How a Veterans Disability Settlement Can Affect a Divorce Case

Jim's 58 year old client is permanently disabled due to his time in the military. He is able to receive a monthly pension from the Department of veterans disability lawsuit Affairs.

He wants to know if the jury's verdict will affect his VA benefits. It will not. But it will have an impact on the other sources of income he has.

Can I receive compensation for an accident?

You could be eligible for a settlement in the event that you have served in the military, but are now permanently disabled because of injuries or illnesses. This settlement can help compensate you for medical expenses, lost income and other expenses that resulted from your injury or sickness. The type of settlement you will receive will depend on whether your illness or injury is a result of a service connection, the VA benefits you qualify for, as well as the cost to treat your injury or accident.

For instance, Jim is a 58-year old veteran who was diagnosed with permanent disabilities based on two years of service during the Vietnam War. He does not have enough work space to qualify for Social Security Disability benefits, but he has a VA Pension that provides cash and medical treatment for free dependent on the amount of money he needs. He wants to understand how a personal injury lawsuit could affect his eligibility to receive this benefit.

The answer is dependent on whether the settlement is a lump-sum or a structured one. Structured settlements require payments over time instead of one payment. The amount paid by the defendant is calculated to offset the existing VA benefits. A lump sum payment will impact any existing VA benefits as the VA will annually calculate and consider it income. If Jim has surplus assets after the settlement is annually adjusted then he is eligible to receive the Pension benefit. However the assets he has to be below a threshold the VA has determined to be a financial necessity.

Do I need to hire an attorney?

Many spouses, members of the military and former spouses have concerns about VA disability payments and their impact on financial issues during divorce. Among other things, some people think that the Department of Veterans Affairs' compensation payments are able to be divided as a military pension in divorce or are "off limits" in the calculation of child support and Alimony. These misconceptions can result in financial mistakes which can have serious consequences.

While it is possible to submit an initial claim for disability benefits on your own, most disabled veterans get the assistance of a skilled lawyer. An experienced veteran's disability lawyer can review your medical records and gather all the necessary evidence to make a convincing case at the VA. The lawyer will also be able to file any appeals you may require to receive the benefits you're entitled.

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 out of the retroactive past-due benefits. This is a benefit of the Equal Access to Justice Act. The amount of retroactive past-due benefits your lawyer will receive must be specified in your fee agreement. For instance an agreement on fees could state that the government will pay the lawyer up to 20% of the retroactive benefits or give. You are responsible for any additional amounts.

Can I Garnish My VA Benefits?

The VA pays monthly compensation to disabled veterans. The payments are meant to alleviate some of the effects of diseases, disabilities, or injuries sustained during or aggravated by a veteran's military service. Like all incomes, veterans disability benefits can be subject to garnishment.

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

However, there are some situations in which a veteran's disability benefits may be garnished. The most common scenario involves the veteran who has waived their military retirement to receive disability compensation. In these situations the amount of pension that is devoted to disability benefits can be garnished in order to fulfill the family support obligations.

In other circumstances it is possible for a veteran's benefits to be garnished to pay for medical expenses or past due federal student loans. In these instances, a court may be able to the VA to obtain the necessary information. It is essential for disabled veterans to find a competent lawyer to ensure that their disability benefits aren't removed. This can help them avoid having to rely on payday loans and private loans. lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a huge benefit for veterans and their families, but they come with their own set of challenges. If a veteran is divorced and receives a VA settlement then they must be aware of what this might do to the benefits they receive.

A major issue in this regard is whether or law not disability benefits are considered divisible assets in a divorce. This issue has been addressed in a variety of ways. A Colorado court of appeals decision determined that VA disability payments were not property and could not be divided this way. The U.S. Supreme Court ruled in Howell, that garnishing a veteran's VA disability payments for Alimony was against the USFSPA.

Another concern with this topic is how the disability benefits are treated to determine child maintenance and support. Both the USFSPA, as well as the Supreme Court, prohibit states from counting disability benefits as income. However, certain states have taken a different approach. For instance, Colorado adds up all sources of income to determine the amount in support a spouse will need and then pluses up the disability benefits to take into account that they are tax free.

It is also important that veterans know how divorce will affect their disability compensation and how their ex spouses can garnish their compensation. By being informed about these issues, vets can safeguard their benefits as well as avoid the unintended consequences.