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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 service in the military. He receives a monthly Pension benefit from the Department of veterans disability settlement Affairs.

He would like to be aware of whether a verdict by a jury will impact his VA benefits. The answer is not. However, it will have an impact on the other sources of income he has.

Can I Get Compensation for an Accident?

If you have served in the military but are now permanently disabled due to injuries or illnesses, you could be eligible for a veterans disability settlement. This settlement will help pay you for medical expenses, lost income and other expenses resulting from your illness or injury. The kind of settlement you are eligible for will depend on whether your injury or illness is related to service, what VA benefits you are eligible for, and the cost to treat your injury or accident.

For instance, Jim is a 58-year veteran who was diagnosed with permanent disabilities from two years of service during the Vietnam War. He isn't in a position to have enough space for work to be eligible for Social Security Disability benefits, but he has a VA Pension that provides free medical treatment and cash depending on the financial needs of his. He wants to learn how a personal injury lawsuit can affect his ability to be eligible for this benefit.

The answer is dependent on whether the settlement is a lump sum or a structured one. Structured settlements are payments made over a long period of time rather than a single payment and the amount received by the defendant is calculated to offset any existing VA benefits. A lump sum settlement will impact any existing VA benefits since the VA will annually evaluate and consider it to be income. In the event that there are any excess assets are left after the twelve month period when the settlement has been annualized Jim may be eligible to apply again for the pension benefit, but only if his assets are lower than a threshold with which the VA accepts as establishing financial need.

Do I require an Attorney?

Many spouses, service members and former spouses are confused about VA disability compensation and its impact on money issues in divorce cases. There are many other reasons, but some people think that the Department of Veterans Affairs' compensation payments can be divided like a pension from a military service in divorce or are "off limits" in the calculation of child support and alimony. These misconceptions can lead to serious financial mistakes.

While it is possible to do an initial claim for disability benefits on your own, many disabled veterans get the help of a qualified lawyer. A veteran's disability lawyer can look over your medical records and collect the evidence necessary to make a strong case before the VA. The lawyer can also file any appeals you might need to receive the benefits you deserve.

Most VA disability lawyers do not charge for consultations. The government will also pay the lawyer directly from the benefit of retroactive benefits. This is an advantage of the Equal Access to Justice Act. The proportion of retroactive past-due benefits your lawyer will be paid must be specified in your fee agreement. A fee agreement could state that, for instance, the government will give the attorney up to 20% of retroactive benefits. You are responsible for any additional sums.

Can I Garnish My VA Benefits?

The VA pays monthly compensation to disabled veterans. The purpose of the payments is to offset the effects of diseases, injuries or disabilities that were sustained or worsened during the veteran's service. The benefits for veterans disability litigation' disability are subject to garnishment just like any other income.

Garnishment lets a court order that an employer or government agency stop money from the pay of a person who is in the process of paying the debt and pay it directly to the creditor. In the event of divorce, garnishment can be used for child or spousal maintenance.

There are situations where a veteran's benefits can be repaid. Most common is the veteran who has renounced his military retirement in order to receive disability compensation. In these instances the amount of pension that is attributed to disability benefits can be garnished for family support obligations.

In other cases the benefits of a veteran can be seized to pay medical expenses or past-due federal student loans. In these situations the court might be able to the VA to get the required information. The disabled veteran should consult an experienced attorney to protect their disability benefits. This can prevent them from relying on payday lenders and 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 complications. For example, if a veteran gets divorced and receives a VA disability settlement, they should be aware of how this will affect their benefits.

One of the major issues in this context is whether disability payments are considered to be divisible assets in divorce. This issue has been addressed in a couple of ways. One way is by the Colorado court of appeals ruling that concluded that VA disability payments are not property and therefore cannot be divided as such. Another way is through the U.S. Supreme Court ruling in Howell that ruled that garnishing the veteran's VA disability benefits to pay for Alimony is against the Uniformed Services Former Spouses Protection Act (USFSPA).

Another concern relating to this topic is the treatment of disability benefits to children for maintenance and support. Both the USFSPA and the Supreme Court, prohibit states from utilizing disability benefits as income. However, certain states have taken a different approach. For instance, Veterans Disability Settlement Colorado adds up all sources of income to determine the amount in support a spouse will need and then adds up the disability benefits to take into account that they are tax-free.

Finally, it is important for veterans to know how their disability compensation will be affected if they are divorced and how their spouses who divorced them can be able to garnish their compensation. By knowing about these issues, veterans disability case can safeguard their benefits and avoid unintended consequences.