Ohio Structured Settlement Protection Act: Transfer Approval and Compliance

Ohio’s Structured Settlement Protection Act is codified at Ohio Revised Code §§ 2323.58–2323.585. Ohio’s large population and active tort litigation market, particularly in Cuyahoga County (Cleveland), Franklin County (Columbus), and Hamilton County (Cincinnati), make it an important jurisdiction for structured settlement transfers.

📜 Governing Statute

The Ohio SSPA is found at ORC §§ 2323.58 through 2323.585, within Title 23 (Courts—Common Pleas) of the Ohio Revised Code. The Act establishes disclosure requirements, court approval procedures, and payee protections consistent with the model SSPA framework.

📄 Required Disclosures

Not less than three days before the payee signs a transfer agreement, the transferee must provide a written disclosure in bold type no smaller than 14 points, including payment amounts and dates, aggregate amount, discounted present value using the AFR, gross advance amount, itemized expenses, net advance amount, and a recommendation to seek independent professional advice.

⚖️ Court Approval Standard

The court must find that the transfer is in the best interest of the payee, taking into account the welfare and support of dependents. The payee must have been advised in writing to seek independent professional advice and must have either received such advice or knowingly waived it. The transfer must not contravene applicable statutes or court orders.

🏛️ Venue and Filing

Transfer petitions are filed in the Court of Common Pleas in the county where the payee resides. Ohio’s 88 counties each have their own Court of Common Pleas, with procedures varying by local rule. Cuyahoga, Franklin, and Hamilton counties handle the highest volume of transfer petitions.

🛡️ No State registration requirement

Ohio does not currently require structured settlement purchase companies to register with a state agency or post a surety bond for factoring activities. Standard Ohio business registration through the Secretary of State applies.

💡 Practical Considerations

• County variation—Ohio’s 88 counties have diverse local practices; research specific county procedures before filing
• Standard timeline—45–75 days from filing to court approval in most jurisdictions
• Workers’ compensation—Ohio has a state-fund workers’ compensation system; verify whether the underlying settlement involves Bureau of Workers’ Compensation benefits
• No AG notification required

📋 Statutory References

• Ohio Revised Code §§ 2323.58–2323.585
• 26 U.S.C. § 5891 — Federal tax treatment

⚠️ Disclaimer: This guide provides general information about Ohio structured settlement law for educational purposes only. It does not constitute legal, financial, or tax advice. Laws change — always verify with current state statutes and consult a licensed attorney. Read full disclaimer →