Kansas Court Says Proceeds of Wife’s Loss of Companionship Claim Constitute Marital Property

Though certain exceptions apply, assets that a married person accumulates while they are wed generally become part of the property that would be divided between the parties in a divorce. Some situations present complicated questions however. A recent Kansas appellate court decision reviewed the status of settlement proceeds received individually by a husband and wife in connection with the husband’s catastrophic injury.

In 2013, Aaron Meek sustained permanent injuries in an explosion. Given the devastating nature of Aaron Meek’s condition, both he and his wife, Nancy Karanja-Meek, filed lawsuits seeking compensation for the damages they incurred. Nancy’s loss of companionship claim concerned the impact her husband’s injury had on their relationship and quality of life together.

Both spouses received settlements that included lump-sum payments as well as annuities structured to provide ongoing payments for approximately 30 years. Several years later, the couple began divorce proceedings. With respect to the settlements, Nancy argued that her annuity payments represented her separate property and that each spouse should continue receiving their respective payments independently after the marriage ended. Aaron disagreed, asserting that Nancy’s annuity should be part of the divisible marital property given that she would no longer be taking care of him or losing any spousal companionship following the divorce.

The trial court accepted Nancy’s interpretation, but the Kansas Court of Appeals reversed that decision, finding that the proceeds of both annuities constitute divisible marital property subject to distribution among the spouses. Under Kansas law, the circumstances under which settlement proceeds are received can significantly affect how they are treated in a divorce. Compensation tied to shared marital experiences, such as a loss of companionship claim that directly reflects the impact of an injury on the marital relationship itself, may be particularly vulnerable to being classified as marital property rather than the separate asset of the receiving spouse.

For Kansas couples approaching divorce, this decision serves as an important reminder that determining whether a particular asset is separate or marital property can be trickier than it seems. Annuity payments that extend for decades beyond the marriage, settlement proceeds of various kinds, and other assets with long time horizons all deserve careful legal analysis before any agreements are reached. An experienced Kansas divorce attorney can examine the relevant facts and advise you of what to expect. 

The Henry Law Firm, P.A. has extensive experience handling complex divorce issues for Kansas clients, including questions involving separate and marital property. Schedule an initial consultation with our Overland Park office by calling 913-381-5020 or contacting us online.