Inputs first
Results begin with information selected or entered by the user. We do not treat an estimate as verified fact.
How Our Estimates,Classifications and AI Work
Our methodology explains the formulas, assumptions, source hierarchy, AI safeguards, editorial standards and limitations behind Settlement Decisions tools.
Last reviewed: September 12, 2026
Direct answer
Settlement Decisions calculators provide educational estimates, not offers. Mathematical tools use user-entered values and disclosed formulas. Classification tools use fixed server-side rules. Groq AI may personalize explanations, but it cannot change protected results or guarantee legal eligibility, tax treatment, transaction terms or court approval.
Core principles
Four standards applied across our tools
Rules before AI
Protected legal, tax and eligibility categories are controlled by deterministic server-side logic.
Sources disclosed
Important legal explanations link to statutes, agencies or official technical documentation.
Limits displayed
Tools disclose that results are educational and require document and professional review.
Present-value methodology
How future payments are discounted
A dollar scheduled for the future is not treated as equal to a dollar available today. Present-value tools discount each scheduled payment according to its amount, timing and an assumed annual discount rate.
Present value = Σ Paymentt ÷ (1 + r)time until payment
Payment amount
The scheduled dollar amount associated with each future payment date.
Payment timing
Payments farther in the future receive a larger time-value adjustment.
Assumed rate
A higher assumed discount rate produces a lower estimated present value.
Present value is not the same as a purchase offer. Actual terms can reflect payment certainty, timing, transaction expenses, underwriting, court requirements, market conditions and the purchaser’s review.
Tool-by-tool disclosure
What each result represents
Valuation Calculator
→Discounted present-value estimate using payment amount, timing and assumed discount-rate inputs.
Advanced Calculator
→Compares multiple discount-rate and payment-stream scenarios rather than presenting one guaranteed value.
Scenario Modeler
→Compares keeping, full-sale and partial-sale scenarios using the selected payment assumptions.
Annuity Value Analyzer
→Estimates present value from scheduled payments and timing assumptions; AI may explain but does not create an offer.
AI Offer Analyzer
→Compares an entered offer with payment value and implied discount-rate information.
Net Proceeds Calculator
→Subtracts user-entered obligations and expenses from an entered gross purchase price.
Tax Checker
→Uses rule-based federal classifications based on the payment purpose and selected components.
Document Readiness Checker
→Uses disclosed document availability and special circumstances to generate a preparation checklist.
Payment Eligibility Checker
→Uses protected server-side rules to classify payment types; AI cannot override the classification.
Court Approval Predictor
→Educational scenario analysis based on entered circumstances and state-level process information—not a prediction by a court.
State Laws Explorer
→Organizes state-specific educational information and should be verified against current official state sources.
Payout Map
→Provides geographic comparison context using disclosed assumptions; it does not establish an available offer.
Company Match
→Matches selected preferences to comparison criteria and does not guarantee acceptance or transaction terms.
Buyer Ratings
→Presents disclosed review and comparison criteria; users should independently verify licensing and current company information.
Market Dashboard
→Displays market-oriented educational indicators and update dates; displayed rates are not binding offers.
Net proceeds
Arithmetic, not lien priority
Estimated net = gross price − entered obligations − entered expenses
The Net Proceeds Calculator subtracts only the values entered by the user. It does not decide whether a claimed debt is a valid lien, which property it reaches, its priority, or whether it must be paid from a transaction.
Readiness and eligibility scores
Educational indicators, not approval odds
Readiness scores summarize the availability of commonly requested records. Eligibility scores summarize whether a selected payment category is commonly reviewed. Neither score is a statistical probability, underwriting decision, legal opinion or prediction of court approval.
Source hierarchy
Sources are not treated equally
Level 1
Primary legal authority
Federal and state statutes, regulations, official court materials, government forms and agency publications.
Examples: U.S. Code, IRS publications, official state legislatures and published court resources.
Level 2
Official operational guidance
Government instructions, official agency explanations and technical documentation from the service being described.
Examples: IRS form instructions, Groq API documentation and official state court instructions.
Level 3
Secondary explanation
Reputable educational materials used to improve clarity, not to override controlling legal authority.
Examples: Educational references, professional commentary and clearly identified third-party resources.
Groq AI policy
AI explains; protected rules decide
AI may
- • Personalize a plain-language explanation.
- • Organize fixed results into readable next steps.
- • Summarize user-selected, non-contact information.
AI may not
- • Change a protected eligibility classification.
- • Guarantee tax treatment, an offer or court approval.
- • Replace review by a qualified professional.
AI-assisted tools use the Groq Chat Completions API through a server-side environment variable. The API key is not sent to the browser. Where implemented, deterministic fallback results remain available if the AI service is unavailable, times out or returns an invalid response.
Groq Chat Completions documentationPrimary references
26 U.S.C. § 5891
Structured settlement factoring transactions and qualified orders.
26 U.S.C. § 104
Federal treatment of qualifying injury, sickness and workers’ compensation payments.
IRS settlement guidance
IRS explanation of settlement and judgment tax treatment.
IRS Publication 4345
Federal educational publication concerning settlement taxability.
42 U.S.C. § 407
Social Security transfer and assignment restrictions.
29 U.S.C. § 1056
Selected pension-plan payment and anti-alienation provisions.
Review and correction policy
- • Material legal and technical sources are reviewed when significant changes are identified.
- • Pages should display a reviewed or modified date where that date is relevant to the information.
- • Corrections should preserve accurate citations and avoid silently changing the meaning of historical claims.
- • Readers may report factual, calculation, citation or accessibility concerns.
Referral compensation
SettlementDecisions.com may receive compensation from DRB Capital, LLC for qualified referrals. DRB Capital determines whether it can consider a transaction and any actual terms after reviewing the payment rights and circumstances.
Calculator estimates, educational classifications, tool order and methodology disclosures are not purchase offers and do not guarantee acceptance, pricing, timing or court approval.
Important limitations
Tools cannot verify documents that were not provided and reviewed by an appropriate professional.
Illustrative discount rates and estimated values are not binding purchase terms.
State law, court practice and document requirements can change.
Tax classifications do not calculate a user’s tax liability.
Eligibility and readiness scores are not statistical probabilities.
AI-generated explanations may be simplified and should be checked against cited primary sources.
Methodology questions
Are calculator results actual offers?
No. Results are educational estimates. An actual offer can be issued only after a purchaser reviews the payment rights, documents and transaction circumstances.
Can Groq AI override an eligibility result?
No. Protected eligibility classifications are controlled by fixed server-side rules. AI may improve the explanation but cannot change the protected result.
Why can two tools show different values?
Different tools may use different payment schedules, dates, discount-rate assumptions, sale portions or user inputs. Compare the disclosed inputs before comparing outputs.
How do I request a correction?
Email contact@settlementdecisions.com with the page URL, disputed statement and a supporting primary source when possible.
Educational information only—not legal, tax, investment or financial advice.