Opinion ID: 1879553
Heading Depth: 2
Heading Rank: 1

Heading: Personal Injury Award

Text: Marvella claims that the trial court was incorrect in finding the damage award too remote in time and too long merged in the joint assets of the parties to be considered a distributable asset. Marvella argues that four years (1982-1986) is not too remote in time and that the proceeds are traceable. She claims that Exhibit J establishes the disbursement of the proceeds. [2] The cases of Wipf v. Wipf, 273 N.W.2d 124 (S.D.1978) and Fink v. Fink, 296 N.W. 2d 916 (S.D.1980) appear to support the proposition that the settlement proceeds of personal injury suits are marital assets subject to distribution. In other jurisdictions, there are cases which hold such funds are marital assets, In re Marriage of McNerney, 417 N.W.2d 205, 206 (Iowa 1987) (proceeds of a personal injury claim are marital assets, to be divided according to the circumstances of each case); Phillips v. Phillips, 290 S.C. 455, 351 S.E.2d 178 (S.C.App.1986); McDonald v. McDonald, 19 Ark.App. 75, 716 S.W.2d 788 (1986); Richardson v. Richardson, 139 Wis.2d 778, 407 N.W.2d 231 (1987), and cases which hold the funds belong to the party injured and are not marital assets, Regan v. Regan, 507 So.2d 54 (Miss.1987); Izatt v. Izatt, 627 P.2d 49 (Utah 1981). Jerry claims that the settlement award was made to the parties jointly and that all of the money has been spent so that there no longer remains an asset to be divided. We believe four years is not too remote under these circumstances and that settlement proceeds are marital property subject to distribution. However, whether the distribution constitutes an abuse of discretion depends on the entire property division.