How to Divide a Wrongful Death Settlement

Losing a loved one is an incredibly difficult experience, and when that loss is due to wrongful death, the emotional and financial strain can be overwhelming. 

In the aftermath, a wrongful death settlement can provide some financial relief, but it also raises questions about how to divide the settlement fairly among the surviving family members. 

Here are some of the important points to guide you through the factors and steps answering how to divide a wrongful death settlement.

Wrongful Death Settlements

A wrongful death settlement is compensation awarded to the family of a deceased person whose death was caused by the negligence or intentional act of another party. This settlement is done by a wrongful death lawyer and is meant to cover various damages, including medical expenses, funeral costs, lost income, and the pain and suffering of the survivors.

Key Factors in Dividing a Wrongful Death Settlement

The process of dividing a wrongful death settlement can be complex, as it involves legal, financial, and emotional considerations. Here are some important factors to focus on:

1. State Laws and Legal Framework

Each state has its own laws governing wrongful death claims and settlements. These laws dictate who is eligible to receive compensation and how the settlement should be divided. Typically, the spouse, children, and sometimes parents of the deceased are considered eligible beneficiaries. Understanding your state’s specific laws is crucial in ensuring the settlement is divided appropriately.

2. Survivor Relationships and Dependency

The relationship between the deceased and the survivors plays a significant role in determining the distribution of the settlement. Courts often consider the level of dependency of each beneficiary on the deceased. For example:

• Spouse: Typically, the spouse may receive a significant portion of the settlement, especially if they were financially dependent on the deceased.

• Children: Minor children might receive a larger share due to their dependency on the deceased for support and care.

• Parents: If the deceased was providing financial support to elderly parents, they might also be entitled to a portion of the settlement.

3. Economic vs. Non-Economic Damages

Settlements for wrongful deaths may involve bothvboth economic and non-economic damages:

Economic Damages

These are quantifiable financial losses, such as lost wages, medical expenses, and funeral costs. These damages are usually easier to divide based on the financial impact on each beneficiary.

Non-Economic Damages

These consist of recompense for suffering, emotional sorrow, and loss of company. Dividing non-economic damages can be more subjective and may require negotiation among the beneficiaries or a court decision.

4. Pre-existing Agreements

In some cases, families may have pre-existing agreements or wills that outline how assets should be distributed upon death. While these documents may not directly dictate the distribution of a wrongful death settlement, they can provide guidance and help resolve disputes among beneficiaries.

Steps to Divide a Wrongful Death Settlement

Dividing a wrongful death settlement involves several steps, often requiring legal and financial expertise. Here are a few steps to assist you with the procedure:

1. Identify Eligible Beneficiaries

The first step is to identify all individuals who are legally eligible to receive a portion of the settlement. This typically includes the spouse, children, and possibly parents of the deceased. Consult with an attorney to ensure all potential beneficiaries are accounted for.

2. Evaluate the Settlement Amount

Once the settlement amount is determined, categorize the damages into economic and non-economic components. This evaluation helps in understanding the total compensation available for distribution.

3. Consult with Legal Professionals

Engage an attorney who specializes in wrongful death cases. They can provide valuable guidance on state laws, help negotiate among beneficiaries, and ensure the settlement is divided fairly and legally.

4. Negotiate Among Beneficiaries

Open and honest communication among beneficiaries is crucial. Discuss each person’s financial needs, dependency on the deceased, and emotional distress. Negotiation can help reach an amicable agreement on how to divide the settlement.

5. Consider Mediation

If negotiations among beneficiaries become contentious, consider mediation. A neutral third-party mediator can facilitate discussions and help reach a fair resolution without resorting to court intervention.

6. Court Intervention

The court may have to step in if the beneficiaries are unable to agree on how to divide the compensation. A judge will review the case, consider state laws and the circumstances of each beneficiary, and make a binding decision on how to divide the settlement.

7. Distribute the Settlement

Once an agreement is reached or a court decision is made, the settlement can be distributed. Ensure all legal and financial documentation is completed accurately to facilitate the distribution process.

Practical Tips for Managing the Process

The following useful advice can be used to facilitate the management of the wrongful death settlement division process: 

• Maintain Clear Communication: Keep all beneficiaries informed throughout the process to avoid misunderstandings and foster cooperation.

• Seek Professional Advice: Financial advisors and attorneys can provide expert guidance to ensure the settlement is divided fairly and efficiently.

• Document Everything: Keep detailed records of all discussions, agreements, and legal proceedings. Documentation can help resolve disputes and provide clarity.

Connect with Mokaram Law Firm!

Dividing a wrongful death settlement is a sensitive and complex process that requires careful consideration of legal, financial, and emotional factors. By understanding the key factors involved and following a structured approach, you can ensure a fair and equitable distribution of the settlement among the surviving family members.

At Mokaram Law Firm, we understand the challenges families face in such difficult times. Our experienced team offers comprehensive legal solutions to help you manage and distribute wrongful death settlements with compassion and precision. Contact us today at (281) 609-9224 to learn more about how we can support you through this process.