After negotiations have ended and all parties involved have agreed on a settlement, there are many procedural steps that still need to occur. One important consideration at this stage is determining the total taxable amount of the settlement.
Typically, damages received for physical injuries are not taxable, but a plaintiff may be responsible for paying taxes on other portions of the funds. An experienced lawyer may be able to help their client better understand potential tax liability. In most cases, settlement checks are sent to the victim’s attorney, who then manages the final disbursement of the funds.