Can I Sell a Workers' Compensation Structured Settlement?
Quick Answer
Yes, workers' compensation structured settlements can be sold in most states, but some states restrict or prohibit it. States that restrict workers' comp settlement sales include Wisconsin, New Hampshire, and portions of other states' laws. Where allowed, the process is the same as selling other structured settlements court approval is required.
Key Statistic
Workers comp sales: allowed in 40+ states
Expert Analysis
Workers' comp settlements have special considerations: Tax treatment: Workers' comp structured settlement payments are tax-free (both periodic payments and lump sum from selling). This is one advantage over other types. State restrictions: Some states (Wisconsin, New Hampshire, and a few others) have additional restrictions or outright bans on transferring workers' comp structured settlements. Check your specific state's laws. Court scrutiny: Judges may apply extra scrutiny because workers' comp settlements were specifically designed to provide ongoing income during disability. Demonstrate that selling won't leave you without means to support yourself.
If your state restricts the sale: You may still be able to sell if you've relocated to a state that allows it and file there. Consult with an attorney specializing in structured settlement transfers. Some buyers specialize in workers' comp transfers and know the specific legal pathways.
Key tip: Workers' comp settlements often have 'life-contingent' payment structures, which get lower offers than 'period-certain' payments. If your settlement has a guaranteed minimum period, make sure the buyer is pricing based on that guaranteed period, not the life-contingent aspect.
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