No one wants to get a phone call that will change their lives forever. When a loved one dies due to someone else’s negligence, the pain is unbearable, and the emotional and financial toll on surviving family members can feel unjust and exhausting. You have to deal with your grief and mounting medical bills, insurance claims, funeral costs, and more.
While no amount of money can bring someone back, a wrongful death lawsuit can provide essential financial relief. One of the most common questions we hear at Lambrou Law Firm is: who actually receives the settlement money in a wrongful death lawsuit?
The answer depends on state laws, the family structure, and the specific circumstances of each case. Below, we explain how wrongful death settlements are typically divided and what factors influence that distribution.
Who Receives a Share?
In a wrongful death case, the parties entitled to a portion of the settlement are generally those who had a legal or financial relationship with the deceased. The following individuals are usually eligible:
- Surviving spouse: Normally receives the largest share (especially if there are no children);
- Children: Their share can be split equally, by age or dependency, or allocated per state statutes;
- Parents: In some jurisdictions, parents can claim damages for the emotional loss of a child;
- Other dependents: Siblings, grandparents, or relatives financially dependent on the deceased;
- Estate beneficiaries: May go to those named in the will or to heirs under the state’s intestacy laws.
How Settlements Are Divided
The settlement is not always divided evenly among eligible survivors. There are several common methods courts and families use to allocate the funds.
Statutory Distribution
Some states, such as New Mexico, Vermont, and New York, have set formulas that automatically dictate how a settlement is split. For example, in New York:
- If no children, the surviving spouse receives 100%;
- If there are children, the spouse receives $50,000 and one half of the balance. The other half is distributed equally to the children;
- If there is no spouse, the children divide the settlement equally;
- If there are no spouses or children, the surviving parents receive the settlement.
Need-Based Distribution
Courts may consider how much each survivor depended on the deceased for financial and emotional support, rather than strictly by statutory shares or equal per capita amounts. In needs-based distribution, minor children, disabled relatives, or a surviving spouse who was a homemaker may receive a larger share. Here’s how it typically works:
- Assessment of Dependence: The court or parties involved considers who was financially dependent on the deceased;
- Evaluation of Loss: Those who suffered a greater loss of support or who have greater ongoing financial needs may receive a larger share;
- Outstanding Debts and Expenses: The distribution may also account for outstanding debts, medical bills, funeral costs, and other expenses incurred as a result of the death.
For example, a surviving spouse who was the primary breadwinner and has minor children may receive a larger share. Adult children who are financially independent may receive a smaller portion or none at all if the court determines they suffered less financial harm.
Family Agreement
Families can agree among themselves on how to divide the money. We know this can be a delicate subject, with many family members feeling the loss of the deceased heavily. However, it’s best that this agreement must be approved by the court and should be documented to avoid disputes. This requires mutual consent from all eligible survivors. Often, an attorney like Lambrou Law can help facilitate negotiations and ensure every party’s rights and interests are represented. Then, the attorney drafts a proposed distribution plan that reflects the family’s consensus.
Even when the family agrees, this document must be approved by the court. This ensures that all parties receive a fair agreement, especially minor children and other vulnerable beneficiaries.
Court Decision
If the family cannot reach an agreement, the court will make the decision. Judges typically consider:
- Financial dependency;
- Emotional relationship;
- Contribution to the household;
- Level of loss suffered.
How the Money Is Distributed
Once the court or family determines who gets what, the next step is the actual disbursement. The process depends on whether there is a family agreement, a court ruling, or a will. The timing for this varies greatly, from several months to over a year, once the settlement is reached. The timeline depends on factors such as court approval, requirements, estate complexity, if the beneficiaries are minors, and if there are disputes among heirs.
Family Agreement
If survivors agree on a split, the court will usually approve and enforce it. This is often the simplest path, minimizing delays and legal costs.
Court Decision
If there is no agreement, the judge will step in. The money is then distributed according to the court’s order and may be placed in:
- Lump-sum payments;
- Structured settlements (especially for minor children);
- Trust accounts to manage funds responsibly.
Will or Intestacy Laws
If the deceased had a will, the settlement may pass through the estate and be distributed to named beneficiaries. Without a will, the state’s intestacy laws apply, which often follow a fixed order of priority among relatives.
Lambrou Law Can Help You Seek Justice and Financial Relief
At Lambrou Law Firm, we understand how devastating it is to lose a loved one unexpectedly. That’s why we have dedicated our careers to helping families secure the compensation they deserve. With more than two decades of personal injury experience, we’ve successfully recovered as much as $3 million in individual wrongful death settlements for our clients.
With jurisdiction in New York, New Jersey, Pennsylvania, and Florida, our attorneys can stand by your side, handling every legal detail so you can focus on healing. Let us fight for your rights and help you ease the financial burdens that follow such a profound loss.
If you are coping with the wrongful death of a loved one and want to understand your options, schedule a free consultation with Lambrou Law today.
