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How a Veterans Disability Settlement Can Affect a Divorce Case

Jim's client, a 58 year old man, is permanently disabled as a result of his military service. He receives a monthly pension from the Department of veterans disability litigation Affairs.

He would like to know how a jury award will affect his VA benefits. It won't. But it will have some impact on his other sources of income.

Can I claim compensation in the event of an accident?

You may be eligible for a settlement in the event that you served in the military but are now permanently disabled because of injuries or illnesses. This settlement will pay you for medical bills, lost income and other expenses that resulted from your injury or sickness. The kind of settlement you could receive will depend on whether your injury or illness is a result of a service connection, the VA benefits you qualify to receive, and the amount to treat your accident or injury.

Jim who is a 58-year veteran of the Vietnam war, was diagnosed as having permanent disabilities because of his two years of service. He does not have enough space for work to be eligible for Social Security Disability benefits, however, he can claim a VA Pension that provides free medical treatment and cash based on his financial need. He would like to determine if a personal accident settlement could 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 settlements that are paid over a time period rather than in a single payment and the amount received by the defendant is calculated to offset any existing VA benefits. A lump sum payment can impact any existing VA benefits as the VA will annually assess and count it income. If Jim has extra assets after the settlement has been annualized then he is eligible to be eligible for the pension benefit. However the assets he has to be below a threshold the VA has agreed establishes financial necessity.

Do I need to hire an attorney?

Many spouses, military personnel and former spouses have concerns about VA disability benefits and their effect on financial issues in divorce. Some people believe, for instance, that the Department of Veterans Affairs compensation payments are split like an army retirement in divorce proceedings or that they're "off limits" when calculating child support and Alimony. These misconceptions may lead to serious financial mistakes.

It is possible to file a claim for disability benefits by yourself however, the majority of disabled veterans disability lawsuit would benefit from the assistance from a competent lawyer. A disability attorney for veterans can review your medical records to gather the evidence needed to prove your case to the VA. The lawyer can also file any appeals that you might need to get the benefits you are entitled to.

Furthermore, the majority of VA disability lawyers don't charge fees for Veterans Disability Settlement consultations. Additionally, the lawyer will generally 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. The fee agreement should clearly define the percentage of retroactive benefits that will be paid to your lawyer. For example, a fee agreement can state that the government will pay the lawyer up to 20% of the retroactive benefits or award. Any additional amounts will be your obligation.

Can I Garnish My VA Benefits?

When disabled veterans receive compensation from the VA the compensation is paid in the form of monthly payments. The funds are meant to alleviate the effects of injuries, diseases or disabilities sustained or aggravated during a veteran's time of service. As with all income, benefits for veterans with disabilities are subject to garnishment.

Garnishment lets a court order that an employer or government agency stop cash from the pay of a person who has an amount and then pay it directly to the creditor. In the event of a divorce garnishment may be used to pay child or spousal maintenance.

There are some situations where a veteran's benefits can be encashable. The most common situation involves the veteran who has waived their military retirement to receive disability compensation. In these scenarios the part of pension that is allocated to disability benefits can be garnished in order to pay for family support obligations.

In other situations, veteran's benefit may be seized to pay medical expenses or federal student loans that are past due. In these situations a court may be able to directly to the VA to obtain the necessary information. It is important for a disabled veteran to hire a knowledgeable attorney to ensure that their disability benefits aren't garnished. This will help them avoid having to rely on payday loans or private loans. lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements are a great help to veterans and their families. However they also come with their own set complications. For example when a veteran is divorced and receives a VA disability settlement, they must be aware of how this will affect their benefits.

In this regard, a major question is whether disability benefits are considered assets that could be divided in divorce. This question has been addressed in two ways. A Colorado court of appeals decision declared that VA disability payments were not property and therefore could not be divided this manner. The U.S. Supreme Court ruled in Howell that garnishing a veteran’s VA disability payments for Alimony was against the USFSPA.

Another concern with this issue is the handling of disability benefits for child maintenance and support. The USFSPA and the Supreme Court both forbid states from counting disability payments as income for these purposes. Certain states use a different approach. Colorado, for example, adds all sources of income together to determine the amount required to provide for a spouse. Colorado then adds on disability payments in order to take into account their tax-free status.

It is also essential that veterans disability litigation know how divorce can affect their disability compensation and how their ex spouses can slash their income. By being aware of these issues, veterans can protect their compensation as well as avoid unintended consequences.