Instead of trying to just explain the math behind an accident settlement, I've included an actual Settlement Sheet. See:
SETTLEMENT SHEET.pdf
This from a relatively minor car accident case I settled a few weeks ago. Obviously, I've taken out our client's name (I'll call her Client) and the defendant's name. The dates are also different than the actual case.
Here's a quick summary:
The property damage claim was settled shortly after the accident. Our firm didn't charge anything for the property damage settlement, so that check went directly to Client.
The personal injury claim settled for $12,500. All insurance companies require claimants to sign a settlement release before they'll write a check. The total settlement check was made out to Client, all the medical providers that had outstanding bills, and Medicare. Medicare had paid for some of Client's bills, so they wanted to be reimbursed ("right of subrogation").
As you can see, the attorney's contingency fee in this case was 25%. This amount is taken out of the total settlement. We spent $63.19 obtaining the medical records. This was what the various hospitals charged for them. Client have several outstanding medical bills that totaled $630 and Medicare wanted to be reimbursed $1,399.65. The payment to Client, after everything was paid off, was $7,282.16.