Protecting Compensation
It is a fact that compensation awards arising from a personal injury claim are not ring-fenced from a matrimonial settlement. It is therefore important to take steps to protect personal injury settlements as far as possible.
Where to start: Pre-Nuptial Agreements
As a starting point, careful consideration should be given as to how the sum of damages is comprised in the personal injury litigation claim; to placing the personal injury award into a Trust; and to entering into a Living Together/Pre-Nuptial Agreement, as appropriate. The leading authority Mansfield v Mansfield [2011] EWCA Civ 1056 provides guidance on dealing with injury damages in matrimonial proceedings.