Wrongfully Convicted Man Keeps $6 Million Settlement After Ex-Wife Sues for Share

Steven Phillips, who spent 24 years in prison for a crime he did not commit, successfully fought off a lawsuit from his ex-wife who sought a portion of his $6 million compensation payout.
Phillips was convicted in 1982 in Dallas, Texas, of sexual assault and burglary. He maintained his innocence throughout his imprisonment. In 2008, DNA evidence finally exonerated him and linked the crimes to another perpetrator. Under Texas’ Tim Cole Act, which provides compensation to wrongfully convicted individuals, Phillips was awarded approximately $6 million.

While Phillips was still incarcerated, his then-wife, Traci Tucker, divorced him. After his release and receipt of the compensation, Tucker filed a lawsuit claiming that part of the settlement — specifically the portion representing “lost wages” during their marriage — should be considered community property.
A trial court initially sided with Tucker, awarding her more than $114,000. However, in 2014, the Fifth District Court of Appeals reversed the decision. The appeals court ruled that the compensation Phillips received was intended solely to address his personal suffering, loss of freedom, and the injustice he endured — not as marital assets to be divided.
The court’s decision set an important legal precedent in Texas, clarifying that wrongful conviction compensation is personal to the exoneree and cannot be treated as community property in divorce proceedings.
A Story of Justice (and Resilience)
Steven Phillips’ case remains one of the more notable wrongful conviction stories in the United States. After regaining his freedom, he not only kept the full compensation but also became an advocate for criminal justice reform.
His ex-wife ultimately received nothing from the settlement.
This case highlights both the failures of the justice system and the legal protections later put in place to help those who are wrongfully imprisoned rebuild their lives.