Tag: settlement money

Winning or settling a case can feel like the finish line. In reality, the moment a settlement is reached is often the start of a separate money process. The check has to be issued, deposited, cleared, reviewed, reduced by approved deductions, and finally disbursed.

That gap can make people nervous. If you settled a personal injury case, employment dispute, property damage claim, or other civil matter in West Virginia, you may be wondering why the money is not already in your account. The answer depends on the terms of the settlement, the lawyer’s fee agreement, any liens or third-party claims, and whether anyone disputes how the money should be divided.

The Settlement Amount Is Not Always the Client’s Final Amount

The number people remember is usually the gross settlement. That is the total amount the other side agreed to pay. But the gross number is not always the amount the client receives.

Before money reaches the client, several categories may need to be addressed:

• attorney fees under the fee agreement,
• case expenses advanced by the lawyer or firm,
• medical liens or reimbursement claims,
• court costs, filing fees, expert fees, or record charges,
• disputed amounts that may need to stay in trust temporarily, and
• the client’s final net recovery.

That is why the final check can be smaller than the headline settlement figure. The practical question is not just, “How much did we settle for?” It is, “What deductions are being made, why, and where is the written breakdown?”

Why Settlement Money Often Goes Through a Lawyer First

In many cases, settlement funds are sent to the attorney or law firm rather than directly to the client. That does not mean the lawyer owns the money. It usually means the lawyer has responsibility for receiving the funds, depositing them properly, resolving deductions, and distributing the correct shares.

When money belongs partly to the client and partly to others, it is commonly handled through a trust account. A trust account is designed to keep client and third-party money separate from the lawyer’s own operating funds. That separation matters. Settlement money should not be treated like the lawyer’s ordinary business revenue until fees are earned and properly withdrawn.

For a deeper explanation of the lawyer’s role, read Can a Lawyer Take Your Settlement Money in West Virginia?.

The Basic Settlement Money Timeline

Every case is different, but a typical path looks like this:

1. The parties agree to settle.
2. The settlement agreement and release are prepared.
3. The client signs the release.
4. The paying party or insurance company issues the check.
5. The check is received and deposited.
6. The funds clear.
7. Attorney fees, expenses, liens, and disputed claims are reviewed.
8. The client receives a settlement statement and final payment.

Some cases move quickly. Others slow down because the release language is disputed, a lienholder has not responded, a medical provider is claiming reimbursement, or a fee dispute must be resolved before all funds can be released.

Common Reasons Settlement Checks Are Delayed

A delay does not automatically mean something is wrong. Some delay is normal. Common reasons include:

• the release has not been signed,
• the insurance company has not issued the check,
• the check has not cleared,
• medical bills or liens are still being negotiated,
• Medicare, Medicaid, or another payer may need to be addressed,
• attorney fees or costs are disputed, or
• the lawyer is waiting for final written payoff amounts.

Still, clients should not be left in the dark. If weeks pass without a clear explanation, it is reasonable to ask for a status update and a written accounting. For more detail, see Why Is My Settlement Check Delayed?.

Who Gets Paid First?

Settlement distribution is often a waterfall. The exact order depends on the case, the fee agreement, and any valid claims against the settlement. But in many situations, the process includes attorney fees, case expenses, liens or reimbursement claims, and then the client’s net proceeds.

This can frustrate clients because the settlement was their case and their injury. But if fees, costs, or liens are valid, they may need to be handled before the client receives the final balance. The important thing is transparency: the client should be able to understand the gross amount, each deduction, and the final net payment.

For a more focused breakdown, read Who Gets Paid First From a Settlement?.

What If You Disagree With a Fee or Deduction?

Fee disputes can slow distribution. If a client agrees that part of the money should be paid out but disputes another part, the disputed portion may need to remain in trust while the disagreement is addressed. The undisputed portion may be easier to release, but that depends on the facts and the lawyer’s obligations.

The first step is usually to request the fee agreement, settlement statement, cost ledger, and written explanation. A client should not have to guess why money was withheld. If the dispute cannot be resolved informally, the client may need legal advice or may consider professional complaint options depending on the facts.

For more on this issue, see What If You Disagree With Your Lawyer About Fees?.

What Clients Should Ask For

If you are waiting on settlement money, ask direct, practical questions:

• Has the release been signed by everyone who needs to sign?
• Has the settlement check been issued?
• Has the check been received and deposited?
• Have the funds cleared?
• Are any liens, bills, or reimbursement claims still unresolved?
• What attorney fees and case expenses are being deducted?
• Can I receive a written settlement statement?
• When should I expect the final disbursement?

Good communication does not eliminate every delay, but it can separate normal processing from a potential red flag.

The Bottom Line

Settlement money does not always move instantly. Fees, liens, trust accounting, bank clearance, and paperwork can all affect timing. But clients are entitled to understand what is happening. If the explanation keeps changing, the numbers do not make sense, or no written accounting is provided, it may be time to ask harder questions.

This article is for general informational purposes only and is not legal advice. Court rules, statutes, lien rights, and professional duties can change. For advice about a specific settlement, fee dispute, or case, talk to a licensed West Virginia attorney.