How to Divide a Wrongful Death Settlement: Fair Distribution Among Family Members

If you've lost a loved one due to someone else's carelessness or malice, you may be able to file a claim and receive a wrongful death settlement. A qualified wrongful death attorney can guide you through this complex process and ensure that your family is fairly compensated for its loss.

In this post, we’ll outline the steps involved in dividing a wrongful death settlement fairly among the beneficiaries.

What Are Wrongful Death Settlements?

A wrongful death settlement is a form of compensation awarded to the surviving family members when a person dies due to another person's negligence, intentional actions, or misconduct. These settlements aim to offset the financial and emotional losses suffered by the deceased individual's dependents and family.

Types of Losses Wrongful Death Settlements Cover

Wrongful death settlements typically cover:

• Medical expenses related to the deceased's fatal injury or illness
• Funeral and burial costs
• Lost earnings and benefits the deceased would have provided
• Loss of companionship, guidance, and emotional support
• The deceased’s pain and suffering before death

In cases of gross negligence, punitive damages may also be available to punish the at-fault party and deter similar wrongdoing in the future.

Who Can Receive a Wrongful Death Settlement?

Eligibility to receive compensation from a wrongful death claim varies by state but generally extends to the following parties:

• The surviving spouse: The victim’s spouse generally receives the largest portion, as they were likely most financially and emotionally dependent on the deceased.
• The surviving children: Minor children typically receive more than independent adult children.
• The parents of the deceased: The deceased’s parents may receive compensation in cases where the victim was unmarried and without children.
• Other family members: In some jurisdictions, siblings or other relatives may be eligible if they were financially dependent on the deceased.

If none of these parties files a wrongful death claim within three months, the executor or administrator of the deceased’s estate can do so on their behalf.

Factors Affecting the Division of Wrongful Death Settlements

Various conditions can influence how a wrongful death settlement is divided among the surviving loved ones, including:

• State laws: Laws vary around the country regarding who can file a claim, the applicable statute of limitations, and how settlements are distributed.
• The deceased's will: While not directly dictating settlement division, the will may influence the distribution of assets.
• Probate: Settlements may have to go through probate, a formal process in which the deceased's estate is settled and their debts are paid.
• Insurance coverage: The at-fault party's available insurance coverage can impact the total settlement amount, leaving more or less for individual survivors.
• Financial dependence: The deceased's lost financial support for various family members, especially minor children, is a central consideration.
• Loss of companionship: The emotional impact of the death is also a factor in promoting the well-being of the surviving family members.
• Miscellaneous expenses: Medical and funeral expenses of different values are included to provide compensation for these financial losses.

An experienced attorney can take stock of what each surviving loved one has lost to ensure a more equitable settlement division.

The Legal Process of Dividing a Wrongful Death Settlement

Dividing a wrongful death settlement involves several key steps, which are as follows:

Filing the Wrongful Death Claim

There may be grounds for a wrongful death claim when a person dies due to another person or entity’s negligence or intentional conduct. In most states, the personal representative of the deceased's estate must file the lawsuit on behalf of the surviving family members.

Determining the Settlement Amount

Deciding the appropriate amount for a wrongful death settlement requires a thorough evaluation of the tangible and intangible losses the surviving family members have suffered. Ultimately, the goal is to reach a settlement that not only accounts for the quantifiable economic impacts but also recognizes the profound emotional pain and suffering caused by the untimely loss.

Carrying Out Court-Approved Distribution

In many cases, courts must approve the distribution of wrongful death compensation, especially when minor children are involved. This process typically entails submitting a proposed distribution plan to the court outlining how the settlement funds will be split up among the beneficiaries.

Common Methods for Dividing Wrongful Death Settlements

While the purpose of a wrongful death settlement is to acknowledge the tragedy of the victim’s death and provide for their loved ones, differing needs and perspectives can sometimes lead to disagreements. Various methods can be employed to promote fair and equitable distribution, each with its own unique set of considerations and implications.

Statutory Distribution

Many states have laws that determine how wrongful death settlements are divided. These statutory distributions may:

• Award a certain percentage to the surviving spouse.
• Allocate specific amounts to surviving children.
• Consider the needs of financially dependent family members.

Settlement Agreement

In some cases, family members may come to an agreement on how to divide the settlement through negotiation. This approach requires:

• Open communication
• Consensus on the fair distribution of funds
• Proof of the agreement in a formal settlement document
• Court approval, in many jurisdictions

Need-Based Distribution

Some courts favor dividing settlements based on the financial needs of surviving family members, weighing factors like:

• Who was financially dependent on the deceased individual
• The extent of financial support provided
• Future financial needs of dependents
• Outstanding debts and expenses

Per Capita Distribution

This method divides the settlement equally among all eligible beneficiaries, regardless of their relationship to the deceased. While simple, this approach may not account for varying degrees of financial dependence.

Challenges in Dividing Wrongful Death Settlements

Divvying up a wrongful death settlement can be complicated. Common challenges include:

• Family disagreements: Contrasting views on relationships, differing financial needs, and emotional stress can lead to conflict.
• Complex family structures: Blended families with step-children and multiple marriages demand careful assessment of legal and emotional bonds.
• Identifying claimants: Locating all prospective beneficiaries, including estranged relatives or undisclosed dependents, can be difficult.
• Tax implications: Different settlement percentages can have varying tax requirements.

If you’re having trouble working out an equitable distribution arrangement for a wrongful death settlement, the best course of action is to work with a knowledgeable legal professional.

Wrongful Death Settlements in Texas

Texas’s wrongful death laws outline specific procedures for filing a wrongful death lawsuit and dividing the resulting settlement.

These regulations dictate the terms of liability for wrongful death, specify who can file a claim, and provide guidance on the equitable distribution of funds among the surviving family members. Eligible parties have only two years from the date of the death to file a wrongful death lawsuit.

Omar Ochoa Law Firm provides comprehensive legal services for Texas wrongful death cases, from initial investigation and calculation of losses to settlement negotiation and courtroom representation, ensuring that clients’ rights are respected throughout the process.

Achieve a Fair Resolution with Omar Ochoa Law Firm

Dividing a wrongful death settlement requires careful consideration of legal guidelines, family relationships, and financial dependencies. By seeking knowledgeable legal counsel and maintaining open communication among family members, you can make sure your settlement honors your loved one's memory and supports those who depended on them most.

While no amount of money can replace your loved one, pursuing a wrongful death claim can offer a sense of closure and financial stability as you adjust to life after your loss. If you're in this difficult situation, don't hesitate to reach out and ask for the legal advocacy you need to protect your family's future.