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This is the situation.My brother was in a car accident and his neck was broken.The lawyer say’s the check is here and it is in my brother and his wife’s name , who he has had no contact with for 20 years.He does not know where she is.The lawyer say’s he has to hire another lawyer to find her for a divorce before he can release the check because it is in both of their names.He also say’s he has to pay hospital bills out of the check also. I thought the insurance company paid any bills before the check is sent to the lawyer for settlement.
2 comments on this topic
24. December - 9:57 am
The other guys are pretty much right. If she’s his wife, she has a right to the proceeds.
As an aside, however, he may not have to track her down and get a divorce. Check your state’s Enoch Arden statutes (that’s generally an informal term). In most states if your spouse is missing for a certain number of years it is presumed that she is deceased and/or you are divorced. Here in Tennessee, if she’s missing for 5 years, or if she is missing for 2 years and there is a well-founded rumor of her death, you are presumed divorced.
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Boxers,
There’s no estate. He never said his brother was dead. In fact, I’m pretty sure the lawyer wouldn’t be recommending a divorce if the brother were dead. That pretty much ends the relationship right there.
24. December - 9:57 am
The lawyer is right. The rights of the spouse in the proceeds of the settlement must be settled and the best way to do it after 20 years is a divorce. And, the medical bills constitute a lien on the proceeds. If they have not been paid then they must first be paid out of the settlement.
24. December - 9:57 am
Sounds like the lawyer is acting correctly. There are lists of priorities of who gets paid out of estates, who has to sign off on what, ……. The theory is that once the estate is zeroed out then it is done. If there were mistakes then things get complicated.
Some jurisdictions have Commissioner of Accounts who over see estate accountings, meaning, outside of a lawsuit, the executor/administrator has to answer to them as well.
I have easily seen it take over a year. There are also time lines for creditors to file against an estate. So it in everyone’s best interest to wait until all the creditors are known before disbursing the money.
24. December - 9:57 am
His lawyer is behaving correctly. Before an attorney may legally disburse settlement funds, he has to make sure that any liens in the case are paid off (ie, medical providers), and that all other parties legally entitled to the money have either been notified about receipt of the funds or have gotten paid. The insurance company may be entitled to reimbursement for what its already paid on your brother’s behalf.
In the case of the wife, the simple fact is that she is still your brother’s wife. He should have divorced her years ago, but didn’t. She is technically entitled to at least a portion, and maybe as much as half. it all depends on how the settlement agreement was written and the laws in your state.