How Survivors Can Receive Compensation in a Sexual Abuse Case

Civil lawsuits are one of the most effective tools for survivors seeking justice. While criminal cases focus on punishing wrongdoers, civil lawsuits aim to compensate survivors and hold abusers and the institutions that enabled the abuse accountable.

Survivors have little control over the criminal process, and prosecutors ultimately decide whether to bring criminal charges. However, you don’t need to wait for criminal charges to file a civil claim. Survivors can file lawsuits against both the individual who committed the abuse and the institutions that enabled it. This includes organizations that failed to prevent, report, or respond to abuse, such as schools, churches, youth groups, and health care providers.

What Types of Compensation Can Victims of Sexual Abuse Receive?

Each case is unique, but the civil justice system allows survivors to pursue compensation for various financial damages. These may include the following:

• Medical and therapy expenses: Past and future treatment costs for counseling, psychiatry, medication, and recovery programs
• Lost wages, or reduced earning potential: Compensation for time missed at work, difficulty maintaining employment, or changes to a career path due to trauma
• Other costs: Relocation, school changes, long-term support needs, and other disruptions directly linked to the abuse
• Emotional distress, pain, and suffering: Covers the physical, emotional, and psychological trauma survivors experience, including post-traumatic stress disorder, anxiety, depression, and loss of enjoyment in life
• Punitive damages: Awarded by courts to punish institutions that acted with reckless disregard or gross negligence and deter future misconduct

How Is Sexual Abuse Compensation Calculated?

A variety of factors can significantly affect your potential recovery, including:

• The severity and duration of abuse
• The survivor’s age at the time of the abuse
• Long-term emotional and physical impact on daily life, relationships, and overall mental health
• Jurisdiction and statute of limitations, which vary by state
• Strength of evidence or corroborating testimony
• The defendant’s resources

Lawsuits against large organizations, such as national youth groups, religious institutions, or schools, often result in higher compensation due to the availability of insurance or settlement funds and systematic failure.

Is There a Standard Settlement Amount in Sexual Abuse Cases?

There is no standard payout because each case is unique, and the value depends on factors like the case’s complexity and strength. However, settlements can range from tens of thousands to several million dollars.

Several factors that influence the range include the following:

• Individual vs. class action claim: Class action settlements may involve standardized amounts distributed to an entire class of plaintiffs, while individual cases are assessed more personally.
• Whether the institution is already under scrutiny: For institutions like the Boy Scouts of America, Catholic dioceses, or others offering formal settlement programs, there may already be a standard settlement amount.
• Whether the abuse is known: The status and history of credible accusations against the abuser can impact liability and public pressure for justice.
• State damage caps on civil claims: Damage caps are legal limits on the compensation awarded to the survivor for non-economic damages like pain and suffering.

Will I Owe Taxes on a Sexual Abuse Settlement?

Under the U.S. tax code, compensation for physical injuries is generally not taxable. However, damages awarded solely for emotional distress not connected to physical harm or injury may be taxed.

Meanwhile, reimbursements for out-of-pocket medical and therapy costs are not taxable unless the taxpayer has already deducted those expenses on a previous tax return. Conversely, amounts received for lost wages and punitive damages are generally taxable.

The differing tax treatment of various parts of a settlement often leaves survivors vulnerable to unexpected tax liability if their settlement is not carefully structured. However, with the right legal strategy, it’s often possible to minimize or eliminate tax consequences.

At Andreozzi + Foote, we use precise legal language and proven settlement strategies to help protect our clients from unnecessary financial burdens, ensuring more of your compensation goes toward your healing.

Tax Reform Efforts for Sexual Abuse Settlements

In 2024, lawmakers introduced the Survivor Justice Tax Prevention Act, a bill designed to make all forms of compensation in sexual abuse cases completely tax-free. While the legislation ultimately did not pass, it brought attention to the financial burdens survivors can face when seeking justice through civil lawsuits.

At Andreozzi + Foote, our team remains committed to minimizing tax exposure whenever possible, helping survivors retain the compensation they need to support healing, recovery, and a more secure future.

How Andreozzi + Foote Sexual Abuse Lawyers Can Help

When you choose Andreozzi + Foote, you choose more than just legal representation. You’re gaining a team of trauma-informed advocates committed to your long-term well-being. With a track record that includes a landmark $2 billion verdict against the Boy Scouts of America on behalf of 600 abuse survivors nationwide, our firm brings compassion and courtroom experience to every case.

We understand that healing is just as important as justice, which is why our approach centers on the individual needs of each client. Thus, we devise legal strategies that prioritize emotional safety while pursuing maximum compensation. From connecting clients with trusted trauma professionals to carefully structuring settlements to reduce future burdens, we’re with you every step of the way.

Start With a Free, Confidential Consultation

If you’re considering legal action, we’re here to listen – no pressure, no obligation. Your consultation is free and completely confidential, and everything you share will be handled with the utmost care and respect.

Contact us online or call (866) 311-8640 to take the first step toward justice and healing.