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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 time in the military. He receives a monthly Pension benefit from the Department of Veterans Affairs.

He wants to know how an award from a jury will impact his VA benefits. The answer is not. However, it could have an impact on the other sources of income he has.

Can I receive compensation for an accident?

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

For example, Jim is a 58-year old veteran who was diagnosed with permanent disabilities from two years of service in the Vietnam War. Jim does not have enough work space to qualify for Social Security Disability benefits, however, he is able to claim the VA Pension which offers free medical treatment and cash dependent on the amount of money he needs. He wants to learn how a personal injury settlement can affect his ability to receive this benefit.

The answer will depend on whether the settlement is a lump sum or a structured one. Structured settlements involve installments over time instead of one payment. The amount paid by the defendant is calculated to offset the existing VA benefits. In contrast, a lump sum payout will likely impact any benefits already in place because the VA considers it as income and will increase it. In either case, if excess assets are left after the twelve month period when the settlement is annualized, Jim could reapply for the Pension benefit, but only if his assets fall below a certain threshold that the VA agrees establishes financial need.

Do I require an attorney?

Many spouses, service members and former spouses are confused about VA disability compensation and its effect on financial issues in divorce cases. Some people believe, among other things that the Department of Veterans Affairs compensation payments can be divided like a military retirement in divorce cases or that they're "off limits" in calculating child support and Alimony. These misconceptions may lead to grave financial errors.

It is possible to file an application for disability benefits yourself, but most disabled veterans disability case would require the help of a skilled lawyer. A disability attorney for veterans disability litigation can review your medical records to gather the necessary evidence to present a convincing argument before the VA. The lawyer will also be able to file any appeals you may require to receive the benefits you're entitled.

In addition, the majority of VA disability lawyers don't charge fees for consultations. The government also pays the lawyer directly from your award of retroactive benefits. This is an advantage of the Equal Access to Justice Act. The amount of retroactive past-due benefits your lawyer will receive should be outlined in your fee agreement. For example an agreement on fees could provide that the government can pay the lawyer up to 20% of the retroactive benefits or give. You are responsible for any additional amounts.

Can I Garnish My VA Benefits?

The VA offers monthly payments to disabled veterans disability law. The payments are meant to offset some of the effects of disabilities, diseases or injuries incurred during or aggravated due to a veteran's military service. The veterans disability benefits are subject to garnishment just like any other income.

Garnishment can be a legal proceeding which allows a court make an order to an employer or government agency to omit funds from the wages of a person who owes money and transfer them directly to a creditor. In the event of divorce, the garnishment could be used for child or spousal maintenance.

However, there are a few circumstances where a veteran's disability benefits could be garnished. The most common scenario involves the veteran who has waived their military retirement in order to claim disability compensation. In these instances the pension portion that is devoted to disability compensation can be garnished to fulfill the family support obligations.

In other cases, a veteran's benefit may be seized in order to pay medical expenses or federal student loans that are over due. In these instances a judge can refer a case directly to the VA to obtain the information they need. It is vital for a disabled veteran to retain a knowledgeable attorney to ensure that their disability benefits aren't removed. This will stop 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 major benefit for veterans and their families, but they come with their own set of complications. If a veteran is divorced and receives an VA settlement, he or she should be aware of the implications to the benefits they receive.

In this context, the main question is whether or not disability payments are considered to be assets that could be divided during a divorce. This question has been resolved in two ways. One option is a Colorado court of appeals decision, which found that VA disability payments are not property and can't be divided in this way. The other way is by an U.S. Supreme Court ruling in Howell which ruled that garnishing a veteran's VA disability benefits to pay for an alimony payment is a violation of the Uniformed Services Former Spouses Protection Act (USFSPA).

Another concern relating to this issue is the treatment of disability benefits for child maintenance and support. The USFSPA and the Supreme Court both forbid states from counting disability benefits as income for these purposes. However, certain states have taken a different approach. Colorado for instance, adds all income sources together to determine the amount needed to support a spouse. It then adds on disability payments to reflect their tax-free status.

In the end, it is crucial for veterans disability compensation to understand how their disability benefits will be affected if they become divorced and how their ex-spouses can be able to garnish their compensation. By knowing about these issues, veterans disability settlement can ensure the security of their benefits and avoid unwanted consequences.