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How a Veterans Disability Settlement Can Affect a Divorce Case

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

He would like to know how a jury award will impact his VA benefits. The answer is not. It will, however, have an impact on his other income sources.

Can I claim compensation in the event of an accident?

You could be eligible to receive a settlement if you were a soldier but are now permanently disabled because of injuries or illnesses. This settlement can help compensate you for medical bills, lost income and other costs that resulted from your injury or sickness. The type of settlement that you can receive will depend on whether your injury or illness is related to service, what VA benefits you qualify for, and the cost to treat your injury or accident.

For instance, Jim is a 58-year old veteran who was diagnosed with permanent disabilities after two years of service during the Vietnam War. He hasn't got enough work space to qualify for Veterans Disability Settlement Social Security disability benefits but He does have a VA Pension benefit, which offers cash and medical treatment for free dependent on financial need. He wants to determine if a personal accident settlement would affect his eligibility to get this benefit.

The answer is dependent on whether the settlement is in the form of a lump sum or a structured settlement. Structured settlements are based on payments over time instead of one lump sum payment. The amount paid by the defendant is calculated to offset the existing VA benefits. However, a lump sum settlement will probably impact any benefits already in place because the VA considers it income and will annualize it. In any case, if there are excess assets remain after the twelve-month period after the settlement is annually recalculated, Jim could be eligible for a new pension benefit, but only if his assets are less than a minimum threshold that the VA is able to agree establishes financial need.

Do I have to hire an attorney?

Many spouses, military personnel, and former spouses have concerns about VA disability payments and their effect on financial issues during a divorce. Among other things, some people think that the Department of veterans disability settlement Affairs' compensation payments can be divided like a military pension a divorce or that they are "off limits" when it comes to calculation of child support and Alimony. These misconceptions could lead to financial mistakes that can have grave consequences.

While it is possible to file an initial claim for disability benefits on your own, the majority of disabled veterans disability settlement require the help of a qualified lawyer. A veteran's disability lawyer who is experienced can review your medical documents and gather the required evidence needed to build a strong case to the VA. The lawyer can also file any appeals that you may need in order to get the benefits you deserve.

The majority of VA disability lawyers don't charge for consultations. The government also pays 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 that your lawyer will be paid should be clearly outlined in your fee agreement. For instance your fee agreement may specify that the government will pay the lawyer up to 20% of retroactive benefits or award. You will be responsible for any additional amounts.

Can I Garnish My VA Benefits?

If a disabled veteran receives compensation from the VA the compensation is paid in the form of monthly payments. These payments are designed to alleviate the effects of injuries, illnesses or disabilities that have been sustained or aggravated during a veteran's time of service. Like other income sources, veterans disability compensation disability benefits can be subject to garnishment.

Garnishment permits a court order that an employer or government agency deduct money from the wages of a person who owes a debt and send it directly to the creditor. In the event of a divorce the garnishment could be used for child or spousal maintenance.

There are certain situations where a veteran's benefits can be encashable. Most common is the veteran who renounced his military retirement to receive disability compensation. In these situations, the portion of pension that is devoted to disability benefits can be garnished to fulfill the family support obligations.

In other circumstances, a veteran's benefits can be garnished to pay for medical expenses or past-due federal student loans. In these cases the court can go directly to the VA for the information they require. It is vital for disabled veterans disability lawsuit to work with a reputable lawyer to ensure that their disability benefits aren't taken away. This can stop them from relying on payday lenders or private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a huge aid to veterans and their families. However they also come with their own set complications. If a veteran divorces and receives an VA settlement it is important to know what this will do to the benefits they receive.

In this case the most important question is whether disability payments are considered assets that can be split in divorce. This question has been resolved in a variety of ways. One option is a Colorado court of appeals ruling that concluded that VA disability payments are not property, and therefore cannot be divided as such. Another method is the U.S. Supreme Court ruling in Howell that ruled that garnishing a veteran's VA disability benefits to pay for alimony is a violation of the Uniformed Services Former Spouses Protection Act (USFSPA).

Another concern related to this subject is how disability benefits are treated in the context of child maintenance and support. Both the USFSPA, and the Supreme Court, prohibit states from counting disability benefits as income. Certain states take an alternative approach. For instance, Veterans Disability Settlement Colorado adds up all sources of income to determine how much in support a spouse is entitled to and then adds the disability payments to take account that they are tax-free.

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