Professional services
Law Firm Personal Injury Settlement Distribution Calculator
Works the distribution of a personal injury settlement, where medical liens decide the client's net.
Result
Business arithmetic for running a practice, not legal advice. Fee agreements, contingency limits, trust accounting and fee splitting are governed by the rules of professional conduct in your jurisdiction, and several of them are strict. Check the applicable rules before any of this affects a client agreement. This distributes a settlement figure you already have. It does not estimate what an injury claim is worth, and no calculator should: that depends on liability, the nature and permanence of the injury, jurisdiction, policy limits and the specific facts. Lien resolution involves ERISA, Medicare and Medicaid rules that differ fundamentally from ordinary medical bills and carry personal exposure if mishandled.
Get a Free Business AuditHow the calculation works
Gross settlement less the fee, less costs advanced, less medical liens and other claims against the recovery, gives the client's net, with each deduction shown. In personal injury the lien position is frequently the largest single determinant of what the client receives, and it is often the last thing resolved.
What moves the number
- Fee percentage and any step by stage.
- Costs advanced including experts and records.
- Medical provider, health plan and statutory liens.
- Whether liens can be negotiated or reduced.
Where this one goes wrong
Disbursing before liens are resolved exposes both the client and the firm, since a lienholder's claim can survive the distribution and the firm may bear responsibility for having ignored a known claim. Identify and resolve them first. Beyond the obligation, lien reduction is the most valuable remaining work: reductions frequently succeed and go entirely to the client, and a settlement that looked disappointing can improve substantially once the liens are negotiated rather than simply paid.
Before you quote
- Identify and resolve all liens before disbursing.
- Negotiate reductions rather than paying claims as presented.
- Hold funds in client trust and disburse against a written statement.
Where the rules come from
Questions
About this calculator
Why is the client's net so much less than the settlement?
Fee, costs advanced and liens, with liens frequently the largest and least expected. Medical providers, health plans and statutory claimants all assert claims against the recovery, and they are resolved after the headline number is agreed.
Can liens be reduced?
Frequently, depending on type and jurisdiction, and the reduction goes entirely to the client. It is usually the most valuable work remaining at the end of a matter, and a settlement that looked disappointing can improve substantially through it.
What happens if funds are disbursed before liens are resolved?
The claim can survive the distribution, exposing the client and potentially the firm for having disregarded a known claim. Identifying and resolving liens before disbursement is both the professional obligation and the practical protection.
The formula
client net = settlement - fee - costs - reduced medical bills - reduced liens
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How to use this calculator
- Settlement amount ($). Enter your own figure; the page starts at $85,000.
- Contingency rate (%). Enter your own figure; the page starts at 33.33%.
- Case costs advanced ($). Enter your own figure; the page starts at $6,800.
- Medical bills outstanding ($). Enter your own figure; the page starts at $24,000.
- Reduction negotiated on bills (%). Enter your own figure; the page starts at 35%.
- Health plan or government lien ($). Enter your own figure; the page starts at $5,500.
The result updates as you type, so you can try a figure, see what it does to client receives, and change it back. Nothing you enter is sent anywhere or saved.
A worked example
These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.
What goes in
| Input | Value |
|---|---|
| Settlement amount | $85,000 |
| Contingency rate | 33.33% |
| Case costs advanced | $6,800 |
| Medical bills outstanding | $24,000 |
| Reduction negotiated on bills | 35% |
| Health plan or government lien | $5,500 |
| Reduction on that lien | 33% |
What comes out
| Result | Value |
|---|---|
| Client receives main result | $30,585 |
| Attorney fee | $28,331 |
| Medical bills after reduction | $15,600 |
| Lien after reduction | $3,685 |
| Saved through negotiation | $10,215 |
| Client share of settlement | 35.98% |
The client receives $30,585, 35.98% of the settlement. Negotiating the medical bills and lien down put $10,215 back in their pocket, which is often the most valuable work in the matter.
How sensitive the answer is
Holding everything else steady and changing only settlement amount, this is what happens to client receives. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Settlement amount ($) | Client receives |
|---|---|
| $42,500 | $2,250 |
| $63,750 | $16,417 |
| $85,000 example above | $30,585 |
| $127,500 | $58,919 |
| $170,000 | $87,254 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Settlement amount ($)
- A money amount, starting at $85,000.
- Contingency rate (%)
- A percentage, between 0 and 50, starting at 33.33%.
- Case costs advanced ($)
- A money amount, starting at $6,800.
- Medical bills outstanding ($)
- A money amount, starting at $24,000.
- Reduction negotiated on bills (%)
- A percentage, between 0 and 100, starting at 35%.
- Health plan or government lien ($)
- A money amount, starting at $5,500.
- Reduction on that lien (%)
- A percentage, between 0 and 100, starting at 33%.
What the results tell you
| Result | What it is |
|---|---|
| Client receives | The headline result. A money figure. |
| Attorney fee | A money figure. |
| Medical bills after reduction | A money figure. |
| Lien after reduction | A money figure. |
| Saved through negotiation | A money figure. |
| Client share of settlement | A percentage. |
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