This simple question is actually a multi-layered problem and its answer is subject to several different interpretations and situations. Tennessee is an equitable distribution state which means basically that whatever you bring into the relationship – you leave with; whatever you earn or receive during the marriage is marital property; and marital property (property bought (or money earned) for the use of both parties during the marriage) is divided as equally as possible. It depends also on when the accident occured. If it occured prior to the marriage, it would be hard to prove the settlement to be marital property. However, if it occurred during the marriage, your spouse could have claim to part of the damages (their emotional suffering, time off work, loss of consortium). The best way to ensure any settlement or judgment you receive in an accident case is protected in case of divorce is:
1) Talk to your injury attorneys about it up front. Even if you are blissfully married during your injury case, ask them what you can do to ensure that money stays separate in case of a divorce. It would be smart for your judgment or settlement to specifically allocate your damages, such as $ for property damage, $ for medical bills, $ for time off work, $ for pain and suffering, $ for loss of consortium (this is usually allocated to the spouse for their loss of enjoyment and companionship during the convalescence from your injuries). Talk to your divorce attorney about it – you will want to let them know about the money, how it came about, how it was allocated and who your injury attorney was in case they need additional information.
2) Put the funds from the judgment or settlement in a separate account than your joint marriage or personal checking account and keep careful track of how it was used if you withdraw it. Once you the the funds into the general pool of finances, it’s going to be much harder to prove how much, if any, of the settlement you are entitled to retain after the marriage.
There is no simple answer to this question, but planning for any event up front and maintaining good records can help you retain as much of your injury settlement as possible in the event of a divorce.