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How a Veterans Disability Settlement Can Affect a Divorce Case

Jim's 58 year old client is permanently disabled as a result of his military service. He receives a monthly Pension benefit from the Department of Veterans Affairs.

He wants to be aware of whether a verdict by a jury will affect his VA benefits. The answer is not. It will, however, affect the other sources of income he earns.

Can I receive compensation for an accident?

You may be eligible for a settlement if have served 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 costs resulting from your illness or injury. The kind of settlement you can receive depends on whether your medical condition is service-connected, or not connected, the VA benefits you are eligible for, and what your injury or accident will cost to treat.

For example, Jim is a 58-year old veteran who was diagnosed with permanent disabilities from two years of service during the Vietnam War. Jim does not have enough space for work to qualify for Social Security Disability benefits, however, he is able to claim the VA Pension, which provides cash and medical treatment for free according to his financial need. He would like to learn what the implications of a personal injury settlement will affect his eligibility to benefit from this benefit.

The answer is dependent on whether the settlement is in the form of one lump sum or a structured settlement. Structured settlements are based on payments over time rather than one single payment. The amount paid by the defendant is calculated to offset existing VA benefits. However, a lump sum payout will likely affect existing benefits since the VA considers it to be income and will annually calculate it. If Jim has extra assets after the settlement is annualized and he wants to reapply, he will receive the Pension benefit. However his assets must be less than a certain threshold 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 concerned about VA disability payments and their impact on money issues during divorce. Some people believe, for instance, that the Department of veterans disability litigation Affairs compensation payments can be split like the military retirement in divorce proceedings or that they're "off limits" in calculating child support and alimony. These misconceptions can lead to grave financial errors.

It is possible to file a claim for disability benefits by yourself however, the majority of disabled veterans disability compensation will benefit from the assistance from a competent lawyer. A veteran's disability lawyer who is experienced can review your medical documents and gather the required evidence needed to build a strong argument to the VA. The lawyer can also help to file any appeals that you require to secure the benefits you deserve.

Furthermore, the majority of VA disability lawyers do not charge fees for consultations. The government will also pay the lawyer directly from your payment of retroactive benefits. This is an advantage of the Equal Access to Justice Act. The percentage of retroactive past-due benefits your lawyer will receive must be specified in your fee agreement. A fee agreement may stipulate, for example, that the government will pay the attorney up 20 percent of retroactive benefits. Any additional amounts are your obligation.

Can I Garnish My VA Benefits?

If a disabled veteran receives compensation from the VA it is in the form of monthly payments. The purpose of the payments is to offset the effects of injuries, illnesses or disabilities that were sustained or aggravated during a veteran's service. The benefits for veterans with disabilities are subject to garnishment as is any other income.

Garnishment is a court-ordered procedure that an employer or a government agency withhold funds from the paycheck of a person who owes an amount and then pay it directly to the creditor. In the case of divorce, garnishment may be used to pay spousal maintenance or child support.

However, veterans disability settlement there are a few situations where disability benefits could be garnished. The most common scenario is that of a veteran who renounced his military retirement in order to receive disability compensation. In these instances the portion of the pension apportioned to disability pay can be garnished for family support obligations.

In other circumstances, veteran’s benefits can also be garnished to cover medical expenses or federal student loans that are over due. In these cases, a court can go directly to the VA for the information they require. It is essential for disabled veterans disability litigation to find a competent attorney to ensure that their disability benefits aren't taken away. This will prevent them from having to rely on payday loans or private loans. lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements are a great aid to veterans and their families. However, they come with their own set complications. If a veteran divorces and receives a VA settlement, he or she should be aware of the implications to the benefits they receive.

In this context, the main question is whether disability payments are considered assets that could be divided in a divorce. This question has been resolved in two ways. A Colorado court of appeals decision declared that VA disability payments were not property and could not be divided in this manner. The U.S. Supreme Court ruled in Howell that garnishing a veteran’s VA disability payments for Alimony was against the USFSPA.

Another issue related to this topic is how the disability benefits are interpreted in the context of child support and maintenance. The USFSPA and the Supreme Court both forbid states from claiming disability benefits as income for these purposes. Certain states use a different approach. Colorado for instance, adds all income sources together to determine the amount needed to provide for a spouse. Colorado then adds disability benefits to reflect their tax-free status.

It is also important that veterans disability case know the impact divorce has on their disability benefits and how their spouses who divorced could slash their benefits. By being aware of these issues, veterans can protect their compensation and veterans disability settlement avoid any unintended consequences.