How a Veterans Disability Settlement Can Affect a Divorce Case

Jim's client, 58 years old, is permanently disabled as a result of his time in the military. He receives a monthly Pension benefit from the Department of Veterans Affairs.

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

Can I receive compensation in the event of an accident?

If you have served in the military and are permanently disabled because of injuries or illnesses, you could be eligible for a veterans disability settlement. This settlement will help pay you for medical bills, lost income, and other costs that resulted from your injury or sickness. The type of settlement you'll get depends on whether or not your condition is service-connected or not connected, what VA benefits you qualify for, as well as the amount your injury or accident will cost to treat.

For example, Jim is a 58-year veteran who was diagnosed with permanent disabilities after two years of service in the Vietnam War. He doesn't have enough work quarters to qualify for Social Security disability benefits but there is a VA Pension benefit, which offers cash and free medical assistance that is based on financial need. He wants to know if a personal injury settlement will affect his ability to be eligible for this benefit.

The answer depends on whether the settlement is in the form of an unintentional lump sum or a structured settlement. Structured settlements are based on payments over time, rather than one payment. The amount paid by the defendant is calculated to offset existing VA benefits. A lump sum payment will impact any existing VA benefits as the VA will annually evaluate and consider it to be income. If Jim has assets that are not used up after the settlement is annually adjusted and he wants to reapply, he will receive the Pension benefit. However, his assets must be under a limit that the VA has set to establish financial necessity.

Do I require an attorney?

Many spouses, service members and former spouses are confused about VA disability compensation and the impact it has on money issues in a divorce case. Some people think, for instance, that Department of Veterans Affairs compensation payments can be split like a military retirement in a divorce case or that they're "off limits" when calculating child support and Alimony. These misconceptions can result in financial mistakes which can have serious consequences.

While it is possible to submit an initial claim for disability benefits by yourself, the majority of disabled veterans benefit from the assistance of a skilled lawyer. An experienced veteran's disability lawyer can review your medical documents and gather the required evidence to present a strong case to the VA. The lawyer can also file any appeals you may need in order to get the benefits you deserve.

Moreover, most VA disability lawyers do not charge fees 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 amount of retroactive past due benefits your lawyer will be paid should be clearly stated in your fee agreement. For instance the fee agreement could stipulate that the government will pay the attorney up to 20% of retroactive benefits or pay. The attorney is responsible for any additional costs.

Can I Garnish My VA Benefits?

When disabled veterans receive compensation from the VA it is in the form of monthly payments. The purpose of the payments is to alleviate some of the effects of disability, illness or injuries sustained or aggravated by the veteran's military service. Like other income sources, veterans disability lawyer disability benefits can be subject to garnishment.

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

However, there are some circumstances where a veteran's disability benefits can be garnished. The most common scenario is veterans who have waived their military retirement in order to claim disability compensation. In these situations the portion of the pension apportioned to disability pay could be garnished to meet family support obligations.

In other instances, a veteran's benefit may be seized in order to cover medical expenses or federal student loans that are past due. In these situations, a court can go directly to the VA to obtain the information they need. It is important for a disabled veteran to work with a reputable lawyer to ensure that their disability benefits aren't being snatched away. This will help them avoid having to depend on payday loans or private loans. lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a big aid to veterans and their families, however they don't come without their own set of complications. For instance, if a veteran gets divorced and is awarded a VA disability settlement, they need to know what effect this will have on the benefits they receive.

A major issue in this context is whether or not disability payments are considered divisible assets in divorce. This question has been resolved in two ways. One method is an Colorado court of appeals ruling that concluded that VA disability payments are not property and therefore cannot be divided as such. Another option is the U.S. Supreme Court ruling in Howell which ruled that garnishing a veteran's VA disability payments to pay Alimony is against the Uniformed Services Former Spouses Protection Act (USFSPA).

Another issue related to this subject is how disability benefits are treated in the context of child maintenance and support. The USFSPA and the Supreme Court both forbid states from counting disability payments as income for these purposes. However, certain states have adopted a different approach. For instance, Colorado adds up all sources of income to determine the amount in support a spouse needs and then adds up the disability payments to take into account that they are tax free.

It is also important that veterans understand how their disability compensation will be affected when they get divorced and how their ex-spouses may take advantage of their benefits. By being informed about these issues, veterans can protect their compensation as well as avoid unintended consequences.