If you win a personal injury lawsuit, you can do so in one of two ways. You might force a settlement offer from the defendant that you can accept. However, you may also get a jury’s verdict in your favor that awards you some money in damages.
For instance, maybe you’re injured in a car accident. You’re in an at-fault state, and the other driver or their insurance company won’t admit that the other motorist caused the accident. You might sue them to collect the money to cover your economic and non-economic damages.
You may also sue a company that made a product that harmed you. Perhaps you’ll sue a doctor or medical facility if you allege that medical malpractice occurred. You may sue a dog’s owner if it bites you.
No matter the situation, if you can get some money in damages from a personal injury lawsuit, then you will need to figure out what to do with it. If you choose to spend it, then you might do so on something responsible, or perhaps not so much. Let’s talk about some possibilities for what you might do with your winnings.
You Might Use It to Buy a House
If you get money in damages following a personal injury lawsuit, then you will first need to use some of it to pay your lawyer. Usually, you will have a contingency payment plan set up with a personal injury attorney. Many of them will gladly set up such a payment plan because they know they can attract more clients when they do so.
Typically, such a plan means you will pay the lawyer anywhere from 30%-40% of your winnings. That might seem like a lot, but remember, you’re paying them for their expertise. Without that, you probably wouldn’t win your case at all.
After that, you may need to use some more of the money to pay off your outstanding medical bills, if you have any. If the defendant in the lawsuit injured you, then it’s very possible that you will have some.
Afterward, you can look at how much money you have left over. Maybe you will have hundreds, thousands, or even millions. That all depends on the lawsuit’s nature and how badly the defendant hurt you or how sick they made you.
Maybe you will use some of the remaining money or all of it to buy a house. If you lived in an apartment when the defendant hurt you or made you sick, then maybe you could never realistically afford a house before. Now, though, you realize that you have the cash to buy one.
Whether you have enough money to put a down payment on a house or you can pay off the whole thing with the money you collected, it behooves you to do so. Many individuals can never afford their own house during their adult life. It’s a logical way to spend the money.
You Can Use It to Pay Off Your Mortgage
Perhaps you already own a house, and you’re working to pay it off. You will do so via monthly mortgage payments.
Some individuals who own a home might live there for twenty years or more and never completely pay off the whole mortgage. They never reach a point where they own the home free and clear.
If you have a chance to pay off what remains of the mortgage with some of your winnings, then you might feel tremendously happy about that. It’s a special feeling to know that you own a home with no strings attached. You will probably still have to pay yearly property taxes and school taxes, but maybe you have enough money left over from the lawsuit so that you don’t have to worry about that for the next few years at least.
You Might Use It to Make Home Improvements
If you want to do something responsible or practical with the money, you might also use it to make some home improvements or repairs. As a homeowner, you will probably have a list of things that you would like to do around the house. Every year, you might do one or two of them if you can afford it.
If you have the cash windfall that comes from a personal injury settlement, though, or a jury’s verdict in your favor, then you might use some of the money to do a total tear-off and replacement of your roof if it’s not in very good condition. Maybe you will add a new deck to the backyard.
Perhaps you will add a fence around the backyard if you have a dog or some kids who like to run around back there. Maybe you will add a sump pump if you have a basement that floods periodically.
You Might Use It to Buy a New Car
Maybe you’ll decide that you will use that money to buy a new car. It’s another practical thing that might appeal.
If you have an older car, then swapping it for a new one can improve your life significantly. If you have a brand-new car, then it will probably have a multiple-year warranty on it. You likely won’t have to worry about it breaking down, either, since it has all-new parts.
You Can Use It to Take a Vacation
You may also think about using some of the money you collected in damages to pay for a nice vacation for you and your family. Granted, that’s not as responsible of a thing to do with the cash, but maybe you feel that you deserve it.
If you went through a long, drawn-out, painful trial process, then you might feel like you earned that vacation. Maybe you’ll go to London, Cancun, Tokyo, Hawaii, or anywhere else that appeals.
If you have enough money that you collected in damages, then maybe you can even do more than one of these things.
