Settlement vs Litigation Calculator

Start with the gross settlement, then subtract attorney fees (often 33-40% in contingency cases), case costs (filing fees, depositions, expert witnesses), liens (medical, Medicare/Medicaid, ERISA), and any unpaid medical bills. The remainder is the client's net recovery. On a $100,000 settlement, clients commonly net $40,000-$55,000 after all deductions.

It depends on the claim. Compensatory damages for physical injuries or sickness are generally tax-free under IRC §104(a)(2). Lost wages, punitive damages, interest, and emotional distress not tied to physical injury are typically taxable. Always consult a tax professional, as treatment varies by case type and state.

After signing the release, insurance carriers typically issue payment within 2-6 weeks. The check is deposited into the attorney's trust account, liens and fees are paid, and the client usually receives net funds within 30-60 days of signing. Structured settlements or court approval (for minors) can take longer.

Rarely. First offers from insurers are often 30-50% below what cases ultimately settle for. An attorney can evaluate whether the offer reflects the full value of medical bills, lost wages, future care, and pain and suffering. That said, settling avoids the cost, delay, and risk of trial.