Why a Court Must Approve a Minor's Settlement in Virginia

By the FigureMyTax Editorial Team · How we calculate

In Virginia, a court may approve and confirm a compromise of a claim by a person under a disability, including a minor, if it is in the party's interest. The order binds the child unless set aside for fraud. We found no dollar threshold below which approval is not needed.

The rule

Va. Code 8.01-424(A) says that in any action where a person under a disability is a party, the court where it is pending has the power to approve and confirm a compromise, including claims under a liability insurance policy, if deemed in the party's interest. The order is binding on the party except that it may be set aside for fraud.

If no suit is pending

Subsection B says that for injury to a person under a disability, any person or insurer interested in a compromise may, if no action is pending, move any circuit court to approve it, and the court must require reasonable notice to all parties and interested persons.

The court directs the money

The court directs payment into court, into a college savings trust account, to a qualified fiduciary, or to a parent or guardian to hold in trust. See how those options work.

Deadlines

A person who is an infant when the claim accrues may sue within the usual period after the disability is removed (Va. Code 8.01-229(A)(1)), and personal injury actions have two years (8.01-243), so about age 20. Ask an attorney before assuming you have time. Run your numbers in the Virginia minor's settlement calculator.

This is general information, not legal advice, and the state comparisons above are illustrative, not an exhaustive survey. Confirm how Virginia's rules apply to your specific case with a licensed Virginia attorney.