This FAQ-style guide explains, in plain language, the typical steps New Jersey courts follow when a parent, guardian, or attorney asks a judge to approve a personal injury settlement that involves a minor. It assumes no prior legal knowledge and outlines documents, hearings, and protections the court uses to protect a child’s interests.

Detailed Answer — Step-by-step process

When a minor (under 18) is injured and a personal injury claim settles, New Jersey courts commonly supervise the settlement to protect the child’s legal and financial interests. The procedure generally follows these steps:

1. Hire an attorney or confirm counsel is involved.

   An attorney experienced in New Jersey personal injury law usually prepares the settlement documents and the court papers needed to seek approval. Courts do not require an attorney every time, but a lawyer typically ensures the minor’s rights and future needs are properly presented.

2. Decide whether formal court approval is required.

   Courts review many minor settlements. Even if the parties think approval is unnecessary, filing for court approval is common when the settlement involves medical liens, future care needs, significant amounts, or when a third party (e.g., government health program) has an interest. If you are unsure, check with counsel or consult the New Jersey Courts self-help resources: https://www.njcourts.gov/.

3. Prepare the petition and supporting documents.

   The paperwork typically filed with the court includes:

   • The written settlement agreement (signed by the parties).
   • A petition or application asking the court to approve the compromise of the minor’s claim.
   • A verified complaint or summary of the claim, injuries, treatment, and damages.
   • Medical records and bills showing the injury and treatment.
   • Evidence of liens or claims (health insurers, Medicaid/Medicare, medical providers).
   • A proposed plan for how settlement funds will be handled (e.g., lump sum to a restricted account, structured settlement, or money placed under court supervision or into a trust).
   • Affidavits of the minor’s parent(s) or guardian regarding facts, and any fee agreements between counsel and the minor’s parent/guardian.
4. Request appointment of a guardian ad litem or court-appointed attorney for the minor when needed.

   If the court believes the child’s interests need independent representation, it may appoint a guardian ad litem (GAL) or counsel for the minor. The GAL’s role is to investigate and report on whether the settlement is fair, reasonable, and in the child’s best interest.

5. File the petition in the appropriate court division.

   Typically, the petition is filed in the Superior Court of New Jersey in the county where the minor lives or where the claim arose. Local practice can vary. The New Jersey Courts website provides general guidance on filings and procedures: https://www.njcourts.gov/.

6. Serve interested parties and notify lienholders.

   The court requires notice to anyone with a legal interest in the settlement—insurers, health-care providers who assert liens, government benefit programs, and sometimes other family members. Resolving liens or negotiating reductions often happens before final approval.

7. Attend a court hearing (fairness hearing).

   The court will often hold a hearing to evaluate the settlement. At the hearing the judge examines:

   • Whether the settlement amount is reasonable for the injuries and likely future needs;
   • Whether attorney fees are reasonable and properly disclosed;
   • Whether any portion of the settlement should be reserved for future medical needs;
   • How the funds will be managed to protect the child’s future (trusts, blocked accounts, structured settlements, or court supervision).

   The minor may need to attend in person or through counsel/GAL, depending on the court’s rules and the child’s age.

8. Court issues an order approving, modifying, or rejecting the settlement.

   If the judge finds the settlement fair and that the minor’s interests are protected, the court signs an approval order or judgment. The order may direct where settlement funds go—often to a blocked (restricted) account, a trust, or a structured settlement annuity. The order may also reduce or approve attorney fees and direct lien resolution or distribution to caretakers for medical costs already paid.

9. Distribute or protect the funds as ordered.

   After approval, the defendant or insurer pays the settlement and funds are handled according to the court order. Common options include:

   • Deposit into a blocked bank account requiring court approval to withdraw;
   • Establishment of a trust or custodial account (sometimes a special needs trust if the child receives public benefits);
   • Purchase of a structured settlement annuity that pays over time.
10. Follow-up accounting or reports if required.

    If the court retains continuing jurisdiction over the funds or appoints a guardian/ trustee, it may require periodic accounting or further filings to ensure funds are used for the child’s benefit.

For general filing rules and local procedures, see the New Jersey Courts site: https://www.njcourts.gov/ and the Rules of Court information for attorneys: https://www.njcourts.gov/attorneys/rules.html.

Common documents and evidence judges want to see

• Complete settlement agreement and any releases.
• Medical records and bills, and an expert or treating physician statement about prognosis and likely future care needs.
• Itemized statement of past and anticipated expenses (including future care costs).
• Records of any liens, subrogation claims, or government benefit interests (Medicaid/Medicare), and how they will be resolved.
• Proposed plan for managing funds (trust documents, structured settlement proposals, or bank deposit forms).
• Affidavit describing who has custody or guardianship and confirming the settlement terms.

Typical timeline

Timelines vary. Simple, small-value settlements can be approved in a few weeks. Complex cases (large settlements, contested liens, appointment of a guardian ad litem, or disputes over attorney fees) can take several months. Start the approval process early, especially when future care planning or lien negotiations are needed.

Potential complications to expect

• Disputed or high medical liens that must be negotiated or reduced before distribution.
• Disagreements about attorney fees or distribution among family members.
• A need for a special needs trust if the minor receives public benefits.
• Court concerns about the proposed management of funds (judge may require a trust or blocked account instead of a lump-sum payout).

Helpful Hints

• Start lien resolution early—Medicaid, private insurers, and medical providers may claim reimbursement rights.
• Ask your attorney about structured settlements and trusts if future care is likely; these options protect funds and can preserve public benefits.
• Make sure fee agreements are in writing and clearly explain how attorney fees will be calculated and paid from the settlement.
• Bring strong medical evidence showing the extent of injuries and any expected future care to the court hearing.
• Be prepared for the judge to require a hearing even if all parties agree—courts independently assess whether the deal is in the child’s best interest.
• If the minor receives government benefits, get advice about special needs trusts and how a settlement may affect those benefits.
• Contact the appropriate county Superior Court clerk’s office or the New Jersey Courts self-help pages for local filing rules and forms: https://www.njcourts.gov/.
• Keep records of all settlement communications, liens, and payments—courts may ask for detailed accounting later.