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How a Veterans Disability Settlement Can Affect a Divorce Case

Jim's 58 year old client is permanently disabled because of his service in the military. He receives a monthly pension benefit from the Department of veterans disability case Affairs.

He wants to know if the verdict of a jury will impact his VA benefits. It will not. However, it could have an impact on the other sources of income he has.

Can I Get Compensation for an accident?

You could be eligible for a settlement if were in the military but are now permanently disabled as a result of injuries or illnesses. This settlement can help compensate you for medical expenses, lost income and other expenses resulting from your injury or sickness. The type of settlement you can receive will depend on whether your medical condition is service-connected, or not connected, the VA benefits you are eligible for, and how much your accident or injury will cost to treat.

For example, Jim is a 58-year veteran who was diagnosed with permanent disabilities after two years of service during the Vietnam War. He doesn't have enough work space to qualify for Social Security Disability benefits, however, he is able to claim the VA Pension, which provides cash and Veterans Disability Settlement medical care for free based on his financial need. He would like to understand how a personal injury lawsuit can affect his ability to get this benefit.

The answer depends on whether the settlement is in the form of a lump sum or a structured settlement. Structured settlements are settlements that are paid over a time period rather than a single payment and the amount paid by the defendant is used to offset any existing VA benefits. A lump sum payment can impact any existing VA benefits as the VA will annually evaluate and consider it as income. In any event, if extra assets are left after the twelve-month period when the settlement is annualized Jim could reapply for the 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 require an attorney?

Many spouses, service members and former spouses have questions about VA disability benefits and their impact on financial issues during divorce. Some people believe, for instance, that the Department of veterans disability lawsuit Affairs compensation payments are split like military retirements in divorce cases or that they're "off limits" in calculating child support and Alimony. These misconceptions could lead serious financial errors.

It is possible to file an application for disability benefits by yourself however, the majority of disabled veterans will benefit from the assistance of a professional lawyer. A veteran's disability attorney will review your medical records to gather the necessary evidence to present a convincing case to the VA. The lawyer can also help to make any appeals you need to get the benefits you deserve.

In addition, the majority of VA disability lawyers don't charge fees for consultations. Additionally the lawyer will usually be paid by the government directly from your award of retroactive past-due benefits. This is a benefit of the Equal Access to Justice Act. The proportion of retroactive past-due benefits that your lawyer will be paid should be outlined in your fee agreement. A fee agreement could say for instance that the government will pay the attorney up 20% of retroactive benefits. You will be accountable for any additional sums.

Can I Garnish My VA Benefits?

When disabled veterans receive compensation from the VA the compensation is paid 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 during the course of a veteran's time of service. The veterans disability legal disability benefits are subject to garnishment, as is any other income.

Garnishment is a legal process that allows a court to make an order to an employer or government agency to deduct funds from the pay of an employee who owes money, and then send them directly to the creditor. In the event of a divorce garnishment can be used to pay child or spousal care.

There are some situations where the benefits of a veteran can be encashable. The most common scenario is that of a veteran who renounced his military retirement to receive disability compensation. In these instances, the portion of pension that is devoted to disability compensation can be garnished to cover the obligations of family support.

In other situations, veteran’s benefits can also be garnished in order to cover medical expenses or federal student loans that are over due. In these instances a judge can refer a case directly to the VA for the information they need. A disabled veteran should seek out an experienced attorney to safeguard their disability benefits. This can prevent them from relying on payday lenders or private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements are a tremendous aid to veterans and their families. However they have certain complications. If a person divorces and receives a VA settlement it is important to be aware of the implications to their benefits.

One of the major issues in this regard is whether disability payments are considered divisible assets in a divorce. This question has been resolved in a variety of ways. One way is by the Colorado court of appeals decision which concluded that VA disability payments are not property, and therefore cannot be divided in this way. The U.S. Supreme Court ruled in Howell that garnishing a veteran's VA disability payments for alimony was a violation of USFSPA.

Another concern with this subject is the treatment of disability benefits to children for support and maintenance. The USFSPA and the Supreme Court both forbid states from counting disability payments as income for these purposes. Certain states take different methods. Colorado, for example, adds all income sources together to determine the amount needed to support a spouse. It then adds disability income to account for their tax-free status.

It is also important for veterans to understand how their disability compensation will be affected when they get divorced and how their ex-spouses may affect their compensation. By knowing about these issues, veterans can safeguard their benefits and avoid unintended consequences.