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How a Veterans Disability Settlement Can Affect a Divorce Case

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

He would like to find out if a verdict from a jury will impact his VA benefits. It will not. However, it could have an impact on the other sources of income he has.

Can I get compensation for an accident?

You may be eligible for a settlement if you have served in the military, but are now permanently disabled as a result of injuries or illnesses. This settlement can assist in compensating you for medical expenses, lost income and other expenses that resulted from your injury or sickness. The type of settlement that you could receive will depend on whether your illness or injury is related to service, what VA benefits you qualify to receive, and the amount to treat your injury or accident.

For example, Jim is a 58-year old veteran who was diagnosed with permanent disabilities from two years of service during the Vietnam War. He doesn't have enough space for work to be eligible for Social Security Disability benefits, however, he does have the VA Pension which offers cash and medical care for free according to his financial need. He wants to be aware of how a personal injury settlement can affect his ability to get 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 time period rather than in a single payment and the amount received by the defendant is calculated to offset any existing VA benefits. In contrast, a lump sum payment will likely impact any benefits already in place because the VA considers it a tax-deductible income and will annually increase it. If Jim has surplus assets after the settlement is annualized, he can reapply to be eligible for the pension benefit. However, his assets must be under a limit that the VA has determined to be a financial necessity.

Do I have to hire an attorney?

Many spouses, service members and former spouses are confused about VA disability compensation and the impact it has on the financial aspects of a divorce case. Among other things, some people believe that the Department of Veterans Affairs' compensation payments can be divided like a pension from a military service in a divorce or that they are "off limits" in the calculation of child support and Alimony. These misconceptions can result in financial mistakes which can have serious consequences.

It is possible to submit a claim for disability benefits on your own However, most disabled veterans would require the help of a skilled lawyer. A veteran's disability lawyer can look over your medical records and gather the evidence required to argue your case before the VA. The lawyer can also help to file any appeals that you need to get the benefits you're entitled to.

In addition, the majority of VA disability lawyers charge no fees for consultations. The government also pays the lawyer directly from the payment of retroactive benefits. This is a benefit of the Equal Access to Justice Act. Your fee agreement should clearly state the percentage of retroactive benefits to be paid to your lawyer. For example, a fee agreement can state that the government will pay the lawyer up to 20% of retroactive benefits or pay. Any additional amount is your responsibility.

Can I Garnish My VA Benefits?

The VA pays monthly compensation to disabled veterans disability lawsuit. These payments are designed to offset some of the effects of diseases, disabilities or veterans disability lawyer injuries that are sustained or aggravated by the veteran's military service. The benefits for veterans disability attorneys with disabilities are subject to garnishment like any other income.

Garnishment lets a court order that an employer or government agency withhold funds from the paycheck of an individual who owes a debt and send it directly to the creditor. In the event of a divorce, garnishment may be used to pay spousal or child support or child support.

There are a few situations in which a veteran's disability benefits could be garnished. The most common scenario is the veteran who has waived their military retirement to get disability compensation. In these situations the amount of pension allocated to disability payments could be garnished to meet family support obligations.

In other cases veterans disability lawyer (click the next page)' benefits could be garnished to pay for medical expenses or past-due federal student loans. In these instances, a court may be able to directly to the VA to obtain the necessary information. A disabled veteran should employ an experienced lawyer to protect their disability benefits. 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 are a tremendous help to veterans as well as their families. However, they come with their own set of complications. For example when a veteran is divorced and is awarded a VA disability settlement, they should be aware of how this will affect their benefits.

A major issue in this regard is whether or not disability payments are considered to be divisible assets in a divorce. This issue has been settled in a variety of ways. A Colorado court of appeals decision declared that VA disability payments were not property and therefore could not be divided this manner. The other way is by a U.S. Supreme Court ruling in Howell which held that garnishing a veteran's VA disability benefits to pay Alimony is against the Uniformed Services Former Spouses Protection Act (USFSPA).

Another concern related to this issue is how disability benefits are interpreted for purposes of child support and maintenance. The USFSPA and the Supreme Court both forbid states from counting disability benefits as income for these purposes. However, certain states have adopted different approaches. For instance, Colorado adds up all sources of income to determine how much in support a spouse requires and then adds up the disability benefits to take into account that they are tax free.

It is also crucial that veterans disability lawsuit are aware of how divorce affects their disability benefits and how ex-spouses could slash their benefits. By being knowledgeable about these questions, veterans can guard their earnings and avoid any unintended consequences.