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How a Veterans Disability Settlement Can Affect a Divorce Case

Jim's client, Veterans Disability Settlement 58 years old, is permanently disabled as a result of his service in the military. He receives a monthly pension from the Department of veterans disability claim Affairs.

He wants to know how a jury award will affect his VA benefits. It won't. However, it will have an impact on the other sources of income he earns.

Can I receive compensation in the event of an accident?

You may be eligible for a settlement if have 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 you'll get depends on whether or not your condition is service-connected or non-service connected, which VA benefits you qualify for, and the amount your accident or injury will cost to treat.

Jim is a 58 year old Vietnam veteran was diagnosed with permanent disabilities as a result of his two years of service. He hasn't got enough work space to be eligible for Social Security disability benefits but the VA Pension benefit that offers cash and free medical assistance dependent on financial need. He would like to know if a personal injury settlement will affect his ability to get this benefit.

The answer will depend on whether the settlement is a lump-sum or a structured one. Structured settlements are the ones that are paid over a period of time rather than as a single payment, and the amount paid by the defendant is used to offset any existing VA benefits. In contrast, a lump sum payout is likely to affect any existing benefits because the VA considers it a tax-deductible income and will annually increase it. In any event, if extra assets remain after the 12 month period when the settlement is annualized, Jim may be eligible to apply again for the Pension benefit, but only if his assets are less than a minimum threshold that the VA accepts as establishing financial need.

Do I have to hire an attorney?

Many service members, spouses and former spouses have concerns about VA disability benefits and their impact on money issues during a divorce. Some people believe, among other things, that the Department of veterans disability lawsuit Affairs compensation payments can be split like military retirements in divorce proceedings or that they're "off limits" when it comes to calculating child support and alimony. These misconceptions could lead grave financial errors.

It is possible to file a claim for disability benefits by yourself however, the majority of disabled veterans disability attorneys will require the help of a qualified lawyer. A qualified 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 that you might require to receive the benefits you deserve.

The majority of VA disability lawyers do not charge for consultations. In addition that the lawyer will normally be paid by the government directly out of your retroactive past-due benefits. This is one of the benefits of the Equal Access to Justice Act. Your fee agreement should specify clearly the amount of retroactive benefits to be paid to your lawyer. A fee agreement could state, for example, that the government would provide the attorney with 20 percent of retroactive benefits. Any additional amounts are your responsibility.

Can I Garnish My VA Benefits?

When a disabled veteran receives compensation from the VA it is received in the form of monthly payments. The funds are meant to compensate for the effects of injuries, diseases or disabilities that have been sustained or worsened during the veteran's service. Like all incomes, veterans disability benefits can be subject to garnishment.

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

There are situations where veterans' benefits could be garnished. The most common scenario involves a veteran who waived their military retirement to get disability compensation. In these cases the portion of the pension allocated to disability payments can be garnished to pay family support obligations.

In other cases, a veteran's benefits could be garnished in order to pay medical bills or federal student loans that are past due. In these situations the court could go directly to the VA for the information they require. It is vital for a disabled veteran to find a competent attorney to ensure that their disability benefits are not removed. This will help them avoid having to rely on payday and private loan lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements are an excellent aid to veterans disability compensation and their families. However they have certain complications. If a veteran divorces and receives a VA settlement it is important to be aware of the impact this could have to their benefits.

In this regard the most important question is whether disability payments are considered assets which can be divided in divorce. This question has been resolved in a variety of ways. A Colorado court of appeals decision determined that VA disability payments were not property and therefore could not be divided in this way. Another option is a U.S. Supreme Court ruling in Howell which ruled that garnishing the veteran's VA disability payments to pay Alimony is against the Uniformed Services Former Spouses Protection Act (USFSPA).

Another issue that is related to this issue is the handling of disability benefits for child support and maintenance. The USFSPA and the Supreme Court both forbid states from claiming disability benefits as income to be used for this purpose. However, certain states have chosen to take an alternative approach. Colorado is one example. It takes all income sources together to determine the amount needed to provide for a spouse. Colorado then adds on disability payments in order to account for their tax-free status.

It is also important that veterans are aware of how divorce can affect their disability benefits and how their ex spouses can garnish their compensation. By knowing about these issues, veterans disability attorney can ensure the security of their income and avoid unintended consequences.