How is a car accident settlement paid out in Nevada, and what comes out of the check?

Last updated October 18, 2026.

When a Nevada car accident claim settles, you sign a release, the insurer issues the payment, and if you have an attorney the money goes into the attorney's client trust account. From there, the attorney's fee and case costs set by your written agreement, valid liens and other agreed debts are paid, and the rest goes to you with a written statement showing every dollar. Nevada statutes and court rules set the order in a Las Vegas car accident claim.

People are often surprised that the settlement number and the check they take home are different. That gap is not a mystery, and it should never be a surprise. Each deduction has a source: a signed fee agreement, a statute, or a bill you agreed to pay from the recovery. This page walks through the path the money takes, what can and cannot be taken out, and what you are entitled to see in writing.

How does a settlement get paid out, step by step?

This is the usual order once you and the insurer agree on a number.

You sign the release. The insurer sends a release, and payment usually follows once the signed release is returned. Read what it says about liens and who is released before you sign; our page on what a settlement release gives up covers the traps.
The insurer pays. Where a hospital has served a notice of lien, the insurer has to account for it. If the hospital is publicly owned or not for profit, the payer must pay it by a separate check or an allowed electronic transfer (NRS 108.650(2)).
The money goes into a trust account. An attorney must hold client funds separate from the attorney's own property, in an identifiable trust account, and keep complete records for five years after the representation ends (Nevada RPC 1.15(a)).
You are notified. When an attorney receives money in which you have an interest, the attorney must promptly notify you (RPC 1.15(d)).
Liens and claims are confirmed and paid. Hospital, Medicaid and workers' compensation claims are checked against the statutes that limit them, reduced where the law allows, and paid. Medicaid's lien must be satisfied when proceeds are distributed, unless it has been reduced (NRS 422.293(3), (4)).
Disputed amounts stay in trust. If you and a lienholder disagree about an amount, that portion stays separate until the dispute is resolved, and the undisputed portions must be distributed promptly (RPC 1.15(e)).
You receive your share and a written statement. At the end of a contingent fee matter, the attorney must give you a written statement of the outcome and, if there is a recovery, showing the remittance to you and how it was calculated (RPC 1.5(c)). You can also ask for a full accounting at any time (RPC 1.15(d)).

What can come out of the check, and what limits each item?

Not every claim against the money is valid, and the valid ones often have ceilings. This table summarizes the main Nevada rules.

Deduction	Where it comes from	Nevada limit or rule
Attorney's fee	Your written, signed contingent fee agreement	Must state the method and percentage for settlement, trial or appeal, in boldface type (RPC 1.5(c)); the attorney has a lien for the agreed fee (NRS 18.015(2))
Case costs and expenses	The same agreement	Must say whether expenses come out before or after the fee is calculated, and whether you owe them regardless of outcome (RPC 1.5(c)(2), (3))
Hospital lien	A recorded and served notice of lien	Reasonable value of care before settlement; no lien against necessary attorney's fees and costs (NRS 108.590, 108.600); capped at 55 percent of billed charges if you may be eligible for Medicaid, Medicare, CHIP or another public program (NRS 108.655)
Medicaid	The Nevada Health Authority's lien on the recovery	Satisfied at distribution unless reduced in consideration of the attorney's services (NRS 422.293(3), (4))
Workers' compensation	The workers' comp insurer's lien when you were hurt on the job	The lesser of the lien or one-third of the total recovery, reduced by half of your reasonable costs (NRS 616C.215(7))
Other medical providers and health plans	Unpaid bills, signed lien letters, or plan repayment terms	Depends on the agreement or plan; ask each one for a written, itemized payoff
Child's settlement	District court approval	The petition must show fees, medical expenses and other expenses; net proceeds over $2,500 go into a blocked account (NRS 41.200(2), (5))

How do contingency fees and costs work in Nevada?

