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How a Veterans Disability Settlement Can Affect a Divorce Case

Jim's client, 58 years old, is permanently disabled because of his time in the military. He is able to receive a monthly pension from the Department of Veterans Affairs.

He would like to know if a verdict of a juror will affect his VA benefits. The answer is that it will not. However, it will affect the other sources of income he earns.

Can I claim compensation for an accident?

You may be eligible to receive a settlement if you were a soldier but are now permanently disabled as a result of injuries or illnesses. This settlement can assist in compensating you for medical bills, lost income and other expenses resulting from your injury or sickness. The type of settlement you will receive will depend on whether your injury or illness is service-connected, what VA benefits you qualify for, and Veterans Disability Settlement the amount you will need to treat your accident or injury.

Jim is a 58 year veteran of the Vietnam war was diagnosed with permanent disabilities as a result of his two years of service. He doesn't have enough work quarters to be eligible for Social Security disability benefits but there is a VA Pension benefit that offers medical care and cash that is based on financial need. He would like to determine if a personal accident 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 payments made over a time frame rather than as a single payment and the amount paid by the defendant is calculated to offset any existing VA benefits. A lump sum settlement will affect any existing VA benefits since the VA will annualize and consider it as income. In any event, if extra assets are left after the period of twelve months after the settlement is annually recalculated, Jim could be eligible for a new pension benefit, but only if his assets are below a threshold that the VA agrees establishes financial need.

Do I need to hire an attorney?

Many spouses, military personnel, and former spouses have questions about VA disability benefits and their impact on money issues during a divorce. Some people believe, among other things, that the Department of veterans disability attorney Affairs compensation payments can be split like an army retirement in divorce cases or that they're "off limits" in calculating child support and alimony. These misconceptions can lead to financial errors that can have grave consequences.

While it is possible to do an initial claim for disability benefits by yourself, the majority of disabled veterans get the help of a qualified lawyer. A veteran's disability lawyer can examine your medical records to gather the evidence required to make a strong argument before the VA. The lawyer can also help to file any appeals that you require to receive the benefits you are entitled to.

Most VA disability lawyers do not charge 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 fee agreement should specify clearly the percentage of retroactive benefits to be paid to your lawyer. For instance your fee agreement may specify that the government will pay the lawyer up to 20% of retroactive benefits or give. Any additional amounts will be your responsibility.

Can I Garnish My VA Benefits?

When disabled veterans receive compensation from the VA it is in the form of monthly payments. The payments are intended to alleviate the effects of diseases, injuries or disabilities that were suffered or aggravated during the course of a veteran's time of service. The benefits for veterans with disabilities are subject to garnishment, just like any other income.

Garnishment allows a court order that an employer or government agency deduct money from the wages of a person who has an amount and then pay it directly to the creditor. In the event of divorce, garnishment can be used to pay for spousal support or child support.

However, there are some situations where disability benefits could be garnished. Most common is the veteran who renounced his military retirement to receive disability compensation. In these cases, the amount of pension that is allocated to disability pay can be garnished to pay family support obligations.

In other instances veterans disability case' benefits could be withdrawn to cover medical expenses or past-due federal student loans. In these cases a judge can refer a case directly to the VA for the information they require. A disabled veteran should employ an experienced attorney to safeguard their disability benefits. This will prevent them from having to depend on payday loans or private loans. lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be an enormous help for veterans disability law and their families, however they come with their own set of complications. For example, if a veteran gets divorced and is awarded a VA disability settlement, they should be aware of what effect this will have on the benefits they receive.

A major issue in this regard is whether or not disability payments count as divisible assets in divorce. This issue has been settled in a couple of ways. A Colorado court of appeals decision decided that VA disability payments were not property and could not be divided in this manner. The U.S. Supreme Court ruled in Howell that garnishing a veteran’s VA disability payments for an alimony payment was a violation of USFSPA.

Another concern with this issue is the treatment of disability benefits to children for support and maintenance. Both the USFSPA as well as the Supreme Court, prohibit states from utilizing disability benefits as income. However, certain states have adopted a different approach. For instance, Colorado adds up all sources of income to determine how much in support a spouse needs and then adds up the disability payments to take into the fact that they are tax-free.

It is also vital that veterans disability attorney know how divorce can affect their disability benefits and how their spouses who divorced can slash their income. By being informed about these issues, vets can safeguard their benefits and avoid the unintended consequences.