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Professional services

Law Firm Settlement Net Calculator

A full settlement distribution statement: fee, costs, liens and what reaches the client.

Your numbers

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Health plan, government, child support.
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Result

Client receives $70,000
Medical liens after reduction $13,500
Saved by negotiating liens $4,500
Total deductions $80,000
Client share 46.67%
The client receives $70,000, 46.67% of the gross. Negotiating the medical liens down saved them $4,500, which frequently matters more to the outcome than the last few thousand of settlement value.

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. A distribution statement is a formal document with specific requirements in most jurisdictions, and the client must receive and usually sign it. Lien resolution is a specialised area: statutory liens, ERISA plan claims and Medicare or Medicaid interests each follow different rules, and getting them wrong creates personal exposure.

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Questions

About this calculator

Why does lien negotiation matter so much?

Because it comes straight off the client's share. Reducing a medical lien by a third often puts more in a client's pocket than several thousand more in settlement would after fees.

Must the client approve the distribution?

In most jurisdictions yes, in writing, with an itemised statement. It is a formal requirement rather than a courtesy.

The formula

client net = settlement - attorney fee - costs - liens after reduction - advances

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