Alabama § 25-5-83 - Commutation of Compensation to Lump Sum Payments.

Full text of Alabama Code of Alabama § 25-5-83 — Commutation of Compensation to Lump Sum Payments., with citation guidance and answers to common questions.

§ 25-5-83. Commutation of Compensation to Lump Sum Payments.

By agreement of the parties and with approval of the court, the amounts of compensation payable periodically, under this article and Article 4 of this chapter, may be commuted to one or more lump sum payments. No commutation shall be approved by the court unless the court is satisfied that it is in the best interest of the employee or the employee’s dependent, in case of death, to receive the compensation in a lump sum rather than in periodic payments. In making the commutations, the lump sum payment shall, in the aggregate, amount to a sum equal to the present value of all future installments of compensation calculated on a six percent basis.

Source: official Alabama text · Last verified 2026-08-27

Frequently Asked Questions About Alabama § 25-5-83

What does Code of Alabama § 25-5-83 cover?

Section 25-5-83 ("Commutation of Compensation to Lump Sum Payments.") is part of the Code of Alabama, the codified statutory law of Alabama. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.

How do I cite Alabama § 25-5-83?

A common citation format is "Code of Alabama § 25-5-83" (Alabama). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.

Is this the official text of Alabama law?

No. This page is for research and education and may not include the most recent amendments. For official current law, check the Alabama official source linked on this page or consult a licensed Alabama attorney.

How does Alabama § 25-5-83 apply to my situation?

Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Alabama can advise on how this section applies to you. Contact your state or local bar association for a referral.

Sources & Verification

Not legal advice. Verify against the official source and consult a licensed attorney in Alabama.