Worked example: Structured Settlement in Florida

7 min read

Published April 15, 2026 • By DocketMath Team

This article is for informational purposes only and does not constitute legal advice. Laws change frequently — verify all citations with current official sources.

Example inputs

Run this scenario in DocketMath using the Structured Settlement calculator.

Below is a worked example showing how DocketMath can model a structured settlement scenario in Florida (US-FL) using jurisdiction-aware defaults for the statute-of-limitations (SOL) period.

Note: This example is for illustration of workflow and math. It’s not legal advice and doesn’t create an attorney-client relationship. Use it to understand how the calculator behaves with Florida’s default SOL rule.

Scenario (assumed facts for the example)

We’ll model a claimant considering a settlement arrangement that includes periodic payments rather than a single lump sum. To connect the timeline to Florida’s default SOL framework, we assume:

Date of event (or claim accrual trigger used for SOL purposes): January 15, 2022
Structured settlement start: July 1, 2022
Payment plan:
- 60 monthly payments of $1,500
- then annual payments for 5 years of $18,000 each year
Discount rate used for present value (PV): 3.25% annual, compounded monthly for the monthly stream and annually for the annual stream

Florida SOL inputs used by DocketMath (jurisdiction-aware rule)

For Florida, this worked example uses the provided general/default SOL period because no claim-type-specific sub-rule was found in the jurisdiction data you provided.

General SOL Period: 4 years
General statute citation: Florida Statute § 775.15(2)(d)
Source: https://www.flsenate.gov/Laws/Statutes/2004/775.15?utm_source=openai

DocketMath uses this 4-year default as a timeline constraint input (for example, to contextualize whether a claim would be time-barred under that default period). The key point is that the calculator’s “jurisdiction SOL” component applies the general/default period unless you provide a more specific sub-rule/claim type.

Checklist: what you’ll enter in DocketMath

Use these fields in your DocketMath structured settlement workflow:

Example run

Run the Structured Settlement calculator using the example inputs above. Review the breakdown for intermediate steps (segments, adjustments, or rate changes) so you can see how each input moves the output. Save the result for reference and compare it to your actual scenario.

Step 1: Compute the Florida default SOL window (context)

With the provided default SOL period of 4 years, the default limitations window runs:

Accrual/event date: 01/15/2022
Default SOL end date: 01/15/2026

DocketMath will treat this as the general/default SOL horizon tied to Florida Statute § 775.15(2)(d) (per the dataset you provided).

Why this matters in a structured settlement model: structured payment schedules often span multiple years. A PV analysis and settlement timing discussion are easier to evaluate when you can anchor the plan to a known SOL boundary—even when the calculator’s primary output is financial (present value) rather than legal status.

Warning: If your matter involves a claim type with a different SOL rule, the “4-year default” may not apply. In this worked example, we intentionally do not apply any claim-type-specific sub-rule because none was found in the supplied jurisdiction data.

Step 2: Compute present value (PV) of the payment streams

To keep the workflow concrete, we’ll approximate PV using discounting rules consistent with typical calculator assumptions:

Monthly payments discounted using a monthly rate derived from 3.25% annual
Annual payments discounted using annual discounting

Discount rate conversion (monthly):

Monthly rate ( r_m \approx 0.0325/12 \approx 0.0027083 ) (0.27083%)

A) PV of 60 monthly payments of $1,500

A standard annuity PV formula for payments starting shortly after the first date is:

[ PV_{monthly} = PMT \times \frac{1 - (1+r_m)^{-n}}{r_m} ]

Where:

( PMT = 1500 )
( n = 60 )

Compute the annuity factor:

( (1+r_m)^{-60} \approx (1.0027083)^{-60} \approx 0.849 ) (approx.)
Factor: ( \frac{1-0.849}{0.0027083} \approx \frac{0.151}{0.0027083} \approx 55.8 )

So:

( PV_{monthly} \approx 1500 \times 55.8 \approx $83,700 )

B) PV of 5 annual payments of $18,000

Assuming the annual payments occur each year after the monthly stream ends (monthly stream ends after 60 months starting from 07/01/2022; that lands around 06/30/2027). The annual payments run for 5 years.

Using annual discounting: [ PV_{annual} = 18000 \times \frac{1 - (1+i)^{-5}}{i} ] Where:

( i = 0.0325 )
( n = 5 )

Compute annuity factor:

( (1.0325)^{-5} \approx 0.851 ) (approx.)
Factor: ( \frac{1-0.851}{0.0325} \approx \frac{0.149}{0.0325} \approx 4.58 )

So:

( PV_{annual} \approx 18000 \times 4.58 \approx $82,440 )

C) Total PV estimate

[ PV_{total} \approx PV_{monthly} + PV_{annual} \approx 83,700 + 82,440 \approx $166,140 ]

Step 3: DocketMath outputs you can expect to review

In DocketMath’s structured-settlement workflow, you’ll typically see output grouped into:

Present value (PV) of each stream (monthly + annual)
Total PV (combined)
Timing breakdown (start date → stream end date)
Jurisdiction SOL horizon (Florida default 4 years under the provided statute basis)

For this example:

Default Florida SOL window (general): 01/15/2022 → 01/15/2026
Total stream value in time: stretches beyond the SOL window, but PV discounts all future payments
Estimated PV: ~$166,140 at 3.25%

Sensitivity check

A good structured settlement model should show how outputs change when assumptions move. DocketMath is useful here because you can rerun the calculator with a few controlled changes.

To test sensitivity, change one high-impact input (like the rate, start date, or cap) and rerun the calculation. Compare the outputs side by side so you can see how small input shifts affect the result.

Sensitivity variable 1: discount rate (3.25% → 2.00% or 5.00%)

Because PV is discount-rate-sensitive, changes to the discount rate usually move the total PV materially.

Run the same payment schedule with two alternate rates:

Discount rate	Estimated PV (approx.)	Direction
2.00%	Higher PV	Discounting less
3.25%	Baseline PV	—
5.00%	Lower PV	Discounting more

What to look for in DocketMath:

PV of the annual stream usually swings more because those cash flows are farther out.
PV of the monthly stream still changes, but typically less dramatically.

Sensitivity variable 2: payment timing (first payment date)

If the first payment shifts:

from 07/01/2022 to 10/01/2022 (a 3-month delay),
DocketMath will discount fewer (or more) payments at deeper discount periods depending on its convention.

Practical takeaway: a delay of a few months can reduce PV even if the nominal payment amounts remain the same.

Sensitivity variable 3: term lengths (60 months → 72 months)

If you extend the monthly stream:

Change 60 monthly payments to 72 while holding the payment amount constant,
The PV increases, but it will increase more at lower discount rates.

SOL sensitivity: what happens if you later identify a different SOL rule?

This example intentionally applies the general/default SOL period of 4 years tied to Florida Statute § 775.15(2)(d) because your dataset did not identify claim-type-specific sub-rules.

If you later discover a different Florida SOL applicable to the specific claim type, the jurisdiction SOL horizon in DocketMath should be updated accordingly. Otherwise, the timeline constraint could be inaccurate.

Pitfall: Treating the 4-year default as universally applicable can lead to incorrect timing conclusions. In this worked example, we used the default only because no claim-type-specific sub-rule was provided.