Personal Injury Lawsuits Do Not Belong to Both Spouses
An important political issue for many doctors and businesses is tort reform. The incident that often sparks the debate is the “hot coffee” case from 1994 when a woman sued McDonald’s after she suffered third degree burns upon spilling hot coffee in her lap at a drive-through. The jury in the case awarded the woman $160,000 for her medical bills and losses and then an additional $2.7 in punitive damages. These high jury awards have prompted some to call for caps on awards, and caps make up a part of tort reform. Torts are lawsuits that involve a civil wrong; for example, negligence is a common tort. Common tort lawsuits involve negligent drivers who cause accidents or property owners whose dangerous property leads to an injury for a guest. When a spouse receives a settlement or court award pursuant to a personal injury claim, tort reform could have an impact on the couple’s divorce settlement. The proceeds from a tort lawsuit can amount to a lot of money, and a judge will take that amount into consideration should the couple later divorce. In community property states like Texas, at divorce time, a couple’s property is divided into either community property…
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