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Originally Posted by Tidybuoy View Post
5) My lawyer is a great friend and lawyer but her specialty is not labor law, so I am trying to research as much as possible - this is my responsibility as far as i am concerned.

Any advice would be appreciated.
First, good for you for looking like you will settle the case.

Second, I'm surprised that you feel that determining the tax consequences of the award are "your responsibility". You're (presumably) not a tax lawyer or accountant, so why would you think that it's appropriate that you become an "expert" in this situation?

Does this case involve issues that are really outside your lawyer's area of competence and expertise? It could be that the amount at stake was relatively small and your lawyer friend thought she could handle it. But the tax consequences of the award are a major part of the settlement decision! The way the settlement is structured has the potential to cause significant consequences for your tax situation! If the settlement is not structured appropriately you could be getting much less money than you think.

You have the ultimate responsibility to instruct your lawyer as to whether to accept a settlement or not. In order to do that, you have to know how much you are going to clear. If you are uncertain of the tax consequences of the structure, you will not have this vital information. Your lawyer has the responsibility to ensure that you have the necessary information to make this decision - she is risking malpractice if she doesn't. Make sure she is aware that you do not take responsibility for figuring out the tax implications of the settlement. This is a legal responsibility.

Regards,

d.
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Old 08-11-2011, 11:25 AM
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