How a Veterans Disability Settlement Can Affect a Divorce Case

Jim's client, 58 years old, is permanently disabled from his time in the military. He receives a monthly pension from the Department of Veterans Affairs.

He would like to know how the jury's verdict will affect his VA benefits. The answer is that it will not. However, it will affect the other sources of income he earns.

Can I claim compensation for an accident?

If you have served in the military, and are permanently disabled because of injuries or illnesses, you could be eligible for a veteran disability settlement. This settlement can assist in compensating you for medical bills, lost income, and other expenses that resulted from your injury or sickness. The type of settlement you'll be able to receive depends on whether your health condition is non-service connected, which VA benefits you are eligible for, and how much your accident or injury will cost to treat.

For instance, Jim is a 58-year veteran who was diagnosed with permanent disabilities based on two years of service during the Vietnam War. He hasn't got enough work space to be eligible for Social Security disability benefits but there is a VA Pension benefit that offers cash and medical treatment for free based on financial need. He would like to understand how a personal injury settlement will affect his eligibility to get this benefit.

The answer depends on whether the settlement is in the form of a lump sum or a structured settlement. Structured settlements are the ones that are paid over a time frame rather than a single payment and the amount paid by the defendant is used to offset any existing VA benefits. However, a lump sum payout is likely to impact any benefits already in place because the VA considers it income and will annualize it. If Jim has surplus assets after the settlement is annualized the applicant can apply again to be eligible for the pension benefit. However, his assets must be below a minimum threshold that the VA has set that establishes financial necessity.

Do I need to employ an attorney?

Many service members, spouses and former spouses are confused about VA disability compensation and its effect on the financial aspects of divorce cases. Some people believe, among other things, that Department of Veterans Affairs compensation payments can be divided like an army retirement in divorce proceedings or that they're "off limits" when it comes to calculating child support and Alimony. These misconceptions can lead to financial errors that have serious repercussions.

While it is possible to submit an initial claim for disability benefits on your own, most disabled veterans can benefit from the assistance of an experienced lawyer. An experienced veteran's disability lawyer will review your medical documents and gather the required evidence to support your case at the VA. The lawyer can also help to file any appeals you may require to obtain the benefits you deserve.

Additionally, the majority of VA disability lawyers do not charge fees for consultations. In addition, the lawyer will generally be paid by the government directly from your retroactive past-due benefits. This is a benefit of the Equal Access to Justice Act. The percentage of retroactive past-due benefits that your lawyer will be paid should be clearly stated in your fee agreement. For example your fee agreement may specify that the government will pay the lawyer up to 20% of retroactive benefits or pay. You will be accountable for any additional costs.

Can I Garnish My VA Benefits?

The VA provides monthly compensation to disabled veterans. The payments are meant to compensate for some of the effects of disabilities, diseases or injuries incurred during or aggravated by the veteran's military service. The benefits for veterans disability attorneys with disabilities are subject to garnishment like any other income.

Garnishment permits a court order that an employer or government agency withhold money from the pay of an individual who owes an obligation and pay it directly to a creditor. In the event of divorce, garnishment can be used to pay child or spousal maintenance.

There are a few situations in which a veteran's disability benefits could be repaid. Most often, it is the case of a veteran who has waived his retirement from the military in order to receive disability compensation. In these cases the part of pension that is allocated to disability benefits can be garnished in order to meet family support obligations.

In other instances, a veteran’s benefits can also be garnished in order to pay medical expenses or federal student loans that are over due. In these instances, a court can go directly to the VA for the information they require. It is essential for disabled veterans to work with a reputable lawyer to ensure that their disability benefits are not being snatched away. This can stop them from having to rely on payday lenders and private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a huge benefit for veterans and their families, however they're not without their own set of challenges. If a veteran gets divorced and receives a VA settlement it is important to know what this will do to the benefits they receive.

One of the major issues in this context is whether or not disability payments count as divisible assets in a divorce. This issue has been settled in a couple of ways. A Colorado court of appeals ruling determined that VA disability payments were not property and could not be divided this manner. Another method is an U.S. Supreme Court ruling in Howell which held that garnishing the veteran's VA disability payments to pay for alimony is a violation of the Uniformed Services Former Spouses Protection Act (USFSPA).

Another concern that is related to this topic is how the disability benefits are treated for purposes of child support and maintenance. The USFSPA and the Supreme Court both forbid states from counting disability benefits as income to be used for this purpose. However, certain states have taken an alternative approach. For instance, Colorado adds up all sources of income to determine the amount in support a spouse is entitled to and then adds the disability payments to take into account that they are tax-free.

It is also crucial to know how divorce affects their disability benefits and how their spouses who divorced can garnish their compensation. By being informed about these issues, vets can ensure their compensation and avoid any unintended consequences.