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

He would like to know how the verdict of a jury will affect his VA benefits. It won't. However, it will have an impact on his other sources of income.

Do I have the right to receive compensation in the event of an accident?

You could be eligible to receive a settlement if you were in the military but are now permanently disabled because of injuries or illnesses. This settlement will allow you to get compensation for medical bills, lost wages and other expenses related to your illness or injury. The type of settlement you could receive will depend on whether your illness or injury is service-related, what VA benefits you are eligible for, and the cost to treat your injury or accident.

Jim is a 58 year veteran of the Vietnam war was diagnosed with permanent disabilities due to his two years of service. He does not have enough working space to be eligible for Social Security disability benefits but he does have a VA Pension benefit that offers cash and medical treatment for free based on financial need. He would like to find out if a personal injury settlement will affect his ability to be eligible for Veterans Disability Settlement this benefit.

The answer is dependent on whether the settlement is in the form of an unintentional lump sum or a structured settlement. Structured settlements are the ones that are paid over a long period of time rather than as a single payment and the amount paid by the defendant is used to offset any existing VA benefits. In contrast, a lump sum settlement will probably affect existing benefits since the VA considers it income and will annualize it. If Jim has excess assets after the settlement is annually adjusted, he can reapply to be eligible for the pension benefit. However the assets he has to be under a limit that the VA has determined to be a financial necessity.

Do I need to employ an attorney?

Many spouses, military personnel, and former spouses are confused about VA disability compensation and its impact on the financial aspects of divorce cases. There are many other reasons, but some people believe that the Department of veterans disability law Affairs' compensation payments are able to 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, the majority of disabled veterans disability lawsuit get the assistance of a professional lawyer. A disability attorney for veterans can examine your medical records in order to gather the evidence required to argue your case in front of the VA. The lawyer can also file any appeals that you might need to receive the benefits you are entitled to.

Most VA disability lawyers don't charge for consultations. Additionally the lawyer will usually be paid by the government directly from the retroactive past-due benefits. This is a benefit of the Equal Access to Justice Act. The percentage of retroactive past-due benefits that your lawyer will receive should be clearly outlined in your fee agreement. For example, a fee agreement can state that the government will pay the attorney up to 20% of retroactive benefits or pay. Any additional amounts are your obligation.

Can I Garnish My VA Benefits?

If a disabled veteran receives compensation from the VA it is received in the form of monthly payments. The purpose of the payments is to help offset the impact of diseases, injuries or disabilities sustained or aggravated by a veteran's service. Like all incomes, veterans disability benefits are subject to garnishment.

Garnishment lets a court order that an employer or government agency withhold money from the pay of a person who owes an amount and then pay it directly to a creditor. In the case of divorce, garnishment could be used to pay spousal support or child support.

There are situations where a veteran's benefits can be repaid. Most often, it is the case of a veteran who has waived his military retirement in order to receive disability compensation. In these situations the pension portion that is devoted to disability compensation can be garnished in order to meet family support obligations.

In other situations veterans' benefits could be withdrawn to cover medical expenses or past-due federal student loans. In these situations a court may be able to the VA to get the required information. A disabled veteran should employ an experienced lawyer to protect their disability benefits. This can stop them from having to rely on payday lenders and private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a major benefit for veterans disability lawyers and their families, however they come with their own set of issues. If a veteran divorces and receives an VA settlement, he or she should be aware of the impact this could have to the benefits they receive.

In this regard one of the major issues is whether or not disability benefits are considered assets which can be divided in divorce. This question has been answered in two ways. A Colorado court of appeals decision decided that VA disability payments were not property and therefore could not be divided this way. Another method is an U.S. Supreme Court ruling in Howell which held that garnishing a veteran's VA disability payments to pay for an alimony payment is a violation of the Uniformed Services Former Spouses Protection Act (USFSPA).

Another concern related to this topic is the treatment of disability benefits for child support and maintenance. The USFSPA and the Supreme Court both forbid states from counting disability benefits as income to be used for this purpose. However, some states have adopted the opposite approach. Colorado for instance, takes all income sources together to determine the amount needed to provide for a spouse. Colorado then adds disability payments to reflect their tax-free status.

In the end, it is crucial for veterans to know how their disability benefits will be affected if they get divorced and how their spouses who divorced them can affect their compensation. By being informed about these issues, vets can ensure their compensation as well as avoid the unintended consequences.