Settlement Decisions
State law explorer · all 50 states

Structured settlement laws by state

Every sale needs a judge’s approval under your state’s Structured Settlement Protection Act. Pick your state to see the court process, timelines, cancellation rights and advice rules that apply to you.

Med F., Settlement AnalystUpdated October 29, 2026

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Includes statute citation and court notes

Pick a state above to see its rules.

States with a green dot include the statute citation and court notes.

Same everywhere

The court approval process in five steps

Disclosure

The buyer gives you the discount rate, fees and net amount in writing.

Waiting period

You get time to think and the right to cancel.

Petition filed

The buyer files in your county and notifies interested parties.

Hearing

The judge decides if the sale is in your best interest.

Funding

Cash is sent after the signed court order.

Read more in the court approval process and the Protection Act explained.

Quick answer

Do you need court approval to sell a structured settlement in every state?

In practice, yes. Nearly every state has a Structured Settlement Protection Act requiring a judge to approve the transfer, and federal law (26 U.S.C. § 5891) imposes a 40% excise tax on the buyer if a transfer happens without a qualified court order.

What varies by state is the waiting period after you receive the disclosure, which court hears the case, and whether you must get independent professional advice or may waive it.

FAQ

Frequently asked questions

What is a Structured Settlement Protection Act?
It is a state law that requires a judge to approve any sale of structured settlement payments. Nearly every state has one. They require written disclosure of the discount rate and fees, notice to interested parties, and a finding that the sale is in your best interest.
Are the rules the same in every state?
No. Waiting and notice periods, cancellation rights, whether independent professional advice is required, and where the petition is filed all vary. Use the explorer above to see the rules where you live.
Can a court deny my transfer?
Yes. Judges can deny a petition if the seller can't show a real need, the discount rate looks unreasonable, the disclosures were incomplete, or the sale would harm dependents. The court approval check tool walks through these factors.
Do I need a lawyer to sell my structured settlement?
Most states don't require you to hire one, but some require independent professional advice from a lawyer, accountant or financial advisor. Even where it's optional, an independent review can protect you.
Can I sell my structured settlement without going to court?
No. Federal law (IRC Section 5891) imposes a 40% excise tax on buyers who skip a qualified court order, so legitimate buyers always go through court. Be wary of anyone who says otherwise.
How long does court approval take?
Usually 45 to 90 days from signing to funding, depending on your state's notice period and the court's calendar.

Keep going

Other free tools

Eligibility checkerCan your payment type be sold?
Tax checkerWhich parts of your settlement are taxable.
Document checklistThe papers a buyer and court will ask for.
Rate trackerToday's Treasury rates and what they mean for offers.

State rules summarized here are for general education and may change. They are not legal advice. Confirm current requirements with the court or a licensed attorney in your state before you sell.