. With regard to the credit cards, it would be appropriate to have a credit report done and cancel any credit cards or lines of credit that are opened. He could also consider contacting the company and lowering the available credit.

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