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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 due to his military service. He receives a monthly pension from the Department of Veterans Affairs.

He would like to know how an award from a jury will affect his VA benefits. It won't. However, it could have an impact on his other sources of income.

Can I get compensation for an accident?

You could be eligible for a settlement if you have served in the military, but are now permanently disabled because of injuries or illnesses. This settlement will pay you for medical expenses, lost income and other costs that resulted from your illness or injury. The type of settlement you'll be able to receive will depend on whether your condition is service-connected or Veterans Disability Settlement not connected, which VA benefits you are eligible for, as well as the amount your accident or injury will cost to treat.

Jim, a 58 year veteran of the Vietnam war was diagnosed with permanent disabilities because of his two years of service. He does not have enough space for work to qualify for Social Security Disability benefits, but he has an VA Pension that offers free medical care and cash dependent on the amount of money he needs. He wants to find out if a personal injury settlement would affect his ability receive this benefit.

The answer depends on if the settlement is a lump sum or a structured one. Structured settlements are settlements that are paid over a time frame rather than as a single payment and the amount received by the defendant is used to offset any existing VA benefits. A lump sum payment will affect any existing VA benefits as the VA will annually calculate and consider it to be income. If Jim has extra assets after the settlement has been annualized the applicant can apply again to receive the Pension benefit. However his assets must be below a minimum threshold that the VA has determined to be a financial necessity.

Do I require an Attorney?

Many spouses, members of the military and former spouses have concerns about VA disability benefits and their effect on financial issues during divorce. Some people believe, among other things that the Department of Veterans Affairs compensation payments can be split as a military retirement in a divorce case or that they're "off limits" when calculating child support and Alimony. These misconceptions could lead to serious financial errors.

It is possible to file a claim for disability benefits yourself However, most disabled veterans would benefit from the assistance from a competent lawyer. A disability attorney for veterans can examine your medical records in order to gather the necessary evidence to present a convincing case to the VA. The lawyer can also file any appeals that you may require to get the benefits you deserve.

Moreover, most VA disability lawyers do not charge fees 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 percentage of retroactive past-due benefits that your lawyer will be paid should be clearly stated in your fee agreement. For instance your fee agreement may stipulate that the government will pay the lawyer up to 20% of the retroactive benefits or pay. You will be accountable for any additional sums.

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 intended to offset the effects of injuries, diseases or disabilities that have been sustained or worsened during the veteran's service. As with all income, veterans disability settlement disability benefits are subject to garnishment.

Garnishment can be a legal proceeding that allows a judge to order an employer or government agency to withhold funds from the pay of someone who is in debt and to send them directly to an individual creditor. In the event of a divorce, garnishment can be used to pay for spousal support or Veterans Disability Settlement child support.

There are some situations where the benefits of a veteran could be encashable. The most frequent is the veteran who has waived his military retirement in order to receive disability compensation. In these instances the amount of pension that is allocated to disability pay can be garnished to pay family support obligations.

In other cases, a veteran's benefit may be garnished in order to cover medical expenses or federal student loans that are past due. In these instances, a court can go directly to the VA for the information they require. The disabled veteran should consult an experienced attorney to protect their disability benefits. This can help them avoid having to rely on private loans and payday lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements are an excellent help to veterans as well as their families. However they have certain complications. If a veteran divorces and receives a VA settlement then they must be aware of the impact this could have to the benefits they receive.

In this context, a major question is whether or not disability payments are considered assets that can be split during a divorce. This issue has been addressed in a couple of ways. One is through a Colorado court of appeals decision which concluded that VA disability payments are not property and can't be divided in this way. The U.S. Supreme Court ruled in Howell, that garnishing a veteran’s VA disability payments for alimony was a violation of USFSPA.

Another concern that is related to this topic is how the disability benefits are interpreted to determine child maintenance and support. The USFSPA and the Supreme Court both forbid states from counting disability payments as income for these purposes. However, certain states have taken a different approach. For instance, Colorado adds up all sources of income to determine the amount in support a spouse needs and then pluses up the disability payments to take into account that they are tax-free.

Additionally, it is essential for veterans disability attorney to be aware of how their disability benefits will be affected if they are divorced and how their ex-spouses can affect their compensation. If they are aware of these issues, veterans disability lawyer can ensure the security of their earnings and avoid any unwanted consequences.