How a Veterans Disability Settlement Can Affect a Divorce Case

Jim's 58 year old client is permanently disabled because of his time in the military. He receives a monthly pension benefit from the Department of Veterans Affairs.

He wants to know if the jury's verdict will impact his VA benefits. It won't. It will, however, affect his other sources of income.

Can I Receive Compensation in the event of an accident?

You may be eligible for a settlement in the event that you were a soldier but are now permanently disabled because of injuries or illnesses. This settlement can assist in compensating you for medical bills, lost income and other expenses resulting from your injury or sickness. The type of settlement you can get will depend on whether the condition is service-connected or [Redirect-307] non-service connected, which VA benefits you are eligible for, and how much your injury or accident will cost to treat.

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 hasn't got enough work space to qualify for Social Security disability benefits but there is a VA Pension benefit that offers cash and free medical care dependent on financial need. He would like to be aware of what the implications of a personal injury settlement will affect his ability to be eligible for this benefit.

The answer will depend on whether the settlement is a lump sum or a structured one. Structured settlements are payments made over a time frame rather than a single payment and the amount paid by the defendant is used to offset any existing VA benefits. A lump sum payment can impact any existing VA benefits because the VA will annually evaluate and consider it income. If Jim has assets that are not used up after the settlement has been annualized and he wants to reapply, he will receive the Pension benefit. However his assets must be below a minimum threshold that the VA has set that establishes financial necessity.

Do I really need to hire an Attorney?

Many spouses, members of the military, and former spouses have concerns about VA disability benefits and their impact on money issues in divorce. Some people believe, for instance, that Department of Veterans Affairs compensation payments can be split as the military retirement in a divorce case or that they're "off limits" in calculating child support and alimony. These misconceptions could lead serious financial mistakes.

It is possible to submit an application for disability benefits yourself, but most disabled veterans would benefit from the assistance from a competent lawyer. A qualified veteran's disability lawyer will review your medical documents and gather the required evidence needed to build a strong case at the VA. The lawyer can also file any appeals you may require to receive the benefits you are entitled to.

Moreover, most VA disability lawyers don't charge fees for consultations. In addition the lawyer will usually be paid by the government directly out of the retroactive past-due benefits. This is a benefit of the Equal Access to Justice Act. Your fee agreement should clearly specify the proportion of retroactive benefits that will be paid to your lawyer. A fee agreement could state for instance that the government would pay the attorney 20 percent of retroactive benefits. You are responsible for any additional costs.

Can I Garnish My VA Benefits?

When disabled tonganoxie veterans disability lawyer receive compensation from the VA it is in the form of monthly payments. These payments are designed to help offset the effects of disabilities, diseases, or injuries sustained during or aggravated due to a veteran's military service. Like other income sources, veterans disability benefits can be subject to garnishment.

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

There are certain situations where the benefits of a veteran can be garnished. The most frequent is the veteran who waived his military retirement to receive disability compensation. In these cases the amount of pension that is devoted to disability payments can be garnished in order to cover the obligations of family support.

In other instances, a veteran's benefits can be withdrawn to cover medical expenses or past-due federal student loans. In these situations the court might be able to direct the case to the VA to obtain the necessary information. A disabled veteran should hire an experienced lawyer to protect their disability benefits. This will stop 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 aid to Lawrenceburg Veterans disability attorney and their families, but they do come with their own set-of complications. If a veteran divorces and receives an VA settlement and is eligible, they should be aware of the impact this could have to their benefits.

One of the major issues in this context is whether or not disability payments are considered to be divisible assets in a divorce. The issue has been resolved in a couple of ways. A Colorado court of appeals decision 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 for an alimony payment was a violation of USFSPA.

Another concern that is related to this issue is how disability benefits are interpreted for purposes of child maintenance and support. Both the USFSPA, as well as the Supreme Court, prohibit states from claiming disability benefits as income. However, certain states have chosen to take different approaches. For instance, Colorado adds up all sources of income to determine how much in support a spouse will need and then adds up the disability payments to take account that they are tax free.

It is also essential that guadalupe veterans disability lawyer understand how divorce can affect their disability benefits and how their ex spouses can slash their income. By being aware of these issues, vets can protect their income as well as avoid the unintended consequences.