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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 from the Department of veterans disability lawyers Affairs.

He wants to know how the jury's verdict will affect his VA benefits. The answer is not. It will, however, have an impact on the other sources of income he earns.

Can I Receive Compensation in the event of an accident?

You could be eligible for a settlement in the event that you were in the military but are now permanently disabled as a result of injuries or illnesses. This settlement will pay you for medical bills, lost income and other expenses resulting from your injury or sickness. The type of settlement that you will receive will depend on whether or not your illness or injury is service-connected, what VA benefits you are eligible to receive, and the amount to treat your injury or accident.

Jim who is a 58-year veteran of the Vietnam war, was diagnosed as having permanent disabilities due to his two years of service. He isn't in a position to have enough space for work to qualify for Social Security Disability benefits, however, he does have the VA Pension which offers free medical care and cash based on his financial need. He wants to learn how a personal injury lawsuit will affect his eligibility to get this benefit.

The answer is contingent upon whether the settlement is in the form of one lump sum or a structured settlement. Structured settlements consist of payments over time instead of one payment. The amount paid by the defendant is calculated to offset existing VA benefits. A lump sum settlement will impact any existing VA benefits as the VA will annualize and consider it as income. If Jim has extra assets after the settlement is annually adjusted, he can reapply to be eligible for the pension benefit. However the assets must be below a threshold the VA has set to establish financial necessity.

Do I require an attorney?

Many spouses, military personnel and former spouses are concerned about VA disability benefits and their impact on financial issues during a divorce. Among other things, 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 financial mistakes that have serious repercussions.

While it is possible to submit an initial claim for disability benefits by yourself, the majority of disabled Veterans Disability compensation require the help of a qualified attorney. A veteran's disability attorney will examine your medical records in order to gather the evidence needed to argue your case to the VA. The lawyer can also file any appeals that you may require to receive the benefits you are entitled to.

The majority of VA disability lawyers don't charge for consultations. The government also pays the lawyer directly from the amount of retroactive benefits. This is a benefit of the Equal Access to Justice Act. The fee agreement should specify clearly the percentage of retroactive benefits that will be paid to your lawyer. For example, a fee agreement can provide that the government can pay the attorney up to 20% of the retroactive benefits or award. You are responsible for any additional costs.

Can I Garnish My VA Benefits?

The VA pays monthly compensation to disabled veterans disability case. The purpose of the payments is to offset some of the consequences of illnesses, disabilities or injuries sustained or aggravated by a veteran's military service. The benefits for veterans' disability are subject to garnishment, like any other income.

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

There are situations where veterans disability claim' benefits could be repaid. The most frequent is the veteran who waived his retirement from the military in order to receive disability compensation. In these cases the pension portion that is allocated to disability compensation can be garnished to fulfill the family support obligations.

In other situations, Veterans Disability Settlement veteran's benefits could be seized in order to pay medical expenses or federal student loans that are over due. In these situations the court might be able to direct the case to the VA to obtain the necessary information. It is essential for disabled veterans to retain a knowledgeable lawyer to ensure that their disability benefits are not garnished. This will allow them to avoid having to depend on payday and private loan lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be an enormous benefit for veterans and their families, however they don't come without their own set-of complications. For instance the case where a veteran is divorced and is awarded an VA disability settlement, they should know what this means for the benefits they receive.

In this regard, a major question is whether disability benefits are considered assets that can be split in divorce. This question has been resolved in a variety of ways. A Colorado court of appeals ruling determined that VA disability payments were not property and could not be divided this way. The U.S. Supreme Court ruled in Howell that garnishing a veteran’s VA disability payments for the purpose of alimony was in violation of USFSPA.

Another concern with this subject is the treatment of disability benefits for child support and maintenance. The USFSPA and the Supreme Court both forbid states from counting disability payments as income to be used for this purpose. Some states have 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 crucial that veterans are aware of how divorce will affect their disability compensation and how ex-spouses can slash their income. By knowing about these issues, veterans can safeguard their benefits and avoid unwanted consequences.