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How a Veterans Disability Settlement Can Affect a Divorce Case

Jim's 58-year-old client is permanently disabled as a result of his service in the military. He receives a monthly pension benefit from the Department of Veterans Affairs.

He would like to find out if a verdict from a jury will impact his VA benefits. The answer is not. It will, however, have an impact on the other sources of income he earns.

Can I receive compensation for an accident?

If you've been in the military and are permanently disabled because of injuries or illnesses, you could be eligible for a veteran disability settlement. This settlement can assist in compensating you for medical expenses, lost income and other expenses resulting from your illness or injury. The type of settlement you are eligible for veterans disability settlement will depend on whether or not your injury or illness is a result of a service connection, the VA benefits you qualify for, and the amount you will need to treat your injury or accident.

For example, Jim is a 58-year veteran who was diagnosed with permanent disabilities following two years of service during the Vietnam War. He doesn't have enough work quarters to be eligible for Social Security disability benefits but there is a VA Pension benefit, which offers medical care and cash that is based on financial need. He would like to learn how a personal injury lawsuit can affect his ability to get this benefit.

The answer is dependent on whether the settlement is a lump-sum or a structured one. Structured settlements are payments made over a long period of time rather than in a single payment, and the amount paid by the defendant is used to offset any existing VA benefits. A lump sum settlement will impact any existing VA benefits because the VA will annually evaluate and consider it as income. In any case, if there are excess assets remain after the twelve-month period when the settlement is annualized, Jim could be eligible for a new pension benefit, but only if his assets fall less than a minimum threshold that the VA accepts as establishing financial need.

Do I need to hire an attorney?

Many spouses, service members and former spouses are confused about VA disability compensation and its impact on money issues in divorce cases. Among other things, some people believe that the Department of Veterans Affairs' compensation payments are able to be divided as a military pension in a divorce or that they are "off limits" when it comes to calculation of child support and Alimony. These misconceptions could lead to financial mistakes which can have serious consequences.

While it is possible to submit an initial claim for disability benefits on your own, the majority of disabled veterans disability case benefit from the assistance of an experienced lawyer. A qualified veteran's disability lawyer will review your medical documents and gather the required evidence to make a convincing case to the VA. The lawyer can also file any appeals that you might require to get the benefits you deserve.

In addition, the majority of VA disability lawyers do not charge fees for consultations. Additionally the lawyer will usually be paid by the government directly out of your retroactive past due benefits. This is an advantage 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. A fee agreement could say for instance that the government will provide the attorney with 20 percent of retroactive benefits. Any additional amount is your obligation.

Can I Garnish My VA Benefits?

The VA pays monthly compensation to disabled veterans disability legal. The funds are meant to compensate for the effects of injuries, diseases or disabilities that were suffered or aggravated during a veteran's service. Like all incomes, benefits for veterans with disabilities are subject to garnishment.

Garnishment lets a court order that an employer or government agency withhold funds from the paycheck of an individual who owes an amount and then pay it directly to a creditor. In the event of a divorce the garnishment could be used for child or spousal care.

There are a few situations where disability benefits are able to be garnished. Most common is the veteran who has renounced his military retirement to receive disability compensation. In these cases the portion of the pension that is attributed to disability benefits can be garnished to pay family support obligations.

In other instances, a veteran's benefit may be garnished to pay medical bills or federal student loans that are over due. In these situations a judge can refer a case directly to the VA to obtain the information they need. It is important for disabled veterans disability lawyers to work with a reputable lawyer to ensure that their disability benefits aren't removed. This will prevent them from relying on payday lenders or private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a huge help for veterans disability attorney and their families, but they come with their own set of issues. For example, if a veteran gets divorced and receives an VA disability settlement, they should be aware of how this will affect their benefits.

In this regard, the main question is whether disability benefits are considered assets which can be divided in divorce. The issue has been resolved in a variety of ways. A Colorado court of appeals ruling decided that VA disability payments were not property and could not be divided in this way. The U.S. Supreme Court ruled in Howell, that garnishing a veteran's VA disability payments to pay the purpose of alimony was in violation of USFSPA.

Another concern related to this subject is how disability benefits are treated in the context of child maintenance and support. Both the USFSPA, and the Supreme Court, prohibit states from counting disability benefits as income. Certain states take different methods. For instance, Colorado adds up all sources of income to determine how much in support a spouse will need and then adds the disability payments to take the fact that they are tax-free.

It is also important for veterans disability compensation to understand how their disability benefits will be affected if they become divorced and how their spouses who divorced them can be able to garnish their compensation. By being knowledgeable about these issues, veterans can protect their compensation and avoid unintended consequences.