Insurance companies or defense lawyers may bring up this phrase to argue that an injured person no longer has a legal parent-child relationship and therefore should not claim certain losses tied to that relationship, such as caregiving responsibilities, household support, or sometimes emotional harm. What it actually means is a court order that permanently ends a parent's legal rights and duties toward a child. After that order, the parent generally no longer has authority to make decisions for the child, seek custody or visitation, or object to an adoption. The duty to pay future child support may also change depending on the case and the court's order.

This is one of the most serious rulings a family court can make. It can happen voluntarily, such as in an adoption case, or involuntarily when the court finds severe abuse, neglect, abandonment, or inability to provide a safe home. In Hawaii, termination proceedings are governed largely by the Child Protective Act, Hawaii Revised Statutes Chapter 587A, and adoption-related rules under Chapter 578.

For an injury claim, the issue can affect who has legal standing to sue on a child's behalf, who may recover certain damages, and who can make settlement decisions. If parental rights have been terminated, a former parent usually cannot act as the child's legal representative in a personal injury case.