Read the settlement statement and net payment

By Jacob Alford

Why is the amount I receive smaller than the settlement?

The gross settlement is the total recovery being accounted for. Your net payment is what remains for you after authorized fees, case expenses, repayments and other lawful deductions or holds. You should be able to follow the arithmetic and identify the document supporting each deduction.

Ask for a proposed closing statement early enough to use it when evaluating the offer. A rough estimate is useful, but label it as an estimate and identify the numbers that can still change. Check whether multiple settlements or prior advances are being combined or counted separately.

How do I check fees and itemized case expenses?

Start with the fee agreement you signed. It should explain the percentage, when it changes, which case expenses are charged and whether the fee is calculated before or after expenses. Compare those terms with the closing statement so you can follow the money from the total recovery to your payment. Texas Rule 1.04.

Compare the closing statement with your signed agreement and any amendments. Ask for the expense ledger and an explanation of unfamiliar entries. Check whether a charge was advanced by the firm, already paid by you, included elsewhere or credited back. If more than one firm is involved, ask how the total fee and any separate claim to fees are accounted for. A division between firms should not be mistaken for an unexplained additional fee.

On InjuredTexan.com, Jacob Alford explains the gross-to-net calculation in this order: gross recovery; fee calculation; case expenses; provider payments and reimbursement claims; other authorized deductions; reserves; and proposed client distribution. The statement should reconcile to the actual money received, not just the amount once discussed in negotiation.

What money is being held and why?

First identify where the payment actually is. An agreement to settle, an issued check, money received in trust and money ready for distribution are different stages. Ask for a short written status covering the stage that is still open:

• Settlement conditions: Is a release, approval or another agreed step outstanding? What does the agreement say about payment? See the payment and settlement terms.
• Payer issuance and delivery: Who must send the money, has it been sent, to whom, and how can delivery be confirmed?
• Receipt and clearance: Has the lawyer received and deposited it? What remains before the funds can be disbursed?
• Deductions or reserves: What specific lien, fee interest or other claim is unresolved, and what amount is being held for it? See liens and repayment claims.
• Client distribution: Has the accounting been provided, what amount can be paid now, and what step remains for that payment?

For the open step, ask who is responsible, what information or action is missing, what agreed term applies and when you will receive the next update. A child, an estate or a court-approval requirement may change the path; confirm the required authority and approval. These stages do not establish a universal payment deadline.

A reserve may be needed while a specific claim to funds is unresolved. Ask for its amount, claimant, supporting basis and the work needed to resolve it. Do not accept “we are waiting on liens” as the only explanation indefinitely.

The amount in dispute stays in trust until the dispute is resolved. An undisputed amount can be released in the meantime. If the claimed lien amount is known, it may be possible to set that amount aside and distribute the rest. If the amount is still undetermined, the lawyer first needs enough information to know what can safely be released. Ask what amount is known, what is still being determined and when the next update is expected. Texas Rule 1.15(c).

What if I disagree with a deduction?

If you disagree with a deduction, identify it in writing and request the underlying agreement, invoice or payoff. Ask how the disagreement can be resolved and whether an undisputed distribution can proceed. Fee disputes, billing disputes and alleged professional misconduct are different issues. Ask which route addresses the particular disagreement. Do not sign an acknowledgment that the accounting is correct if you are still disputing it without understanding the effect.

Who receives payment for a child or estate?

A child’s money is not automatically payable to a parent for unrestricted use. An estate’s recovery is not automatically payable to the nearest relative. Authority, court orders, trusts, guardianships and the nature of the claim may control the recipient and how funds are held. Verify those directions with the person handling the child’s or estate’s matter before issuing or endorsing payment.

Keep the final statement, supporting payoff confirmations, proof of distribution and any later statement releasing a reserve. A final check should be accompanied by a final explanation.

Attorney reviewed by Jacob Alford · November 11, 2026