Short answer: In Alabama, a court usually must approve a settlement for a minor. The child’s guardian or next friend typically files the petition and attends the hearing. Whether the minor must appear depends on the county judge, the child’s age and maturity, and whether a guardian ad litem or counsel for the minor has been appointed. The court’s job is to protect the minor’s interests before the settlement money is released.

This article explains the common steps and what to expect at the hearing under Alabama practice. This is general information only and not legal advice.

Why a court hearing is usually required

Alabama courts require judicial review of settlements that resolve a minor’s claim so a judge can ensure the result is fair and in the child’s best interest. The court reviews the amount, how fees and liens are handled, and how the funds will be held for the child until they reach majority or another court-approved distribution plan is in place. For the governing statutes and court rules, see Alabama Code, Title 26 (Probate & guardianship matters): Alabama Code Table of Contents, and the Alabama Administrative Office of Courts: judicial.alabama.gov.

Who normally attends the hearing

• Guardian or legal next friend who filed the petition — typically required.
• Attorney for the guardian/next friend — usually present to answer legal questions and present documents.
• Attorney for the minor (if the court appoints separate counsel) or guardian ad litem — may be required, especially in contested cases or when the judge feels independent representation is needed.
• The minor — may be required to appear in person in some counties or in certain cases; other times the judge accepts testimony by affidavit or allows the minor to testify by video. The court decides based on the child’s age, maturity, and the nature of the case.

What the court looks for at the hearing

At the hearing the judge will typically:

• Confirm the petitioner has authority to settle for the child.
• Review the settlement terms and the fairness of the amount.
• Examine attorney fees and costs to ensure they are reasonable.
• Check for outstanding medical liens, subrogation claims, or other encumbrances and verify how they will be resolved.
• Decide where and how the money will be held or distributed (for example, a court-approved blocked account, structured settlement, trust, or conservatorship).
• Consider whether an independent guardian ad litem or counsel for the minor should be appointed.

Typical courtroom procedure and timeline

1) Filing: The guardian/next friend’s attorney files a petition to approve the compromise or settlement. Supporting documents usually include the settlement agreement, medical records summary, lien statements, and a proposed order.
2) Scheduling: The court sets a hearing date (weeks to months away depending on caseload).
3) Notice: Notice of the hearing is given as the court requires so interested parties (medical providers, insurers, or others with liens) can appear.
4) Hearing: The petitioner’s attorney presents the settlement and answers the judge’s questions. The judge may ask the minor questions if present. The judge then approves, denies, or modifies the proposed settlement or may continue the hearing to get more information.
5) Order and distribution: If approved, the court signs an order spelling out fee approvals and how funds are to be held and distributed. Distribution happens according to the order (for example, attorney fees and liens paid first; remaining funds placed in a blocked account or trust).

What to bring and how to prepare for the hearing

• Photo ID for the guardian and any attorney present.
• Copies of the petition, settlement agreement, and any proposed court orders.
• Records supporting the claim (medical records summary, bills, and any correspondence about liens or subrogation).
• Statements from medical providers, insurers, or lienholders showing amounts owed or agreeing to compromise.
• A clear accounting of proposed attorney fees and anticipated costs.
• If the minor attends, bring anything that will make them comfortable (and plan for a brief appearance only if required).

Common outcomes and follow-up steps

• Approval as filed — judge signs the order; attorney and liens get paid and net proceeds are placed as ordered.
• Approval with changes — judge reduces fees, orders additional protections (e.g., funds to be placed in a guardianship account), or requires an independent accounting.
• Continued hearing — court asks for more documentation, valuations, or lien resolutions before deciding.
• Denial — rare when the record supports the settlement, but possible if the judge finds the terms unfair or incomplete.

Special considerations in Alabama

State and local practice vary. Judges sometimes require the minor to be assisted by counsel or a guardian ad litem when the amount is large or the settlement terms are complex. The court prefers arrangements that protect the minor’s long-term financial interest, such as structured settlements, trusts, or court-supervised blocked accounts, rather than immediate lump-sum release to the guardian.

For statutory framework on probate, guardianship and related court supervision, consult Alabama Code, Title 26 (Probate/Guardianship): https://www.legislature.state.al.us/.

When to consult an attorney

Talk with an attorney if:

• The settlement amount is large or there are multiple lienholders.
• There are competing claims for the funds.
• You expect a structured settlement, trust, or blocked account and want advice about long-term options.
• The judge asks for a guardian ad litem or the county routinely requires independent counsel.

An attorney experienced with Alabama minor-settlement practice can prepare the petition, handle negotiations with lienholders, and present the matter to the court to reduce delays and risk.