Disclosure First: Avoiding the Pitfalls of Fast-Track Settlements

avoiding pitfalls of fast track settlements

Being involved in a lawsuit can be emotional and overwhelming. Understanding the legal process and your rights can help you prepare and avoid making rash decisions that negatively affect your case. The opposing legal team often wants to rush to settle without going through the discovery process. This blog reviews the importance of discovery and how settling too quickly can have negative consequences. 

 

What is legal discovery and disclosure?

Legal discovery and disclosure are important to the legal process, primarily in civil litigation. They ensure that all parties have access to relevant facts, evidence, and information about a case before it goes to trial.

 

Financial Affidavits:  In Family Law Matters, Illinois law requires a mandatory disclosure in the form of a Financial Affidavit at the early stage of the case with updates to be completed from time to time.  Disclosure is part of the discovery process and involves the mandatory sharing of information and documents directly relevant to financial affairs of both parties and requires the disclosure of income, assets, debts and monthly expenses.  If a party provides false information, sanctions can be imposed by the Court.

 

Legal Discovery: Legal discovery is a pre-trial procedure where parties to a lawsuit request and exchange information essential to the case. The purpose of discovery is to prevent surprises during the trial, narrow down the issues to be argued, and encourage settlement by making all parties aware of the evidence. Methods of discovery include depositions (oral questioning of a party or witness under oath), interrogatories (written questions that must be answered under oath), requests for the production of documents, and requests for admissions, where parties are asked to admit or deny certain aspects of the case.

 

What is a quick settlement? 

A quick settlement typically refers to resolving a dispute or finalizing an agreement in a shorter time frame than usual, often bypassing lengthy negotiations, legal proceedings, or due diligence.

 

The idea behind a quick settlement is to reach a resolution that all parties can agree on without the extended timelines and expenses associated with more drawn-out processes. However, while quick settlements can provide immediate resolution and reduce legal fees or other costs, they also come with risks. Parties may need to fully realize the value of what they’re settling for or may overlook important details, leading to outcomes that might not fully protect their interests in the long run.

 

Negatives of A Quick Settlement 

It’s not uncommon for the opposing side to present a quick settlement in a legal matter. While it may look like an attractive offer and save time and money, it can have serious consequences. Below are some of the dangers of accepting a quick settlement.

 

Financial Losses: The haste to finalize financial transactions without exhaustive disclosure can lead to severe miscalculations. Failure to do due diligence can lead to undervaluing a business during a divorce, overlooking hidden costs or tax consequences in a marital settlement agreement, or underestimating the long-term financial impact of the division of assets and debts.  Each scenario can significantly strain your finances, highlighting the critical need for diligence and transparency in all financial dealings to safeguard against varied and substantial losses.

 

Waiving Rights Unknowingly: In the rush to reach an agreement, parties may inadvertently waive important rights or agree to conditions that limit future recourse. This often happens in legal settlements where one party agrees to forego future claims without fully appreciating the scope of what is being surrendered.  

 

Settling for Less: Rushing to settle can also result in less than you might have gotten if you’d taken the time to negotiate with all the facts on the table. Accepting an offer too quickly can result in not getting the division of assets or support you may be entitled to receive.

 

What to Do if You Have Been Offered a Quick Settlement?

If you are offered a quick settlement, it’s important to take your time and carefully consider your options. Cutting corners on full disclosure might save you time or hassle at first, but it’s likely to lead to bigger problems down the line. If you do not have legal representation, contact Sterk Family Law for answers to your questions and guidance through the process.

 

This is a legal advertisement from Sterk Family Law Group. It does not constitute legal advice and should not be construed as such. This article is for informational and educational purposes only.

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