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How a Veterans Disability Settlement Can Affect a Divorce Case

Jim's 58-year-old client is permanently disabled due to his military service. He receives a monthly pension from the Department of Veterans Affairs.

He would like to know how the jury's verdict will impact his VA benefits. The answer is that it will not. It will, however, affect the other sources of income he earns.

Can I receive compensation in the event of an accident?

If you have served in the military and are permanently disabled as a result of injuries or illnesses, you could be eligible for a veteran disability settlement. This settlement can help compensate you for medical expenses, lost income and other expenses resulting from your illness or injury. The kind of settlement you'll be able to receive will depend on whether your medical condition is service-connected, or not connected, what VA benefits you are eligible for, and the amount your injury or accident will cost to treat.

For instance, Jim is a 58-year veteran who was diagnosed with permanent disabilities following two years of service during the Vietnam War. He doesn't have enough work space to qualify for Social Security Disability benefits, however, he does have a VA Pension that provides free medical care and cash depending on the financial needs of his. He wants to learn what the implications of a personal injury settlement could affect his eligibility to receive this benefit.

The answer will depend on whether the settlement is a lump-sum or a structured one. Structured settlements are settlements that are paid over a long period of time rather than in a single payment, and the amount paid by the defendant is used to offset any existing VA benefits. A lump sum payment will impact any existing VA benefits as the VA will annually assess and count it as income. If Jim has extra assets after the settlement is annually adjusted then he is eligible to receive the Pension benefit. However the assets must be below a threshold the VA has set that establishes financial necessity.

Do I Need to Hire an Attorney?

Many service members, spouses and former spouses have questions about VA disability benefits and their impact on money issues during a divorce. Among other things, some people believe that the Department of veterans disability lawyer Affairs' compensation payments can be divided as a military pension in divorce or are "off limits" in calculation of child support and alimony. These misconceptions could lead grave financial errors.

It is possible to submit a claim for disability benefits on your own however, the majority of disabled veterans would require the help of a qualified lawyer. An experienced veteran's disability lawyer can examine your medical documents and gather the required evidence to present a strong case at the VA. The lawyer can also file any appeals you may require to receive the benefits you deserve.

Additionally, the majority of VA disability lawyers charge no fees for consultations. The government also pays the lawyer directly from your amount of retroactive benefits. This is an advantage of the Equal Access to Justice Act. The fee agreement should specify clearly the percentage of retroactive benefits to be paid to your lawyer. A fee agreement could state for instance that the government would give the attorney up to 20 percent of retroactive benefits. You are responsible for any additional amounts.

Can I Garnish My VA Benefits?

When a disabled veteran receives compensation from the VA the compensation is paid in the form of monthly payments. The funds are intended to offset some of the effects of disability, illness, or injuries sustained during or aggravated due to a veteran's military service. Like all income, the benefits for veterans disability attorney with disabilities are subject to garnishment.

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

There are certain situations where a veteran's benefits can be repaid. The most common scenario is that of a veteran who has renounced his military retirement in order to receive disability compensation. In these instances the portion of the pension allocated to disability payments can be garnished to pay family support obligations.

In other circumstances, veteran's benefit may be seized in order to pay medical bills or federal student loans that are over due. In these instances, a court can go directly to the VA for the information they need. A disabled veteran should seek out an experienced attorney to secure their disability benefits. This will prevent them from relying on payday lenders or private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be an enormous help for veterans and their families, but they do come with their own set of challenges. For example, Veterans Disability Settlement if a veteran gets divorced and receives an VA disability settlement, they should be aware of what this means for their benefits.

A major issue in this regard is whether or not the disability payments count as divisible assets in a divorce. This question has been answered in two ways. A Colorado court of appeals ruling determined that VA disability payments were not property and could not be divided this way. Another way is through an U.S. Supreme Court ruling in Howell that held that garnishing the veteran's VA disability benefits to pay for an alimony payment is a violation of the Uniformed Services Former Spouses Protection Act (USFSPA).

Another concern that is related to this topic is how the disability benefits are treated for purposes of child maintenance and support. The USFSPA and the Supreme Court both forbid states from claiming disability benefits as income for these purposes. Certain states use different approaches. Colorado is one example. It takes all income sources together to determine the amount needed to provide for a spouse. Colorado then adds on disability payments to reflect their tax-free status.

It is also important for veterans disability claim to understand how their disability benefits will be affected if they get divorced and how their ex-spouses can take advantage of their benefits. By being aware of these issues, veterans can safeguard their benefits and avoid unwanted consequences.