How a Veterans Disability Settlement Can Affect a Divorce Case

Jim's client, a 58-year-old man is permanently disabled due to his military service. He receives a monthly pension benefit from the Department of Veterans Affairs.

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

Can I Receive Compensation in the event of an accident?

You could be eligible to receive a settlement if you have served in the military, but are now permanently disabled because of injuries or illnesses. This settlement will help pay you for medical expenses, lost income and other expenses resulting from your illness or injury. The type of settlement you can receive will depend on whether your injury or veterans Disability Lawsuit illness is related to service, what VA benefits you qualify for, as well as the cost to treat your accident or injury.

Jim, a 58 year veteran of the Vietnam war, was diagnosed as having permanent disabilities because of his two years of service. He doesn't have enough work quarters to be eligible for Social Security disability benefits but the VA Pension benefit that provides cash and free medical care based on financial need. He wants to be aware of how 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 one lump sum or a structured settlement. Structured settlements involve installments over time instead of a single payment. The amount paid by the defendant is calculated to offset the existing VA benefits. In contrast, a lump sum payout will likely affect any existing benefits because the VA considers it as income and will increase it. In any event, if extra assets are left over after the twelve-month period after the settlement is annually recalculated, Jim could reapply for the Pension benefit but only if his assets are lower than a threshold with which the VA accepts as establishing financial need.

Do I need to hire an Attorney?

Many service members, spouses and former spouses are concerned about VA disability benefits and their impact on money issues during divorce. There are many other reasons, but some people think that the Department of veterans disability attorney Affairs' compensation payments are able to be divided as a military pension in a divorce or that they are "off limits" in calculation of child support and Alimony. These misconceptions can lead to financial errors that have serious repercussions.

While it is possible to file an initial claim for disability benefits on your own, many disabled veterans benefit from the assistance of a professional attorney. A veteran's disability attorney can examine your medical records to gather the necessary evidence to present a convincing case in front of the VA. The lawyer can also file any appeals that you may require to get the benefits you are entitled to.

The majority of VA disability lawyers do not charge for consultations. In addition that the lawyer will normally be paid by the government directly from the retroactive past-due benefits. This is a benefit of the Equal Access to Justice Act. The amount of retroactive past due benefits your lawyer will be paid must be specified in your fee agreement. For example the fee agreement could specify that the government will pay the attorney up to 20% of the retroactive benefits or award. Any additional amounts will be your the responsibility of the attorney.

Can I Garnish My VA Benefits?

When disabled veterans receive compensation from the VA, it comes in the form of monthly payments. The payments are meant to offset some of the effects of disability, illness or injuries that are sustained or aggravated during a veteran's military service. Like all income, the benefits for veterans with disabilities are subject to garnishment.

Garnishment is a legal action that permits a court to order an employer or government agency to deduct funds from the pay of someone who owes money, and then send them directly to an individual creditor. In the event of divorce, garnishment can be used to pay spousal or child support or child support.

There are a few situations where disability benefits are able to be repaid. Most often, it is the case of a veteran who waived his retirement from the military in order to receive disability compensation. In these scenarios, the portion of pension that is devoted to disability pay can also be garnished in order to fulfill the family support obligations.

In other circumstances the benefits of a veteran can be seized to pay medical expenses or past-due federal student loans. In these situations, a court can go directly to the VA for the information they need. It is important for a disabled veteran to work with a reputable attorney to ensure that their disability benefits aren't removed. This will stop them from relying on payday lenders or private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be an enormous benefit for veterans and their families, but they're not without their own set of complications. If a person divorces and receives an VA settlement, he or she should be aware of the impact this could have to the benefits they receive.

In this case one of the major issues is whether or not disability payments are considered to be assets that could be divided during a divorce. This question has been resolved in a variety of ways. One way is by the Colorado court of appeals decision, which found that VA disability payments are not property and cannot be divided in that way. The U.S. Supreme Court ruled in Howell that garnishing a veteran's VA disability payments to pay Alimony was against the USFSPA.

Another issue related to this subject is how disability benefits are interpreted to determine child maintenance and support. Both the USFSPA and the Supreme Court, prohibit states from claiming disability benefits as income. However, certain states have adopted an alternative approach. Colorado for instance takes all income sources together to determine the amount needed to support a spouse. It then adds disability payments in order to account for their tax-free status.

It is also vital to know the impact divorce has on their disability benefits and how ex-spouses could take advantage of their compensation. By being aware of these issues, veterans can protect their earnings and avoid any unintended consequences.