Serious personal injuries are life-changing events that can have serious impacts on a victim’s personal relationships. When an individual’s finances, future employment, or mobility are suddenly thrown into doubt, significant personal turbulence is sometimes the result. For this reason, personal injury lawyers must consider the possibility that a marriage or long-term relationship will end in the months or years after a settlement is reached.
Thanks to a recent Ontario Court of Appeal ruling, personal injury lawyers now have a means of securing their client’s compensation, even in the case of a divorce: structured settlements, through which injury victims receive a set amount of money on a fixed schedule.
In the case of Hunks v. Hunks, the court ruled that structured settlements are not “property,” and thereby not subject to divorce proceedings set out in the province’s Family Law Act.
Hunks v. Hunks
Donna Hunks was injured and disabled in 1995, months after marrying Gary. She sued the supermarket where her injury occurred, and was eventually awarded more than $500,000 in compensation. She used around $200,000 to cover her family’s needs, and bought a structured settlement with the remaining money. The settlement paid her almost $1,290 each month for the rest of her life, plus a two per cent annual increase. It also paid out four lump sums of $15,000 every five years from 2009 to 2024.
The Hunks separated in 2011, and in 2015 the Ontario Superior Court found that Donna’s structured settlement was similar to a pension, and thus part of the matrimonial “property” that she and Gary would have to split evenly. This March, the Court of Appeal disagreed on the basis that Donna’s settlement payments more closely resembled disability benefits, which are considered income by law, than a pension. As such, Gary has no right to half of Donna’s compensation.
Impact
The Court of Appeal’s decision broadens the appeal of structured settlements and may push more personal injury lawyers to recommend them as a viable alternative to lump sum payments, which are more likely to be lost through poor investments and planning. Indeed, structured settlements are a relatively safe, dependable means of managing compensation from a personal injury lawsuit.
Contact Neinstein Personal Injury Lawyers to learn more
If you or a member of your family has suffered a serious injury, contact Neinstein Personal Injury Lawyers today to learn more about your legal options, structured and lump sum settlements, and how our team of experienced, compassionate accident lawyers can help you on your road to recovery.