Cash timing
Settled is not deposited
Model the gap between a settlement agreement and a fee in the operating account, stage by stage.
The celebration comes before the cash
A mediated settlement changes the probability of a fee, not the bank balance. Releases must be executed, the defense must issue payment, and settlement funds generally pass through the client trust account before the fee can be transferred.
Liens are often the longest step. Medicare, for example, requires repayment of conditional payments from a settlement, and its recovery process involves requesting a final demand before the amount owed is settled.
Track stages, not hopes
Instead of one generic delay, assign each settled matter a stage with its own expected timing. JusticeCFO's defaults range from about 90 days at offer accepted to about 5 days once funds clear trust. They are planning defaults — replace them with your firm's observed days per stage.
- Offer accepted (~90 days)
- Release signed (~60 days)
- Liens being negotiated (~45 days)
- Liens resolved (~20 days)
- Funds cleared trust (~5 days)
Why it matters
Payroll and trial budgets are paid in specific months. Moving a large fee one quarter later can turn a comfortable forecast into a breach of the firm's minimum. Stage-based timing makes the near-term forecast honest.