New Jersey Structured Settlement and Annuity Laws

Those who hold structured settlements and annuities have an extra way to meet big financial goals or handle difficult financial emergencies; a sale of one of these assets can help families to avoid major debt, or allow structured settlement and annuity holders to make good investments for the future. However, it’s important for those who want to sell a structured settlement or annuity to know what kinds of rules they face in their state of residence. In New Jersey, a 2002 bill covers state requirements for these kinds of transactions, ensuring that structured settlement and annuity sales go through a specific ‘due process’ before being finalized.

New Jersey Structured Settlements Court Review

New Jersey is like many other U.S. states in that structured settlement and annuity sales must go through a mandatory court hearing for approval. This court review helps to make sure that a consumer selling a structured settlement or annuity gets a fair deal in terms of the cash payment that they get for handing over future payment rights. The New Jersey law is meant to protect the structured settlement or annuity seller’s best interests, and to provide for dependents if applicable.

New Jersey Structured Settlements and Annuities Disclosure

Again, structured settlement and annuity laws in New Jersey are the same as laws in many other states when it comes to the kinds of disclosure that legislators require. Structured settlement and annuity buyers, companies writing lump sum checks to asset holders in return for future payment rights, must provide the seller or ‘payee’ with a net advance amount, as well as a calculation of future payment value according to ‘discounted present value,’ so that the person selling a structured settlement or annuity can see what they are getting and what they are surrendering in return. The New Jersey law also spells out what happens in a breach of contract situation, and informs the consumer about other financial details related to the deal.


There’s another element of New Jersey structured settlement and annuity law that is replicated in the regulations of other states: the law requires that the structured settlement or annuity buyer recommend ‘independent professional advice’ to someone who is about to sell future payments. According to New Jersey law, the structured settlement or annuity seller must seek that advice or waive the right to it in writing. This aspect of the law is important because an outside professional can help to show the seller what they might be entitled to on the open market.


In addition to knowing New Jersey structured settlement and annuity law, families looking to sell part or all of these assets can benefit from shopping around for a top asset buyer. At CBC, we have an excellent track record in customer service and provide competitive offers for a full range of structured settlement and annuity sellers. Let us help you to make sure your structured settlement or annuity deal happens on your terms, that you get the money that you need when you need it, and that you stay informed about your transaction as it proceeds.


About Us

The Covered Bridge Capital (CBC) brand was founded in 2004 with the mission of assisting individuals who are receiving structured settlement payments over time from court awards, insurance settlements, and other types of annuity payouts. Since then, our knowledgeable professionals have helped hundreds of clients to unlock the value of future payments and turn them into immediate cash.