California Structured Settlement State Laws | CrowFly
State Laws / California

California Structured Settlement State Laws

If you live in California and are interested in selling your structured settlement for cash, below is a brief overview that can be a good starting point in your research.

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California Law: Selling Structured Settlement Payments

If you are considering selling your future structured settlement payments for an immediate lump sum in California, it's important to understand the laws surrounding this type of transfer. In addition to federal law, 50 states have their own laws that govern the process of transferring the rights of a structured settlement annuity.

California Structured Settlement Law

In California, the law surrounding the transfer of rights to future structured settlement payments is Article 2.3. Transfers of Structured Settlement Payment Rights.

§ 10139.5. Approval in advance by final court order; Necessary findings of court; Specified circumstances the court must consider before approving transfer; Filing of final court order

(a) A direct or indirect transfer of structured settlement payment rights is not effective and a structured settlement obligor or annuity issuer is not required to make any payment directly or indirectly to any transferee of structured settlement payment rights unless the transfer has been approved in advance in a final court order based on express written findings by the court that:

(1) The transfer is in the best interest of the payee, taking into account the welfare and support of the payee’s dependents.

(2) The payee has been advised in writing by the transferee to seek independent professional advice regarding the transfer and has either received that advice or knowingly waived, in writing, the opportunity to receive the advice.

(3) The transferee has complied with the notification requirements pursuant to paragraph (2) of subdivision (f), the transferee has provided the payee with a disclosure form that complies with Section 10136, and the transfer agreement complies with Sections 10136 and 10138.

(4) The transfer does not contravene any applicable statute or the order of any court or other government authority.

(5) The payee understands the terms of the transfer agreement, including the terms set forth in the disclosure statement required by Section 10136.

(6) The payee understands and does not wish to exercise the payee’s right to cancel the transfer agreement.

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Structured Settlement Federal Law

To sell your future structured settlement payments, you'll need to comply with both state and federal law. These laws are in place to protect you. Knowing Structured Settlement Federal Law is important as it states the …… 26 U.S. Code 5891 also offers some helpful definitions and other rules for selling structured settlement rights. Read the full law here.

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How Does Selling Structured Settlements Work

Learn about all the steps required when selling structured settlement payments.

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What to Expect When Working with CrowFly

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