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How a Veterans Disability Settlement Can Affect a Divorce Case

Jim's client, 58 years old, is permanently disabled due to his service in the military. He is able to receive a monthly pension from the Department of Veterans Affairs.

He would like to know if a verdict of a juror will impact his VA benefits. The answer is that it will not. But it will have an impact on the other sources of income he has.

Can I Get Compensation in the event of an accident?

You could be eligible to receive a settlement if you were a soldier but are now permanently disabled as a result of injuries or illnesses. This settlement can allow you to get compensation for medical expenses, lost wages, and other costs resulting from your illness or injury. The type of settlement you can get will depend on whether the condition is service-connected or not connected, the VA benefits you are eligible for, and how much your injury or accident will cost to treat.

For example, Jim is a 58-year old veteran who was diagnosed with permanent disabilities based on two years of service during the Vietnam War. He hasn't got enough work space to qualify for Social Security disability benefits but there is a VA Pension benefit which provides cash and free medical care that is based on financial need. He wants to understand how a personal injury settlement will affect his ability to get this benefit.

The answer depends on whether the settlement is in the form of one lump sum or a structured settlement. Structured settlements are based on installments over time instead of one single payment. The amount paid by defendant is calculated to offset existing VA benefits. A lump sum settlement can affect any existing VA benefits as the VA will annualize and consider it to be income. If Jim has assets that are not used up after the settlement is annualized then he is eligible to receive the Pension benefit. However the assets he has to be under a limit that the VA has determined to be a financial necessity.

Do I need to employ an attorney?

Many service members, spouses and former spouses are concerned about VA disability benefits and their effect on financial issues during divorce. There are many other reasons, but some people believe that the Department of veterans disability lawyer Affairs' compensation payments are able to be divided like a military pension 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 consequences.

While it is possible to file an initial claim for disability benefits by yourself, the majority of disabled veterans can benefit from the assistance of an experienced attorney. A veteran's disability attorney can review your medical records to gather the evidence required to argue your case before the VA. The lawyer will also be able to file any appeals that you require to obtain the benefits you deserve.

The majority of VA disability lawyers don't charge for consultations. The government will also pay the lawyer directly from the amount of retroactive benefits. This is a benefit of the Equal Access to Justice Act. The amount of retroactive past due benefits that your lawyer will be paid should be clearly outlined in your fee agreement. For instance an agreement on fees could state that the government will pay the lawyer up to 20% of retroactive benefits or award. The attorney is responsible for any additional amounts.

Can I Garnish My VA Benefits?

If a disabled veteran receives compensation from the VA it is in the form of monthly payments. The purpose of the payments is to compensate for the effects of diseases, injuries or disabilities that have been sustained or worsened during the veteran's time of service. Like other income sources, veterans disability legal disability benefits could be subject to garnishment.

Garnishment is a court-ordered procedure that an employer or government agency deduct money from the pay of an individual who owes an amount and then pay it directly to a creditor. In the event of divorce, garnishment could be used to pay for spousal support or child support.

There are situations where the benefits of a veteran can be encashable. Most often, it is the case of a veteran who renounced his retirement from the military in order to receive disability compensation. In these cases the part of pension that is devoted to disability compensation can be garnished to meet family support obligations.

In other circumstances, veteran's benefits could be garnished in order to cover medical expenses or federal student loans that are over due. In these situations the court could go directly to the VA for the information they require. It is essential for disabled veterans disability lawyer to retain a knowledgeable lawyer to ensure that their disability benefits are not being snatched away. This will stop them from having to rely on payday lenders and private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a huge aid to veterans disability lawsuit and their families, Veterans Disability Settlement however they do come with their own set of complications. If a veteran divorces and receives an VA settlement, he or she should be aware of the impact this could have to the benefits they receive.

A major issue in this regard is whether disability payments are considered to be divisible assets in a divorce. The question has been answered in two ways. One way is by an Colorado court of appeals decision that found that VA disability payments are not property and can't be divided as such. The U.S. Supreme Court ruled in Howell, that garnishing a veteran’s VA disability payments for the purpose of alimony was in violation of USFSPA.

Another concern relating to this issue is the treatment of disability benefits to children for maintenance and support. The USFSPA and the Supreme Court both forbid states from counting disability benefits as income to be used for this purpose. Some states have an alternative approach. For instance, Colorado adds up all sources of income to determine how much in support a spouse requires and then pluses up the disability benefits to take into the fact that they are tax-free.

It is also crucial that veterans disability law are aware of how divorce can affect their disability compensation and how their spouses who divorced could take advantage of their compensation. If they are aware of these issues, veterans can ensure the security of their benefits and avoid unintended consequences.