How a veterans disability lawyer Disability Settlement Can Affect a Divorce Case

Jim's 58-year-old client is permanently disabled from his time in the military. He receives a monthly Pension benefit from the Department of Veterans Affairs.

He wants to know if a verdict of a juror will affect his VA benefits. The answer is that it will not. However, it will have an impact on his other sources of income.

Do I have the right to receive compensation for an Accident?

You may be eligible for a settlement if you were in the military but are now permanently disabled because of injuries or illnesses. This settlement will help pay you for medical bills, lost income and other expenses resulting from your illness or injury. The kind of settlement you'll receive will depend on whether your condition is service-connected or not connected, the VA benefits you are eligible for, and the amount your injury or accident will cost to treat.

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

The answer is contingent upon 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 period rather than a single payment, and the amount paid by the defendant is calculated to offset any existing VA benefits. In contrast, a lump sum payment will likely affect existing benefits since the VA considers it income and will annualize it. If Jim has excess assets after the settlement is annually adjusted then he is eligible to be eligible for the pension benefit. However, his assets must be less than a certain threshold that the VA has determined to be a financial necessity.

Do I Need to Hire an Attorney?

Many spouses, military personnel, and former spouses are confused about VA disability compensation and its effect on money issues in divorce cases. Some people think, for instance, that the Department of Veterans Affairs compensation payments can be split as the military retirement in divorce proceedings or that they're "off limits" when calculating child support and alimony. These misconceptions may lead to serious financial errors.

While it is possible to submit an initial claim for disability benefits on your own, most disabled veterans require the assistance of a skilled attorney. A disability attorney for veterans can look over your medical records and gather the evidence required to present a convincing argument before the VA. The lawyer can also help to submit any appeals you require to secure the benefits you deserve.

The majority of VA disability lawyers do not charge for consultations. The government will also pay the lawyer directly from your award of retroactive benefits. This is a benefit of the Equal Access to Justice Act. The fee agreement should clearly specify the amount of retroactive benefits that will be paid to your lawyer. A fee agreement could state for instance that the government will pay the attorney up 20% of retroactive benefits. You are responsible for any additional sums.

Can I Garnish My VA Benefits?

When disabled veterans receive compensation from the VA it is in the form of monthly payments. These payments are designed to compensate for the effects of injuries, diseases or disabilities that were suffered or aggravated during the course of a veteran's service. Like all income, the veterans disability benefits could be subject to garnishment.

Garnishment is a legal action which allows a court require an employer or government agency to withhold funds from the pay of an employee who is in debt and to send them directly to an individual creditor. In the event of a divorce garnishment can be used for child or spousal support.

There are certain situations where the benefits of a veteran can be garnished. The most frequent scenario involves veterans who have waived their military retirement to get disability compensation. In these situations the amount of pension that is allocated to disability pay can be garnished for family support obligations.

In other situations the benefits of a veteran can be withdrawn to cover medical expenses or past due federal student loans. In these cases the court could go directly to the VA for the information they require. It is vital for disabled veterans to work with a reputable attorney to ensure that their disability benefits are not being snatched away. This can prevent them from having to rely on payday lenders or private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a huge aid to veterans and their families. However they have their own set complications. For instance, if a veteran gets divorced and receives a VA disability settlement, they should be aware of how this will affect the benefits they receive.

In this regard, a major question is whether or not disability payments count as assets which can be divided in a divorce. This question has been resolved in a variety of ways. A Colorado court of appeals ruling determined that VA disability payments were not property and could not be divided in this manner. The U.S. Supreme Court ruled in Howell, that garnishing a veteran’s VA disability payments for the purpose of alimony was in violation of USFSPA.

Another issue related to this subject is how disability benefits are treated to determine child maintenance and support. Both the USFSPA, and the Supreme Court, prohibit states from counting disability benefits as income. Certain states use an alternative approach. For instance, Colorado adds up all sources of income to determine how much in support a spouse needs and then adds the disability payments to take into the fact that they are tax-free.

It is also important for veterans to know how their disability benefits will be affected if they get divorced and how their spouses who divorced them can take advantage of their benefits. By being informed about these issues, vets can protect their income as well as avoid the unintended consequences.