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9/11 Award Ruled Separate Property In Divorce Case

New York Law Journal

October 5, 2009

An injured firefighter's entire federal September 11th Victim Compensation Fund award constitutes separate property for the purposes of equitable distribution, a state appeals court in Brooklyn has ruled. A panel of the Appellate Division, Second Department, found that even though economic damages are typically considered part of a marital estate, lawmakers intended for both the economic and noneconomic portions of personal injury awards to be designated separate property. "While the logic of the Equitable Distribution Law . . . suggests the conclusion that the economic portion of a personal injury award should be marital property, [the] legislative history compels the contrary result," Justice Robert A. Spolzino wrote for the unanimous panel.

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