How Are Wrongful Death Settlements Calculated in Colorado?

Losing a loved one due to someone else’s negligence is a devastating experience. While no amount of money can truly compensate for the loss, filing a wrongful death claim can provide financial relief and a sense of justice for surviving family members. In Colorado, wrongful death settlements are designed to cover both economic and non-economic losses resulting from the victim’s death.

Understanding how wrongful death settlements are calculated can help families prepare for the legal process and set realistic expectations. Several factors influence the amount of compensation awarded, and Colorado law outlines specific guidelines for determining these damages.

Who Can File a Wrongful Death Claim in Colorado?

Before exploring how settlements are calculated, it’s important to know who is eligible to file a wrongful death claim under Colorado law. The right to file a claim is restricted to specific individuals:

• In the first year following the death, only the surviving spouse may file a claim.
• In the second year, both the surviving spouse and any surviving children may file.
• If there is no surviving spouse or children, the deceased person’s parents may file the claim.
• The deceased’s estate may also file a separate claim known as a survival action to recover damages for losses suffered by the deceased before passing.

Once the proper party files the claim, the court will assess the financial and emotional impact of the death to determine the appropriate compensation.

Key Factors That Affect a Wrongful Death Settlement in Colorado

Wrongful death settlements vary widely because they are based on numerous factors that assess the loss suffered by surviving family members. Key factors that influence settlement amounts include the following:

1. The Deceased’s Age and Life Expectancy

The victim’s age at the time of death plays a major role in determining potential compensation. Younger individuals are generally projected to have more working years ahead of them, which can result in higher settlements based on lost future earnings.

For example, the wrongful death of a 35-year-old professional with a steady income may result in a larger settlement than that of a retiree whose income stream had already ceased. Courts may also consider the deceased’s health, lifestyle, and occupation when calculating life expectancy.

2. Loss of Income and Financial Support

Lost earnings are one of the most significant components of a wrongful death settlement. This includes the deceased’s current income as well as projected future earnings. Factors that influence this calculation include:

• The victim’s salary or hourly wage at the time of death.
• Promotions, raises, or bonuses the victim was expected to receive.
• The deceased’s education level, job skills, and career trajectory.

Additionally, if the deceased provided financial support to dependents — such as children, a spouse, or aging parents — those losses are considered in the settlement calculation.

3. Medical Expenses Related to the Injury or Illness

In many cases, the victim may have received medical treatment before passing. A wrongful death settlement may include compensation for:

• Hospital stays and emergency care.
• Surgical procedures and medications.
• Rehabilitation or other treatments attempted before the victim’s death.

Medical records are crucial when calculating these costs, as they demonstrate the financial burden placed on the family before the victim’s passing.

4. Funeral and Burial Costs

Funeral expenses can place a significant strain on families during an already difficult time. A wrongful death settlement may include reasonable compensation for funeral services, cremation, burial costs, and other related expenses.

5. Loss of Benefits and Inheritance

If the deceased provided health insurance, retirement contributions, or other valuable benefits to their family, these losses may be considered in the settlement. Additionally, if the deceased’s death results in the loss of an expected inheritance, the court may factor this into the financial award.

6. Loss of Companionship, Guidance, and Support

Non-economic damages account for the emotional and psychological toll the loss has had on surviving family members. This includes:

• Loss of Companionship: The emotional impact of losing a spouse, parent, or child.
• Loss of Parental Guidance: Compensation for children who have lost the emotional and educational guidance of a parent.
• Emotional Distress: The psychological suffering experienced by surviving family members.

While non-economic damages are subjective, they are often a significant factor in wrongful death settlements.

7. Pain and Suffering of the Deceased

If the deceased experienced pain and suffering before passing, this may be compensated through a survival action. Unlike wrongful death claims, survival actions focus on the victim's personal suffering rather than the impact on surviving family members.

8. Colorado’s Cap on Non-Economic Damages

Colorado law places a cap on non-economic damages in wrongful death claims. As of 2024, non-economic damages are generally limited to approximately $642,180. However, in cases of extreme negligence, misconduct, or wrongful intent, punitive damages may be awarded in addition to this cap.

9. Evidence of Negligence or Misconduct

The strength of the evidence showing that the defendant's actions directly caused the death can significantly impact the settlement amount. Strong evidence — such as witness statements, expert testimony, and accident reports — can support the claim and may lead to higher compensation.

How Are Wrongful Death Settlements Paid in Colorado?

Once a settlement is reached, payments are typically structured in one of two ways:

• Lump Sum Payment: The full settlement is paid at once, allowing the family to pay off immediate expenses and manage financial needs.
• Structured Settlement: Payments are made in installments over time, providing long-term financial stability for surviving family members.

The structure of the settlement often depends on the unique financial circumstances of the family and the size of the award.

Why Hiring an Attorney Can Strengthen Your Case

Wrongful death cases can be legally complex, requiring extensive evidence, expert testimony, and financial calculations. An experienced wrongful death attorney can:

• Assess the full value of your case.
• Gather evidence to support your claim.
• Handle negotiations with insurance companies and opposing counsel.
• Represent you in court if a fair settlement cannot be reached.

Contact Pribila & Fields Today for Your Colorado Wrongful Death Case

While no financial award can erase the pain of losing a loved one, a wrongful death settlement can provide much-needed financial stability and hold the responsible party accountable. Understanding how settlements are calculated can empower families to seek the compensation they deserve.

If you have questions about filing a wrongful death claim in Colorado, contact us today for a confidential consultation. At Pribila & Fields, we are committed to guiding families through this challenging time with compassion and dedicated legal representation.