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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 because of his military service. He receives a monthly Pension benefit from the Department of Veterans Affairs.

He wants to find out if a verdict from a jury will affect his VA benefits. The answer is that it will not. It will, however, have an impact on his other sources of income.

Can I Receive Compensation for an Accident?

You may be eligible for a settlement if served in the military but are now permanently disabled as a result of injuries or illnesses. This settlement could help you get compensation for medical expenses, lost wages, and other costs resulting from your injury or illness. The kind of settlement you'll be able to receive depends on whether 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 is a 58 year old Vietnam veteran, was diagnosed as having permanent disabilities because of his two years of service. He doesn't have enough work space to be eligible for Social Security Disability benefits, however, he is able to claim an VA Pension that offers cash and medical treatment for free dependent on the amount of money he needs. He would like to find out if a personal injury settlement will affect his ability to get this benefit.

The answer is dependent on whether the settlement is a lump sum or a structured one. Structured settlements consist of payments over a period of time, rather than one lump sum payment. The amount that defendant pays is calculated to offset the existing VA benefits. A lump sum settlement will affect any existing VA benefits since the VA will annually assess and count it as income. In the event that there are any excess assets are left over after the period of twelve months when the settlement is annualized, Jim could apply again for the Pension benefit, but only if his assets fall lower than a threshold with which the VA is able to agree establishes financial need.

Do I need to employ an attorney?

Many spouses, military personnel, and former spouses are confused about VA disability compensation and the impact it has on money issues in a divorce case. Some people think, for instance, that Department of Veterans Affairs compensation payments are split like a military retirement in a divorce case or that they're "off limits" when it comes to calculating child support and Alimony. These misconceptions can lead to financial mistakes that have serious consequences.

While it is possible to file an initial claim for disability benefits on your own, most disabled veterans get the help of a qualified lawyer. A veteran's disability lawyer who is experienced can review your medical records and gather all the necessary evidence to make a convincing case to the VA. The lawyer can also help to file any appeals you may need to get the benefits you are entitled to.

Moreover, most VA disability lawyers charge no fees for consultations. The government also pays the lawyer directly from the award of retroactive benefits. This is a benefit of the Equal Access to Justice Act. The amount of retroactive past due benefits your lawyer will be paid should be outlined in your fee agreement. A fee agreement could stipulate that, for instance, the government would pay the attorney 20 percent of retroactive benefits. You will be accountable for any additional amount.

Can I Garnish My VA Benefits?

The VA pays a monthly amount of compensation to disabled veterans disability lawyers. The funds are meant to help offset the impact of injuries, diseases or disabilities that were sustained or worsened during the veteran's time of service. Like all incomes, benefits for veterans with disabilities are subject to garnishment.

Garnishment is a court-ordered procedure that an employer or government agency withhold money from the wages of a person who has a debt and send it directly to a creditor. In the event of divorce, garnishment may be used to pay child or spousal maintenance.

There are some situations where a veteran's benefits can be encashable. The most frequent scenario involves veterans disability attorneys who have waived their military retirement to get disability compensation. In these cases the amount of pension that is devoted to disability payments can be garnished in order to fulfill the family support obligations.

In other situations the benefits of a veteran can be garnished to pay for medical expenses or past-due federal student loans. In these instances the court could go directly to the VA for the information they need. A disabled veteran should seek out an experienced attorney to secure their disability benefits. This will prevent them from being forced to rely on payday loans and private loans. lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a huge aid to veterans disability lawyer and their families, however they come with their own set of complications. For example the case where a veteran is divorced and is awarded a VA disability settlement, they need to know what effect this will have on the benefits they receive.

A major issue in this context is whether disability benefits are considered divisible assets in divorce. This question has been resolved in two ways. A Colorado court of appeals decision found that VA disability payments were not property and could not be divided in this way. The other way is by a U.S. Supreme Court ruling in Howell that ruled that garnishing the veteran's VA disability benefits to pay the payment of alimony is in violation of the Uniformed Services Former Spouses Protection Act (USFSPA).

Another concern with this issue is the handling of disability benefits to children for maintenance and support. Both the USFSPA as well as the Supreme Court, prohibit states from counting disability benefits as income. Certain states employ an alternative approach. For instance, Colorado adds up all sources of income to determine how much in support a spouse will need and then adds the disability payments to take into account that they are tax-free.

It is also important to know how divorce will affect their disability compensation and how ex-spouses could slash their benefits. By being aware of these issues, vets can protect their income and Veterans Disability Settlement avoid unintended consequences.