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How a veterans disability compensation Disability Settlement Can Affect a Divorce Case

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

He wants to know if an award from a jury will impact his VA benefits. It won't. It will, however, affect the income sources of his other income sources.

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 veterans disability settlement. This settlement can help compensate you for medical expenses, lost income and other expenses that resulted from your injury or sickness. The type of settlement that you can receive will depend on whether your illness or injury is service-connected, what VA benefits you are eligible for, and the amount you will need to treat your accident or injury.

Jim, a 58 year veteran of Vietnam was diagnosed with permanent disabilities due to his two years of service. He does not have enough space for work to qualify for Social Security Disability benefits, however, he does have the VA Pension which offers free medical treatment and cash based on his financial need. He would like to be aware of how a personal injuries settlement can affect his ability to benefit from 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 long period of time rather than a single payment and the amount paid by the defendant is calculated to offset any existing VA benefits. A lump sum payment can affect any existing VA benefits since the VA will annualize and consider it income. If Jim has extra assets after the settlement is annually adjusted then he is eligible to receive the Pension benefit. However the assets he has to be below a minimum threshold that the VA has agreed establishes financial necessity.

Do I Need to Hire an attorney?

Many spouses, service members and Veterans Disability Settlement former spouses have concerns about VA disability payments and their effect on financial issues during a divorce. In addition, 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" in the calculation of child support and alimony. These misconceptions could lead grave financial errors.

While it is possible to make an initial claim for disability benefits by yourself, the majority of disabled veterans benefit from the assistance of an experienced lawyer. A veteran's disability lawyer can examine your medical records in order to gather the necessary evidence to present a convincing case before the VA. The lawyer can also file any appeals you might require to receive the benefits you deserve.

Furthermore, the majority of VA disability lawyers don't charge fees for consultations. In addition the lawyer will typically be paid by the government directly from your retroactive past-due benefits. This is an advantage of the Equal Access to Justice Act. Your fee agreement should clearly specify the amount of retroactive benefits to be paid to your lawyer. A fee agreement may stipulate for instance that the government will provide the attorney with 20 percent of retroactive benefits. You will be responsible for any additional costs.

Can I Garnish My VA Benefits?

When disabled veterans receive compensation from the VA it is in the form of monthly payments. These payments are designed to help offset the impact of illnesses, injuries or disabilities that have been sustained or aggravated during the course of a veteran's service. Like all incomes, veterans disability compensation disability benefits can be subject to garnishment.

Garnishment is a legal action that permits a court to decide that an employer or a government agency to deduct funds from the paycheck of a person who owes money and send them directly to the creditor. In the case of a divorce, garnishment could be used to pay for spousal support or child support.

However, there are some situations in which a veteran's disability benefits are able to be repaid. The most common scenario is the veteran who has waived their military retirement in order to claim disability compensation. In these instances, the portion of pension that is allocated to disability compensation can be garnished in order to pay for family support obligations.

In other cases, a veteran's benefits may also be garnished to pay medical bills or federal student loans that are past due. In these situations the court can go directly to the VA to obtain the information they require. The disabled veteran should consult an experienced lawyer to protect their disability benefits. This will allow them to avoid being forced to rely on private loans and payday lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be an enormous benefit for veterans disability lawyer and their families, but they don't come without their own set of complications. For instance the case where a veteran is divorced and is awarded a VA disability settlement, they must be aware of how this could affect their benefits.

One of the major issues in this context is whether or not disability payments are considered divisible assets in a divorce. This question has been answered in two ways. One way is by a Colorado court of appeals decision which concluded that VA disability payments are not property and cannot be divided as such. The U.S. Supreme Court ruled in Howell, that garnishing a veteran's VA disability benefits for an alimony payment was a violation of USFSPA.

Another concern with this issue is how disability benefits are treated to determine child support and maintenance. The USFSPA and the Supreme Court both forbid states from claiming disability benefits as income to be used for this purpose. However, some states have taken different approaches. Colorado for instance, takes all income sources together to determine the amount required to provide for a spouse. Colorado then adds disability payments in order to take into account their tax-free status.

It is also essential that veterans are aware of how divorce can affect their disability compensation and how their spouses who divorced could slash their benefits. By being informed about these issues, vets can protect their compensation and avoid the unintended consequences.