How a Veterans Disability Settlement Can Affect a Divorce Case

Jim's 58-year-old client is permanently disabled as a result of his time in the military. He receives a monthly pension benefit from the Department of veterans disability law firm Affairs.

He would like to know if a jury verdict will impact his VA benefits. The answer is not. But it will have some impact on the other sources of income he has.

Can I Get Compensation for an Accident?

If you've been in the military and are permanently disabled due to injuries or veterans disability illnesses, you may be eligible for a veterans disability settlement. This settlement could help you receive compensation for your medical bills, lost wages, and other expenses that result from your injury or illness. The type of settlement you'll be able to receive will depend on whether your health condition is non-service connected, the VA benefits you are eligible for, as well as the amount 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 in the Vietnam War. He does not have enough work space to qualify for Social Security Disability benefits, however, he does have an VA Pension that offers free medical treatment and cash according to his financial need. He would like to understand how a personal injuries settlement could affect his eligibility to receive this benefit.

The answer will depend on whether the settlement is in the form of one lump sum or a structured settlement. Structured settlements consist of payments over time instead of one lump sum payment. The amount paid by defendant is calculated to offset the existing VA benefits. A lump sum payment will affect any existing VA benefits since the VA will annualize and consider it as income. In either case, if excess assets remain after the twelve-month period when the settlement is annualized Jim may be eligible to apply again for the 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 spouses, service members and former spouses have questions about VA disability benefits and their impact on financial issues during divorce. There are many other reasons, but some people think that the Department of Veterans Affairs' compensation payments can be divided like a military pension in divorce or are "off limits" in the calculation of child support and Alimony. These misconceptions may lead to serious financial mistakes.

While it is possible to submit an initial claim for disability benefits on your own, the majority of disabled veterans benefit from the assistance of a skilled attorney. A disability attorney for veterans can look over your medical records and gather the necessary evidence to prove your case to the VA. The lawyer can also help to file any appeals that you require to receive the benefits you deserve.

Additionally, the majority of VA disability lawyers do not charge fees for consultations. In addition the lawyer will typically be paid by the government directly from your retroactive past-due benefits. This is one of the benefits 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. A fee agreement may stipulate, for example, that the government would pay the attorney up 20 percent of retroactive benefits. Any additional amount is your obligation.

Can I Garnish My VA Benefits?

The VA pays monthly compensation to disabled veterans. The purpose of the payments is to compensate for some of the effects of disabilities, diseases, or injuries sustained during or aggravated during a veteran's military service. The veterans disability benefits are subject to garnishment, just like other incomes.

Garnishment allows a court order that an employer or government agency deduct money from the pay of a person who is in the process of paying an amount and then pay it directly to a creditor. In the case of a divorce, garnishment may be used to pay spousal support or child support.

There are some situations where veterans' benefits could be encashable. Most often, it is the case of a veteran who has waived his military retirement in order to receive disability compensation. In these instances, the amount of pension that is attributed to disability benefits could be garnished to meet family support obligations.

In other cases, a veteran's benefits can be withdrawn to cover medical expenses or past due federal student loans. In these cases a judge can refer a case directly to the VA to obtain the information they require. It is crucial for disabled veterans to find a competent lawyer to ensure that their disability benefits aren't removed. This will stop them from relying on payday lenders and private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a huge help for veterans disability lawsuit and their families, however they're not without their own set of complications. If a veteran is divorced and receives a VA settlement it is important to be aware of the impact this could have to the benefits they receive.

A major issue in this regard is whether or not the disability payments are considered divisible assets in a divorce. This question has been resolved in two ways. One option is an Colorado court of appeals decision, which found that VA disability payments are not property and therefore cannot be divided in this 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 issue is the treatment of disability benefits for child support and maintenance. The USFSPA and the Supreme Court both forbid states from claiming disability benefits as income for these purposes. However, certain states have chosen to take different approaches. For instance, Colorado adds up all sources of income to determine the amount in support a spouse is entitled to and then pluses up the disability benefits to take into account that they are tax free.

Finally, veterans disability it is important for veterans to understand how their disability benefits will be affected when they get divorced and how their spouses' ex-spouses could garnish their compensation. By knowing about these questions, veterans can guard their earnings and avoid any unwanted consequences.