Rule 70.1.Application to transfer structured settlement payment rights.
Last verified July 1, 2026
Full Text of Rule 70.1
Amendment History
Promulgated by R-16-0010, effective January 1, 2017.
Plain-English Summary
Selling the right to future structured settlement payments requires court approval, and this rule spells out what goes into the payee's sworn declaration supporting that request: personal and family information, income and dependents, any child support or spousal maintenance obligations, any other court orders requiring the payee to pay money, and a full history of past transfer applications and unapproved transfers of the same settlement rights. The payee must also explain why the transfer is wanted and how the proceeds will be used, including a breakdown of any debts the money would pay off.
The proposed transferee files its own declaration too, certifying that it isn't aware of any undisclosed prior transfers by the payee, that it has complied with the statutory requirements governing these transfers, and that the proposed transfer wouldn't violate any law or court order as far as it knows after reasonable inquiry. Together, the two declarations give the court the information it needs to protect a payee who might otherwise be pressured into an improvident sale of future income.
Frequently Asked Questions
What must a payee disclose in a declaration supporting a structured settlement transfer?
Personal and family details, income, any support obligations or other court orders requiring payments, a history of prior transfer applications and unapproved transfers, and the payee's reasons and plans for using the transfer proceeds.
Does the company buying the payment rights have to submit anything?
Yes. The transferee must file its own sworn declaration confirming it knows of no undisclosed prior transfers, that it has met its statutory obligations, and that the transfer wouldn't violate any known law or order.
Why does this rule require so much disclosure?
Because structured settlement transfers involve giving up future income for a lump sum now, courts require a fuller picture of the payee's circumstances before approving the transfer.