The Slip and Fall of the California Legislature in the Classification of Personal Injury Damages at Divorce and Death

This article argues that by classifying all personal injury proceeds as community property during marriage, the California Legislature failed to consider the nature of personal injury damages as replacement compensation for both economic damages, such as past lost wages, future lost wages, lost earning capacity, medical expenses, as well as non-economic damages of pain and suffering. These component parts could readily be allocated for classification. Instead, the monies are classified as Community property in toto during marriage and are awarded to the injured spouse at divorce absent proof that justice requires an alternate disposition. The California statute provides an ambiguous standard as to when "justice require[s] another disposition" of the proceeds at dissolution, leaving the court with broad discretion over the division of such monies at divorce and leaving little predictability for spouses. This article addresses the various problems that arise from this convoluted scheme of classification and treatment.