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How a Veterans Disability Settlement Can Affect a Divorce Case

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

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

Do I have the right to receive compensation for an accident?

If you've been in the military and are now permanently disabled because of injuries or illnesses, you may be eligible for a veteran disability settlement. This settlement can assist in compensating you for medical bills, lost income and other costs that resulted from your injury or sickness. The type of settlement you'll get depends on whether or not your medical condition is service-connected, or not connected, which VA benefits you are eligible for, and how much your injury or accident will cost to treat.

Jim, a 58-year old Vietnam veteran, 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 care and cash dependent on the amount of money he needs. He would like to know how a personal injuries settlement could affect his eligibility to receive this benefit.

The answer is contingent upon whether the settlement is a lump sum or a structured one. Structured settlements consist of installments over time instead of one lump sum payment. The amount that defendant pays is calculated to offset existing VA benefits. A lump sum settlement can affect any existing VA benefits because the VA will annually calculate and consider it to be income. In any event, if extra assets remain after the 12 month period after the settlement is annually recalculated, Jim could be eligible for a new Pension benefit but only if his assets fall below a certain threshold that the VA accepts as establishing financial need.

Do I need to employ an attorney?

Many spouses, members of the military, and former spouses are concerned about VA disability payments and their impact on money issues during divorce. Some people believe, among other things, that the Department of veterans disability law Affairs compensation payments can be split like an army retirement in divorce proceedings or that they're "off limits" when it comes to calculating child support and alimony. These misconceptions could lead to financial mistakes which can have serious consequences.

It is possible to file a claim for disability benefits on your own however, the majority of disabled veterans would require the help of a qualified lawyer. A disability attorney for veterans disability lawyers can examine your medical records in order to collect the evidence necessary to argue your case to the VA. The lawyer will also be able to make any appeals you require to secure the benefits you're entitled to.

Furthermore, the majority of VA disability lawyers charge no fees for consultations. Additionally, the lawyer will generally 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 proportion of retroactive past-due benefits that your lawyer will receive should be outlined in your fee agreement. A fee agreement could stipulate, for example, that the government would provide the attorney with 20% of retroactive benefits. You are responsible for Veterans Disability Settlement any additional amounts.

Can I Garnish My VA Benefits?

When a disabled veteran receives compensation from the VA, it comes in the form of monthly payments. These payments are designed to alleviate some of the effects of disabilities, diseases or injuries incurred during or aggravated during a veteran's military service. Like all income, Veterans Disability Settlement the veterans disability benefits are 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 obligation and pay it directly to a creditor. In the event of a divorce the garnishment could be used for child or spousal maintenance.

However, there are certain situations where disability benefits could be garnished. The most common scenario is veterans who have waived their military retirement in order to receive disability compensation. In these cases the pension portion that is devoted to disability benefits can be garnished to meet family support obligations.

In other situations veterans' benefits could be seized to pay medical expenses or past-due federal student loans. In these instances the court may be able to directly to the VA to obtain the necessary information. The disabled veteran should consult an experienced lawyer to protect their disability benefits. This can prevent them from having to rely on payday lenders or private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a big assistance to veterans disability claim and their families, however they do come with their own set of complications. For example in the event that a veteran gets divorced and receives an VA disability settlement, they should know how this could affect the benefits they receive.

In this regard one of the major issues is whether disability payments are considered to be assets that could be divided in divorce. The issue has been resolved in a variety of ways. One way is by the Colorado court of appeals decision which concluded that VA disability payments are not property and cannot be divided in that way. The U.S. Supreme Court ruled in Howell that garnishing a veteran’s VA disability benefits for Alimony was against the USFSPA.

Another issue that is related to this issue is the treatment of disability benefits for child support and maintenance. The USFSPA and the Supreme Court both forbid states from counting disability payments as income to be used for this purpose. However, some states have adopted an alternative approach. Colorado for instance, takes all income sources together to determine the amount needed to support a spouse. The state then adds disability benefits in order to take into account their tax-free status.

In the end, it is crucial for veterans to know how their disability compensation will be affected if they get divorced and how their ex-spouses may garnish their compensation. By being informed about these issues, veterans can ensure their compensation as well as avoid any unintended consequences.