How a Veterans Disability Settlement Can Affect a Divorce Case

Jim's client, 58 years old, is permanently disabled due to his service in the military. He receives a monthly pension benefit from the Department of veterans disability law firms Affairs.

He would like to know how the jury's verdict will impact his VA benefits. It will not. However, it could 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 served in the military but are now permanently disabled because of injuries or illnesses. This settlement can help compensate you for medical bills, lost income, and other costs that resulted from your illness or injury. The type of settlement that you could receive will depend on whether your illness or injury is a result of a service connection, the 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, however, he can claim an VA Pension that offers cash and medical treatment for free dependent on the amount of money he needs. He would like to know if a personal injury settlement could affect his ability to get this benefit.

The answer is contingent upon whether the settlement is a lump sum or a structured one. Structured settlements consist of payments over a period of time, rather than one single payment. The amount paid by defendant is calculated to offset the existing VA benefits. In contrast, a lump sum settlement will probably affect existing benefits since the VA considers it to be income and will annually calculate it. If Jim has assets that are not used up after the settlement is annually adjusted the applicant can apply again to receive the Pension benefit. However, his assets must be less than a certain threshold that the VA has agreed establishes financial necessity.

Do I need to hire an attorney?

Many spouses, service members, and former spouses have questions about VA disability payments and their impact on money issues during divorce. Among other things, some people believe that the Department of Veterans Affairs' compensation payments are able to be divided like a military pension in divorce or are "off limits" in calculation of child support and alimony. These misconceptions could lead serious financial errors.

While it is possible to do an initial claim for disability benefits on your own, most disabled veterans can benefit from the assistance of a skilled attorney. An experienced veteran's disability lawyer can examine your medical records and gather the necessary evidence needed to build a strong case at the VA. The lawyer can also help to make any appeals you need to get the benefits you're entitled.

Additionally, the majority of VA disability lawyers charge no fees for consultations. The government will also pay the lawyer directly from your payment of retroactive benefits. This is one of the benefits of the Equal Access to Justice Act. Your fee agreement should clearly define the percentage of retroactive benefits to be paid to your lawyer. For instance the fee agreement could stipulate that the government will pay the attorney up to 20% of the retroactive benefits or give. Any additional amounts are your responsibility.

Can I Garnish My VA Benefits?

If a disabled veteran receives compensation from the VA it is received in the form of monthly payments. The funds are intended to compensate for some of the consequences of illnesses, disabilities, or injuries sustained during or aggravated during a veteran's military service. Like all incomes, veterans disability benefits can be subject to garnishment.

Garnishment is a legal action that allows a judge to order an employer or government agency to withhold funds from the wages of a person who owes money, and then send them directly to the creditor. In the case of a divorce, garnishment could be used to pay spousal maintenance or child support.

However, there are certain situations where disability benefits can be refunded. The most frequent is the veteran who waived his retirement from the military in order to receive disability compensation. In these situations the pension portion that is devoted to disability compensation can be garnished to cover the obligations of family support.

In other cases, a veteran’s benefits can also be garnished to pay medical bills or federal student loans that are past due. In these instances a court may be able to the VA to get the required information. It is essential for disabled veterans disability lawyers to retain a knowledgeable attorney to ensure that their disability benefits aren't taken away. This can prevent them from relying on payday lenders and private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a huge assistance to veterans and their families. However, they come with their own set of complications. If a veteran is divorced and receives a VA settlement and is eligible, they should be aware of the implications to their benefits.

A major issue in this regard 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 found that VA disability payments were not property and could not be divided in this way. Another option is the U.S. Supreme Court ruling in Howell that held that garnishing a veteran's VA disability payments to pay the payment of alimony is in violation of the Uniformed Services Former Spouses Protection Act (USFSPA).

Another concern related to this topic is the treatment of disability benefits to children for support and maintenance. The USFSPA and the Supreme Court both forbid states from counting disability payments as income to be used for this purpose. Certain states employ a different approach. For instance, veterans Disability Colorado adds up all sources of income to determine how much in support a spouse requires and then adds disability payments to take into account that they are tax-free.

It is also essential to know how divorce affects their disability compensation and how their ex spouses could slash their benefits. By being aware of these issues, veterans can protect their income as well as avoid unintended consequences.