How a Veterans Disability Settlement Can Affect a Divorce Case

Jim's client, a 58-year-old man is permanently disabled as a result of his military service. He receives a monthly Pension benefit from the Department of Veterans Affairs.

He would like to be aware of whether a verdict by a jury will affect his VA benefits. It won't. However, it will have an impact on the income sources of his other income sources.

Can I 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 can allow you to get compensation for medical bills, lost wages and other costs resulting from your illness or injury. The kind of settlement you will receive will depend on whether or not your illness or injury is related to service, what VA benefits you are eligible to receive, and the amount to treat your injury or accident.

Jim who is a 58-year veteran of Vietnam, was diagnosed as having permanent disabilities due to his two years of service. He hasn't got enough work space to be eligible for Social Security disability benefits but he does have a VA Pension benefit, which offers cash and free medical assistance in accordance with financial need. He wants to know if a personal injury settlement could affect his ability to be eligible for this benefit.

The answer is dependent on whether the settlement is a lump-sum or a structured one. Structured settlements consist of payments over a period of time rather than one payment. The amount paid by defendant is calculated to offset existing VA benefits. A lump sum payment will affect any existing VA benefits since the VA will annualize and consider it income. In either case, if excess assets are left after the period of twelve months after the settlement is annually recalculated, Jim could be eligible for a new Pension benefit but only if his assets are below a certain threshold that the VA determines to be a financial need.

Do I Need to Hire an Attorney?

Many service members, spouses and former spouses have concerns about VA disability benefits and their effect on financial issues during divorce. Among other things, some people think that the Department of Veterans Affairs' compensation payments can be split like a military pension a divorce or that they are "off limits" in the calculation of child support and Alimony. These misconceptions could lead to serious financial mistakes.

While it is possible to do an initial claim for disability benefits on your own, most disabled veterans benefit from the help of a qualified attorney. A veteran's disability attorney can review your medical records to gather the necessary evidence to present a convincing case in front of the VA. The lawyer can also file any appeals that you might need to receive the benefits you deserve.

The majority of VA disability lawyers don't charge for consultations. The government will also pay the lawyer directly from your award of retroactive benefits. This is an advantage of the Equal Access to Justice Act. The proportion of retroactive past-due benefits your lawyer will be paid should be clearly outlined in your fee agreement. For instance, a fee agreement can state that the government will pay the attorney up to 20% of the retroactive benefits or give. Any additional amount is your the responsibility of the attorney.

Can I Garnish My VA Benefits?

The VA provides monthly compensation to disabled veterans. The purpose of the payments is to help offset the effects of disabilities, diseases, or injuries sustained during or aggravated during a veteran's military service. Like all incomes, veterans disability benefits could be subject to garnishment.

Garnishment lets a court order that an employer or government agency deduct money from the wages of a person who owes the debt and pay it directly to a creditor. In the event of divorce, garnishment may be used to pay spousal or child support or child support.

There are a few situations in which a veteran's benefits can be encashable. The most common scenario involves veterans who have waived their military retirement to receive disability compensation. In these scenarios the part of pension that is allocated to disability benefits can be garnished in order to meet family support obligations.

In other cases, a veteran’s benefits can also be seized in order to pay for medical expenses or federal student loans that are past due. In these cases, a court may be able to direct the case to the VA to obtain the necessary information. It is essential for disabled veterans to work with a reputable attorney to ensure that their disability benefits aren't removed. This will 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 help to veterans as well as their families. However they also come with their own set of complications. If a veteran divorces and receives a VA settlement, he or she should be aware of the impact this could have to the benefits they receive.

A major issue in this context is whether or not disability payments are considered divisible assets in divorce. The question has been answered in two ways. A Colorado court of appeals ruling determined that VA disability payments were not property and therefore could not be divided this way. The U.S. Supreme Court ruled in Howell, that garnishing a veteran's VA disability payments to pay the purpose of alimony was in violation of USFSPA.

Another concern relating to this issue is the handling of disability benefits to children for maintenance and support. Both the USFSPA, as well as the Supreme Court, prohibit states from claiming disability benefits as income. Some states have a different approach. Colorado for instance adds all income sources together to determine the amount needed to provide for a spouse. Colorado then adds disability benefits in order to account for their tax-free status.

It is also essential that veterans understand the impact divorce has on their disability compensation and how ex-spouses can garnish their compensation. By being aware of these issues, veterans can safeguard their earnings and avoid any unwanted consequences.