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 receives a monthly pension from the Department of veterans disability law firms (published on www.gawonsilver.com) Affairs.

He would like to know how a jury award will impact his VA benefits. The answer is not. However, it will have an impact on the income sources of his other income sources.

Do I have the right to receive compensation in the event of an accident?

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

For example, Jim is a 58-year old veteran who was diagnosed with permanent disabilities based on two years of service in the Vietnam War. He isn't in a position to have enough work space to qualify for Social Security Disability benefits, but he has the VA Pension which offers free medical care and cash depending on the financial needs of his. He would like to know how a personal injury settlement could affect his eligibility to receive this benefit.

The answer will depend on whether the settlement is a lump sum or a structured one. Structured settlements consist of payments over time, rather than a single payment. The amount that defendant pays is calculated to offset the existing VA benefits. A lump sum payout is likely to affect existing benefits since the VA considers it income and will annualize it. If Jim has excess assets after the settlement is annually adjusted the applicant can apply again to be eligible for the pension benefit. However the assets must be below a threshold the VA has set that establishes financial necessity.

Do I Need to Hire an Attorney?

Many spouses, military personnel, and former spouses are confused about VA disability compensation and its impact on money issues in a divorce case. In addition, some people think that the Department of Veterans Affairs' compensation payments can be divided like a pension from a military service in a divorce or that they are "off limits" in calculation of child support and alimony. These misconceptions could lead to serious financial errors.

It is possible to submit an application for disability benefits yourself, but most disabled veterans would require the help of a professional lawyer. An experienced veteran's disability lawyer can examine your medical records and gather the necessary evidence to support your case to the VA. The lawyer can also file any appeals that you may require to get the benefits you deserve.

Furthermore, the majority of VA disability lawyers don't charge fees for consultations. Additionally that the lawyer will normally be paid by the government directly out of your award of retroactive past-due benefits. This is a benefit of the Equal Access to Justice Act. The fee agreement should specify clearly the proportion of retroactive benefits to be paid to your lawyer. A fee agreement could say for instance that the government will give the attorney up to 20 percent of retroactive benefits. You will be responsible for any additional amounts.

Can I Garnish My VA Benefits?

The VA offers monthly payments to disabled veterans. The payments are intended to compensate for the effects of injuries, diseases or disabilities that were sustained or aggravated during the course of a veteran's service. Like other income sources, benefits for veterans with disabilities are subject to garnishment.

Garnishment is a court-ordered procedure that an employer or a government agency withhold money from the wages of a person who is in the process of paying an obligation and pay it directly to the creditor. In the event of divorce, garnishment may be used to pay child or spousal maintenance.

There are situations where a veteran's benefits can be encashable. The most common situation involves those who have renounced their military retirement in order to claim disability compensation. In these cases the amount of pension allocated to disability payments can be garnished for family support obligations.

In other instances, a veteran's benefit may be garnished to pay medical expenses or federal student loans that are over due. In these situations the court can go directly to the VA to obtain the information they need. It is crucial for a disabled veteran to hire a knowledgeable attorney to ensure that their disability benefits aren't taken away. This will prevent them from relying on payday lenders and private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a major aid to veterans and their families, but they come with their own set of complications. For instance, if a veteran gets divorced and is awarded a VA disability settlement, they need to know how this will affect their benefits.

A major issue in this regard is whether disability payments are considered to be divisible assets in a divorce. This issue has been addressed in a couple of ways. One is through the Colorado court of appeals ruling that concluded that VA disability payments are not property and cannot be divided in that way. The U.S. Supreme Court ruled in Howell that garnishing a veteran's VA disability payments for alimony was a violation of USFSPA.

Another concern related to this subject is the treatment of disability benefits to children for support and maintenance. Both the USFSPA, and the Supreme Court, prohibit states from counting disability benefits as income. Some states have different approaches. Colorado for instance adds all income sources together to determine the amount required to support a spouse and then adds on disability payments to reflect their tax-free status.

It is also important for veterans to know how their disability compensation will be affected if they become divorced and how their spouses who divorced them can garnish their compensation. By knowing about these issues, veterans can protect their earnings and avoid any unintended consequences.