Many injury cases are handled on a contingent fee, meaning the fee depends on the outcome. Nevada requires that agreement to be in writing and signed by you, and it must state in boldface type at least as large as the largest type in the agreement: how the fee is calculated, including the percentage at settlement, trial or appeal; whether expenses are deducted from the recovery, and whether before or after the fee is calculated; whether you are liable for expenses regardless of outcome; and that a suit brought solely to harass or coerce a settlement can create liability for malicious prosecution or abuse of process (RPC 1.5(c)).

The agreement must also tell you that, if you lose, you may be liable for the other side's attorney fees and will be liable for its costs as required by law (RPC 1.5(c)(4)). Nevada's advertising rule puts it this way for any contingency fee statement: A client may be liable for the opposing parties' fees and costs. Our page on what a car accident lawsuit costs in Clark County explains when that can happen.

The before-or-after question matters more than people expect. Whether costs come out before the fee is calculated or after it changes the number you take home, so look for that sentence in your agreement and ask about it.

What changes the answer

Whether you may be eligible for a public program. If Medicaid, Medicare, CHIP or another public program may pay all or part of the hospital bill, the hospital's lien cannot collect more than 55 percent of its billed charges (NRS 108.655). See how hospital liens work after a Nevada crash.
Whether Medicaid paid. The recipient or the attorney must give the Nevada Health Authority written notice of the claim, and the Authority's deadline to act is tolled until it gets that notice (NRS 422.293001). The attorney may not raise or condition the fee on whether a reduction is granted (NRS 422.293(5)). Our page on Medicaid repayment from a Nevada settlement explains the request.
Whether you were working. A hospital lien is not valid against someone covered by Nevada's workers' compensation chapters (NRS 108.590(2)(a)), but the workers' comp insurer has its own lien, and the injured worker or attorney must notify it and pay it within 15 days after the proceeds are received, with an itemized statement of the distribution (NRS 616C.215(9)). Read how workers' comp and a crash claim fit together.
Whether Medicare paid. Medicare runs a Medicare Secondary Payer program so that it is not the first payer where another source should be. The Centers for Medicare & Medicaid Services says its Benefits Coordination & Recovery Center recovers Medicare payments in liability, no-fault and workers' compensation cases where the beneficiary must repay Medicare. If Medicare paid crash bills, get its claimed amount in writing before money is distributed.
Whether you owe child support. Nevada allows child support to be withheld from money due to a parent who owes it as a judgment or a settlement (NRS 31A.150(3)). Withholding to enforce a court order for child support has priority over any other proceeding against the same money (NRS 31A.160(1)).
Whether care continued after the settlement. No hospital lien is allowed for care provided after a settlement is reached (NRS 108.600(1)). Future care has to be planned for out of your share. Our guide to the damages you can recover after a Nevada car accident explains how future losses fit into a claim.
A minor. The court that approves the compromise directs where the money goes, and when the net proceeds are more than $2,500, the parent or guardian must file proof within 30 days of receiving them that the blocked account was opened (NRS 41.200(4), (5)). See court approval of a child's settlement. For a child who lives in Clark County, that hearing is in the Eighth Judicial District Court; our page on what to expect at the Regional Justice Center describes the building.
More than one source of money. A settlement with the at-fault driver's insurer and a later UIM payment from your own insurer may arrive months apart. Each one is a recovery that liens may reach, so plan the distribution for both. Our page on underinsured motorist claims in Nevada covers the second step. Riders often have several policies in play too; see what insurance covers a motorcycle rider in Nevada.

For example: where a hypothetical $60,000 settlement goes

Imagine a driver named Teresa. She is hit by a driver who ran a red light at Tropicana Avenue and Eastern Avenue, and she spends two nights at a Las Vegas hospital. She may be eligible for Medicaid, which paid some of her follow-up care. Her claim settles for $60,000. Every number here is hypothetical.

