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New York Law - Disability Benefits Disability benefits are the separate property of the injured party. Section 236.B.1.d Cases: Fleitz (1994) 606 NYS2d 825 (benefits held not marital property to extent they represented compensation for personal injury). Dolan (1991) 577 NYS2d 195 (disability benefits are separate property except to the extent that the payments represent deferred compensation; police officer, where disability payments varied with salary and seniority).
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