JUSTICENTER Personal Injury Lawyers | February 13, 2025 | Personal Injury
Getting a personal injury settlement can feel like a huge relief after an accident. But many people wonder, “How much of this settlement will I actually get?” Understanding how settlements are broken down can help you know where your money is going and what to expect.
In this blog, we’ll explain how personal injury settlements are paid out, what percentages lawyers take, and what factors can affect the final amount that goes into your pocket.
How Are Personal Injury Settlements Paid Out?
Once you reach a settlement, the money doesn’t go straight to your bank account. The payment is typically processed in steps:
- Settlement Agreement: Both sides agree on an amount, and the terms are put in writing.
- Insurance Payment: The at-fault party’s insurance company sends the settlement check to your lawyer.
- Deductions: Your lawyer will use the settlement to cover legal fees, case expenses, and any outstanding bills before sending the rest to you.
Most settlements are paid as a single lump sum, but some may be structured into payments over time. This depends on the agreement you make with the other party.
What Percentage Does a Lawyer Take From a Settlement?
Personal injury lawyers usually work on a contingency fee basis, which means they only get paid if you win your case. The lawyer’s fee is typically a percentage of the settlement amount. Here’s a general breakdown:
- Standard Fee: Most lawyers charge 33% (one-third) of the settlement if the case is resolved before going to court.
- Higher Fee for Trials: If the case goes to trial, the fee may increase to 40% or more, since trials involve more time and work.
For example, if your settlement is $90,000 and the lawyer takes 33%, their fee would be $30,000. You’d have $60,000 left before other expenses are deducted.
Other Costs That May Be Deducted
In addition to your lawyer’s fee, there are other costs that might come out of your settlement, including:
- Medical Bills: If you received medical treatment and didn’t pay upfront, your settlement might be used to cover those costs. For example, hospitals or doctors might have liens on your settlement.
- Case Expenses: These include the costs your lawyer covered to build your case, such as filing fees, expert witness costs, and investigation fees.
- Unpaid Debts or Liens: If you owe money related to the accident, such as to health insurers or Medicare, these amounts may need to be paid from your settlement.
These deductions are important to understand because they affect the final amount you take home.
How Much Goes in Your Pocket?
After all the deductions, the remaining amount is yours to keep. Here’s an example breakdown of a $90,000 settlement:
Lawyer’s Fee (33%): $30,000
Medical Bills: $15,000
Case Expenses: $5,000
Total Deducted: $50,000
Your Share: $40,000
Every case is different, so the amount you receive will depend on your specific circumstances.
How Much Should You Ask for in a Personal Injury Settlement?
The amount you should ask for depends on the damages you suffered. You should consider:
- Economic Damages: medical bills, lost wages, and other out-of-pocket costs
- Non-Economic Damages: pain and suffering, emotional distress, or loss of enjoyment of life
- Future Costs: expenses for ongoing medical treatment or reduced earning ability
Working with an experienced personal injury lawyer can help you calculate a fair settlement amount that covers all your damages.
Why a Lawyer’s Fee is Worth It
While it might seem like lawyers take a big chunk of your settlement, having a lawyer can often increase the total amount you receive. They negotiate with insurance companies, gather evidence, and handle the legal process, which can result in a larger settlement than you’d get on your own.
A personal injury settlement covers much more than just your pain and suffering—it helps pay for medical bills, lost wages, and legal fees. Understanding how settlements are paid out and what deductions to expect can help you feel more prepared.
If you’ve been injured and want to understand your legal options, consult with a personal injury lawyer. They’ll guide you through the process and help you get the compensation you deserve.
Contact the Encino Personal Injury Lawyers of JUSTICENTER Personal Injury Lawyers for Help Today
Please contact an experienced personal injury lawyer at JUSTICENTER Personal Injury Lawyers for a free initial consultation today at (833) 852-3600.
Our main office is in Encino, CA, but we serve all through Los Angeles County.
JUSTICENTER Personal Injury Lawyers
16633 Ventura Blvd suite 1011,
Encino, CA 91436
