Lack of Planning Can Result in Poor SettlementsMichael Gillen and Barbara A. Ruth
June 5, 2008 — 829 views
The federal tax treatment of litigation settlements or judgments and related legal fees can have a significant impact on the net value of a settlement or award. Ideally, tax consequences should be considered from day one of the litigation process. While proper planning can make a good settlement better, failure to adequately plan can transform an otherwise good settlement into a bad one or make a bad settlement even worse.