Who Gets Paid First in a Personal Injury Settlement?
Gregg Hollander | January 27, 2026 | Uncategorized
Understanding how settlement money is distributed can help set realistic expectations after a personal injury case resolves. Many clients want clear answers to questions like who gets paid first in a personal injury settlement and how long does it take for funds to clear after settlement? Florida law follows a structured process designed to ensure transparency, satisfy legal obligations, and protect the injured person’s financial interests.
How Settlement Funds Are Distributed
Clients often ask who gets paid first in a personal injury settlement? When a personal injury case settles, Florida law requires the funds to be distributed in a specific order. First, attorney’s fees are deducted, which are typically 33⅓ or 40 percent depending on the stage of litigation. Next, any outstanding medical bills, hospital liens, or insurance subrogation claims are paid. After that, the firm is reimbursed for case costs such as filing fees, depositions, and expert witnesses. What remains is your net settlement, and the net settlement belongs entirely to you.
In medical malpractice and other complex cases, the settlement disbursement must be reviewed and approved by a judge. We provide each client with a full written accounting that shows every fee, cost, and lien payment. Nothing is hidden or assumed.
Special Rules for Minors and Protected Clients
If the settlement involves a minor or someone with limited capacity, Florida law requires those funds to be placed in a guardianship account or special-needs trust. This ensures long-term protection and compliance with public benefit programs.
How Long Does It Take for Funds to Clear After Settlement?
Clients often ask how long does it take for funds to clear after settlement? After the settlement agreement is signed, insurance companies typically issue payment within two to four weeks. The check is made payable to both the client and the law firm’s trust account, as required by the Florida Bar. Once deposited, banks generally hold the funds for three to five business days before they clear.
Why Might Your Settlement Payment Be Delayed?
Delays may occur when verifying medical liens, waiting on final billing statements, or securing judicial approval. Funds cannot be released until every lienholder is satisfied and all paperwork is finalized.
What Clients Can Expect From Settlement to Payment
The entire process from settlement to check in hand typically takes three to six weeks. Throughout that time, we keep clients informed and provide written updates so they know exactly when to expect payment.
Speak With the Hollander Law Firm About Your Settlement
If you still have questions about who gets paid first in a personal injury settlement or how long does it take for funds to clear after settlement, the Hollander Law Firm can help. We provide clear explanations, written accountings, and straightforward guidance at every stage of the settlement process. Consultations are confidential and free, and you will never pay upfront fees or costs. Contact the Hollander Law Firm to discuss your case and get clear answers before your settlement is finalized.