A minor's compromise is a legal process used to obtain court approval for a settlement involving a minor's claim—commonly in personal injury cases. Because minors cannot legally enter into binding contracts, the law requires court oversight to ensure that any settlement is fair, reasonable, and in the minor’s best interest.

To initiate the process, a parent or legal guardian—usually with the assistance of an attorney—files a petition with the court.  The petition outlines the terms of the settlement and requests judicial approval.

Once the court approves the settlement, the funds are usually deposited into a blocked account, trust, or guardianship account. These funds are held and safeguarded until the minor reaches adulthood, ensuring they are used solely for the minor’s benefit.

In California, a minor’s compromise is required for all settlements involving a minor’s claim, even if no formal lawsuit has been filed.