Court settlements are usually referred to in terms of the financial dividends or compensation that can often times be obtained before or after litigation in the courts of law. Many people will often relate lawsuit settlements to the money that is sometimes involved in lawsuits, though court settlements actually refers to the actual agreement that is made prior to a civil suit entering litigation in court. A court settlement is an agreement or contract that involves both parties in lawsuit in order to resolve the matter before entering the court procedures.
Lawsuit settlements are very common in law, with many court settlements actually being the method in which legal matters are resolved. Many court settlements will typically occur before entering trial so as to avoid a lengthy litigation process. However, lawsuit settlements can also arise during the course of a trial under certain circumstances.
Court settlements entail an agreement that is reached by both parties on a specific course of resolution for the problem at hand. Usually, this will often involve some sort of financial compensation, which is why the term itself is often equated with money paid as a result of lawsuit to one party. However, not all lawsuit settlements will necessarily involve compensation, or will not only involve some sort of fiscal recompense. Such a case can be a divorce settlement, in which issues such child custody and division of assets are key issues.