How Much of My Settlement Do I Actually Keep?
Your net recovery is the settlement minus three things: the attorney fee (a percentage set in your written agreement), case costs, and medical liens. In California all three are knowable and two are negotiable — a competent firm negotiates liens down at the end, which directly increases what you take home.
Want the math for your case? Ask — 24/7.
Se habla español — Llama Me. No out-of-pocket fees — we work on contingency.
What comes out of a settlement before I get paid?
Three deductions, in order: the contingency fee, case costs, and medical liens or reimbursement claims. Everything else is yours.
The contingency fee and how costs are treated must be spelled out in your written fee agreement — California law requires it (Bus. & Prof. Code § 6147). Full fee breakdown: How much do car accident lawyers charge?
What are medical liens and why do they matter so much?
A lien is a legal claim against your settlement by whoever paid for or provided your treatment — a lien doctor, a hospital, your health plan, or Medi-Cal/Medicare. Liens are usually the largest deduction after the fee, and unlike the fee, most people don’t see them coming.
Can liens be negotiated down?
Yes — routinely. Lien holders would rather take a reduced amount now than fight. Lien negotiation happens after settlement, invisibly to most clients, and it is one of the places representation most directly changes your net.
Do costs come out before or after the fee is calculated?
Whichever your fee agreement says — § 6147 requires the agreement to state it. The order changes your net: a fee calculated on the gross settlement before costs leaves you less than one calculated after. Ask the question before signing; a firm that won’t answer it plainly is telling you something.
Why are my medical damages based on less than the billed amount?
Because California measures medical damages by what was actually paid or is actually owed, not the provider’s sticker price (Howell v. Hamilton Meats (2011) 52 Cal.4th 541). A $90,000 hospital bill that your insurance settled for $14,000 supports $14,000 in damages. This is the single most misunderstood number in injury cases.
Can my lawyer walk me through the numbers before I accept?
They must. Before you accept any settlement, you’re entitled to a closing statement showing the settlement, the fee, itemized costs, each lien and its negotiated amount, and your net. Never approve a settlement without seeing that sheet — and any firm, including ours, should give it to you without being asked.
Ask for the closing-sheet walkthrough before you accept anything.
Se habla español — Llama Me. No out-of-pocket fees — we work on contingency.
