As this was a childhood settlement, not a settlement or judgment that occurred after she married, the award is her separate property. It is possible for he to maintain the money as her separate property as long as she does not cause it to merge into the marital community estate. For example, she needs to avoid commingling the money with funds that belong to her spouse, or placing them in an account that is jointly held with her spouse.

Given that the award is substantial, she should consider speaking with a financial planner about how to hold the money so as to maintain its separation from the marital estate. If she is contemplating divorce, she should discuss the situation with a divorce lawyer who is familiar with high asset cases, and efforts by spouses to claim merger or to seek equitable distribution of separate assets.