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Professional services

Law Practice Settlement Fee Calculator

A settlement distribution for a small practice, showing what the client receives and why.

Your numbers

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Result

Client receives $31,402
Fee $23,998
Liens after reduction $11,200
Saved for the client $4,800
Client share of settlement 43.61%
The client receives $31,402, 43.61% of the settlement, after a $23,998 fee and liens reduced to $11,200. Negotiating those liens put $4,800 back in their hands.

Business arithmetic for running a practice, not legal advice. Fee agreements, contingency limits, trust accounting and advertising are all governed by the rules of professional conduct where you practise, and several are strict. Check the applicable rules before any of this affects a client agreement or a marketing decision. A written, itemised distribution statement signed by the client is required in most jurisdictions. Lien resolution follows different rules for statutory liens, plan claims and government interests, and mishandling them creates personal exposure. This distributes a known figure and does not estimate what any claim is worth.

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Questions

About this calculator

Why does lien negotiation matter more than a slightly larger settlement?

Because reductions come off the client's share entirely, while extra settlement is shared with the fee. Reducing a lien by five thousand is worth more to the client than five thousand more in gross recovery.

Does the client have to approve the distribution?

In most jurisdictions yes, in writing and itemised. It is a formal requirement, not a courtesy.

The formula

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

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