The hospital billed $30,000 and recorded and served a notice of lien. Because Teresa may be eligible for a public program, the hospital cannot receive more than 55 percent of its billed charges through the lien, so the most it can collect is $16,500 (NRS 108.655). Medicaid paid $4,000 for physical therapy, and Teresa's attorney sent the Authority the required notice early and asked for a reduction in light of the legal work (NRS 422.293, 422.293001).

The settlement goes into the attorney's trust account. First comes the fee and costs set by Teresa's written agreement, calculated the way the agreement says, before or after costs. Then the hospital and Medicaid are paid in the amounts finally agreed. While a dispute with one physical therapy clinic over its bill is worked out, that amount stays in trust, and everything undisputed is paid out (RPC 1.15(e)).

Teresa receives her check with a written statement listing the gross settlement, the fee and how it was calculated, each cost, each lien payment, and her net (RPC 1.5(c)). If she has questions about any line, she can ask for a full accounting (RPC 1.15(d)).

Common mistakes when a settlement is paid out

Paying liens you did not need to pay in full. The 55 percent cap and the Medicaid reduction only help if someone asks. Check each lien against its statute before paying.
Spending before liens are cleared. A lien does not disappear because the money reached you. Wait for the written statement and the payoff letters.
Not reading the fee agreement until the end. The cost and percentage terms are fixed in writing at the start (RPC 1.5(c)). Read them when you sign, not when the check arrives.
Forgetting the workers' comp notice. If you were on the job, the insurer must be notified in writing before a proceeding is started and paid within 15 days after recovery (NRS 616C.215(8), (9)).
Losing your own records. Keep the release, the payoff letters and the final statement. Our page on getting your medical records and bills helps you check each provider's balance.
Assuming health insurance has no claim. Many plans include repayment terms. Ask your plan in writing whether it claims any part of the settlement. Our article on how subrogation works in auto claims covers the basics.

What to do this week

Find your signed fee agreement and read the sections on percentage, costs and when costs are deducted.
List every provider that treated you, and ask each one for an itemized balance.
Ask whether any hospital recorded and served a notice of lien.
If Medicaid, a workers' comp insurer or a health plan paid any bills, confirm that each has been notified and asked for a written payoff.
Ask your attorney when the settlement funds are expected in trust and what will be held back, and why.
When the money is distributed, keep the written statement and check that each line matches a payoff letter.

Frequently asked questions

How long does it take to get my settlement money?

It depends on when the signed release is returned, when the insurer pays, and how quickly liens are confirmed. Nevada requires an attorney to promptly deliver funds a client is entitled to (RPC 1.15(d)), and undisputed amounts must be paid out promptly even while a dispute continues (RPC 1.15(e)).

Can I see the check and the bank records?

You are entitled, on request, to a full accounting of money held for you (RPC 1.15(d)). The attorney must keep complete trust account records for five years after the representation ends (RPC 1.15(a)).

Can a hospital take more than the 55 percent figure?

Not through the lien, if you may be eligible for Medicaid, Medicare, CHIP or another public program that may pay all or part of the bill (NRS 108.655). Outside that situation, the lien is for the reasonable value of the hospitalization (NRS 108.590).

What happens if the attorney and I disagree about the fee?

The disputed amount must be kept separate in trust until the dispute is resolved, and the rest must be distributed promptly (RPC 1.15(e)). An attorney's lien can be decided by the court on motion, after 5 days' notice to everyone involved (NRS 18.015(6)).

Do I pay tax on a car accident settlement?

Tax questions depend on federal rules and on how the settlement is described, and they are outside what this page covers. Ask a tax professional before you spend the money.

Does the clerk charge a fee for a child's settlement petition?

No. The clerk of the district court may not charge a fee to file a petition for leave to compromise a minor's claim or to put it on the calendar (NRS 41.200(7)).

If you are trying to understand what will come out of your settlement, attorney Maysoun Fletcher can walk through the numbers with you. Call 702-333-6339 for a free consultation; we answer 24/7.