Damages like medical bills and lost wages can easily be calculated to the penny, but pain and suffering is completely subjective. However, a jury is responsible for placing a specific dollar amount on these damages.

Can my spouse take my settlement money?

If you and your spouse file for divorce, however, the law may entitle your spouse to a portion of your settlement – even if your spouse was not involved in the accident. In the eyes of California law, personal injury settlements obtained during the course of a marriage are community property.

How are lost wages calculated in a lawsuit?

Lost wages To calculate these damages, a person simply multiplies his daily wage by the number of days that he missed. If the person works a variable number of hours each week, the court may use an average number of hours multiplied by the number of days and the hourly rate.

How is a lawuit settlement reported to the employer?

Any portion of the settlement proceeds paid to compensate for wages must be reported through Form W-2, and will essentially be treated by the employer as a payroll check. See I.R.C. § 6051.

How does lost income affect a personal injury settlement?

The entire amount of your lost income is considered part of your special damages. Because the final amount of your personal injury settlement is based on a multiple of your special damages, the more proof you have of the entire amount of lost income, the higher your total settlement will be.

When is your spouse entitled to your personal injury settlement?

If the personal injury settlement or award is community property your spouse will be entitled to their share upon divorce. One key consideration is what the spouse was receiving compensation for. There are many different types of damages including economic and non-economic damages.

How does a lawsuit settlement affect your benefits?

Cash received to reimburse you for expenses, medical bills and attorney’s fees are not considered wages and therefore should not reduce your benefit payments. Similarly, money paid as compensation for pain and suffering is not considered a wage because there was no work performed to earn the money.