In a 2010 case an appellate court considered whether funds received by the ex-wife as a settlement in an employment discrimination claim were marital property. The couple was married in 1998 and had two children, ages 10 and 4 at the time of trial in this case. The ex-wife was an attorney and the ex-husband was a clerk with the IRS. The ex-wife filed for divorce on the grounds of constructive desertion. The ex-husband filed a counterclaim on the same basis. They had lived apart for 1 year beforehand. The court granted the divorce on that basis.
During the marriage, the ex-wife’s employment with her law firm was terminated as of December 31, 2002. She filed a discrimination lawsuit against the firm and its partners and employees, alleging violations of the Family and Medical Leave Act. She settled the case in 2006 and was paid $550,000. These were paid in two installments.
In a joint statement to the court in connection with the divorce proceedings, she claims she kept $300,000 from the settlement. She contended that the settlement didn’t specify which portion represented what element of damage and therefore, the settlement could not be characterized as marital property. The ex-husband argued that the settlement was marital property. The trial court found that the lawsuit was based on employer practices that had occurred during the marriage. However, it did not find that the settlement was marital property. Continue reading