If another’s negligence leaves you injured in an accident, the bottom line regarding your recovery is how much of your settlement will actually come to you – allowing you the resources you need to regain your health and well-being.
Personal injury claim settlements have nuances, and understanding how your settlement will break down is crucial. Working closely with an experienced Boca Raton car accident attorney is always in your best interest to help ensure you receive everything you are owed — nothing less. Contact the Eltringham Law Group to request a case evaluation.
What Can Be Part of Your Settlement Amount?
Before you can break down your settlement amount, you’ll need to reach a settlement, which comes down to pinpointing the extent of your losses in every category that applies, including:
- Property damage to your car and its contents
- Your related medical expenses, including any anticipated future healthcare needs
- Your lost earnings, including any losses related to future earning capacity
- Your pain and suffering, which can be immense and can seriously impede your recovery process
Personal Injury Settlement Breakdown
Once you and your attorney negotiate a fair settlement with the insurance company, the insurance company will prepare a settlement agreement & release that you will need to sign. At this point, the insurance company will issue a check to your attorney that they will deposit in a trust account for your benefit.
From here, the funds will be distributed by your attorney according to specific applicable factors.
Unpaid medical expenses & 3rd party liens
First, any outstanding medical bills that are still due & owing at the time of settlement must be paid out of the settlement funds. Additionally, any health insurance liens or other subrogation claims must likewise be satisfied out of the settlement proceeds. This is because certain third party payors have a legal right of reimbursement to the extent that they make payments for medical care & treatment related to the injuries that you’re claiming.
Your skilled car accident attorney will negotiate for the best terms in relation to these pending medical expenses, which often means attempting to negotiate a reduced payoff amount.
Your attorney’s fees
Most reputable car accident attorneys work on contingency, which affords you the following significant benefits:
- You won’t need to pay anything upfront.
- You take on none of the financial risks – if your claim does not settle or receive a court award, you won’t owe anything.
- Having an attorney in your corner can significantly increase your ability to obtain a fair settlement that addresses your losses in their entirety.
Once your claim does settle, your attorney will receive a prearranged percentage of your settlement as their pay. The agreement you make with your personal injury attorney will include the specifics of this arrangement.
For example, some attorneys charge a flat percentage while others scale their percentage according to whether or not the claim ultimately goes to court. As such, it’s important to know how you’ll be charged ahead of time and understand the pay structure’s financial implications.
Legal costs and expenses
Some attorneys factor separate costs into their pay percentage, and others bill separate charges that will also play into your settlement breakdown.
Common legal costs and expenses include:
- The cost of depositions
- The travel costs of your attorney
- Filing fees
- Court costs
- The costs of copies and postage
- The cost of obtaining documents and reports
- The fees charged by expert witnesses, including their travel costs
- The cost of investigating in the process of building your strongest claim
- The cost of preparing for trial
The tax implications of your personal injury settlement
The settlement you receive after being injured by another driver’s negligence amounts to compensation for the losses you suffered, which means that it is not income and is, therefore, not taxed. However, there are two exceptions.
Consider the following:
- The IRS can tax the compensation you receive in relation to lost wages.
- The IRS can tax any punitive damages you receive.
Most settlements do not specify or allocate a specific sum awarded for lost wages. So, as a practical matter, taxing this portion of your settlement is generally a moot point.
Further, punitive damages are intended to punish a defendant for intentional misconduct or gross negligence. Which does not come into play in the vast majority of personal injury cases and therefore very rarely awarded.
Discuss Your Claim with an Experienced Florida Personal Injury Attorney Today
The attorneys at Eltringham Law Group Personal Injury and Car Accident Attorneys are committed to skillfully negotiating for your claim’s best possible resolution – including maximizing the amount you will receive in your settlement breakdown.
The degree to which you can recover your health and well-being can hinge on the available resources, and we take this matter as seriously as you do.
For more information about what we can do to help you, please contact us through our website or call us at 561-944-6746 today.
Personal Injury Settlement Breakdown FAQs
How much are personal injury settlements?
Your settlement will reflect all your covered losses – as tempered by any percentage of fault that may be assigned to you.
How much do lawyers take from a settlement in Florida?
Your attorney will receive a prearranged percentage of your settlement that should be clearly explained to you ahead of time. After your claim settles, this prearranged amount will go directly to your attorney as pay.
Do I really need an attorney?
Having an accomplished personal injury attorney in your corner can mean the difference between being fairly compensated and not, which makes working with an attorney in your best interest.