Workers' Compensation Settlement Disputes Lead to Marital Property Division Challenges

Case Overview

This case involves a dissolution of marriage where the parties are entangled in a legal dispute regarding a $700,000 lump sum settlement for workers' compensation benefits. The Joint Findings and Award document reveals that several types of disability payments—temporary, partial, permanent, and total—were unpaid but accrued over approximately nine years during the marriage. As these payments are considered community property, determining the portion of the settlement that represents payment for disability not previously paid during the marriage is critical for equitable distribution. The complexity of workers' compensation law and community property principles in this context necessitates expert insight to navigate potential financial implications for both parties.

Questions to the Workers Compensation expert and their responses

Please describe your experience in workers' compensation, specifically as it relates to lump sum settlements.

I have been involved in workers' compensation claims as an adjuster, supervisor & manager for more than 20 years in California. I also have experience with oversight and consulting in all other US jurisdictions. Permanent disability benefits are a scheduled classification of benefits, so they would be tied to the date of permanency. Entitlement to permanent disability benefits would commence on that date and going forward. Settlement of these benefits via a lump sum settlement would effectively commute the benefits from the end of the scheduled benefits to the date payable.

What information would you need to determine what portion of the lump sum settlement represents payment for disability, not previously paid, during the marriage?

If we are talking about a California claim, I would really need to see the settlement documents from the workers' comp claim. Having a benefits printout would be handy as well. Finally, some background information about the claim is beneficial.

About the expert

This expert has nearly two decades of experience in the insurance industry. He received his BA in English from the University of California at Irvine and is certified as a self-insured administrator, workers’ compensation claims professional and experienced adjuster through the California Department of Insurance. He has held a number of positions in his career, starting as a worker's compensation claims adjuster at State Compensation Insurance Fund. He then went on to hold roles as a senior claims analyst in the risk management department at Select Staffing and as a senior claims examiner at CorVel Corporation, Tristar Risk Management, and PRG Insurance Staffing. He has also worked as a claims manager and project manager at RiskSolutions Inc., and a claims supervisor at Albertsons Holdings. Currently, he is the owner of a consultancy firm that assists brokers, employers, claims administrators, and insurance carriers with complex litigation and case management issues. He is also a senior claims examiner for a claims staffing company, both in California.

E-676048

Specialties:

Workers Compensation