How a Veterans Disability Settlement Can Affect a Divorce Case

Jim's 58 year old client is permanently disabled because of his military service. He receives a monthly pension benefit from the Department of veterans disability lawyer Affairs.

He would like to know how the verdict of a jury will impact his VA benefits. The answer is that it will not. However, it will affect his other sources of income.

Do I have the right to receive compensation for an accident?

You may be eligible for a settlement if were in the military but are now permanently disabled because of injuries or illnesses. This settlement will pay you for medical expenses, lost income and other costs that resulted from your injury or sickness. The type of settlement you'll get will depend on whether the health condition is non-service connected, which VA benefits you are eligible for, and how much your injury or accident will cost to treat.

Jim, a 58-year veteran of Vietnam, was diagnosed as having permanent disabilities as a result of his two years of service. He isn't in a position to have enough space for work to be eligible for Social Security Disability benefits, but he has the VA Pension which offers cash and medical treatment for free according to his financial need. He wants to be aware of what the implications of 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 a lump sum or a structured settlement. Structured settlements are payments made over a time frame rather than in a single payment and the amount received by the defendant is used to offset any existing VA benefits. In contrast, a lump sum settlement will probably affect existing benefits since the VA considers it a tax-deductible income and will annually increase it. If Jim has excess assets after the settlement is annually adjusted and he wants to reapply, he will receive the Pension benefit. However the assets he has to be below a threshold the VA has determined to be a financial necessity.

Do I need to hire an attorney?

Many spouses, service members, and former spouses are concerned about VA disability payments and their impact on money issues during divorce. Among other things, some people think that the Department of Veterans Affairs' compensation payments can be divided as a military pension in a divorce or that they 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 lawyer. A veteran's disability attorney will review your medical records to gather the necessary evidence to make a strong argument before the VA. The lawyer can also help to make any appeals you require to obtain the benefits you're entitled to.

In addition, the majority of VA disability lawyers charge no fees for consultations. In addition the lawyer will typically be paid by the government directly from your retroactive past due benefits. This is a benefit of the Equal Access to Justice Act. Your fee agreement should specify clearly the amount of retroactive benefits that will be paid to your lawyer. For example the fee agreement could provide that the government can pay the lawyer up to 20% of retroactive benefits or provide. You will be accountable for any additional sums.

Can I Garnish My VA Benefits?

The VA provides monthly compensation to disabled veterans. The payments are meant to offset some of the effects of diseases, disabilities or injuries incurred during or aggravated due to a veteran's military service. The veterans disability benefits are subject to garnishment, as is any other income.

Garnishment is a legal action which allows a court make an order to an employer or government agency to omit funds from the pay of someone who is in debt and to send them directly to a creditor. In the case of a divorce, garnishment may be used to pay spousal support or child support.

However, there are some situations where disability benefits could be refunded. The most common scenario is veterans who have waived their military retirement to receive disability compensation. In these situations the amount of pension that is devoted to disability pay can also be garnished in order to pay for family support obligations.

In other circumstances it is possible for a veteran's benefits to be seized to pay medical expenses or past due federal student loans. In these instances a court may be able to go straight to the VA to get the required information. It is essential for a disabled veteran to work with a reputable lawyer to ensure that their disability benefits aren't taken away. This will help them avoid having to depend on payday and private loan lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be an enormous assistance to veterans and their families, but they come with their own set of challenges. If a veteran divorces and receives an VA settlement it is important to know what this will do to their benefits.

In this regard, the main question is whether disability payments are considered to be assets that can be divided in divorce. The question has been answered in two ways. One is through an Colorado court of appeals ruling that concluded that VA disability payments are not property and therefore cannot be divided in this way. Another way is through a U.S. Supreme Court ruling in Howell that ruled that garnishing the veteran's VA disability benefits to pay the payment of alimony is in violation of the Uniformed Services Former Spouses Protection Act (USFSPA).

Another concern related to this issue is the handling of disability benefits to children for support and maintenance. Both the USFSPA, and the Supreme Court, prohibit states from claiming disability benefits as income. Certain states use different approaches. For instance, Colorado adds up all sources of income to determine the amount in support a spouse will need and then adds the disability payments to take account that they are tax-free.

It is also essential that veterans are aware of how divorce can affect their disability benefits and how ex-spouses can slash their income. By being informed about these issues, vets can safeguard their benefits and avoid any unintended consequences.