What is a structured settlement?

A payment of a settlement in installments over a period of time.

Ordinarily, when you settle a lawsuit or win a judgment, the defendant pays you in one lump sum. In certain circumstances, though, it makes more sense to have a settlement paid in installments over time. For example, where there has been a catastrophic injury and there will be a need to pay for future medical expenses, a structure settlement may make more sense.