10 Things Your Lawyer Won't Tell You

1. "You might win your lawsuit and wind up with nothing."

Expecting a bundle from a big lawsuit? Don't start spending it yet. You may be shocked to learn how little you'll get to keep.

Lawyers may not like to mention it, but federal taxes — at a rate of 25 to 35% — can easily wipe out most of the money you win in civil lawsuits; bodily injury suits are the only exemption. You'll probably even have to pay federal taxes on the part that's earmarked for your attorney, unless you live in the one of the few regions, including Alabama, Michigan and Texas, where federal appeals courts have sided with taxpayers.