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How a Veterans Disability Settlement Can Affect a Divorce Case

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

He wants to know if a jury verdict will affect his VA benefits. It won't. However, it could have an impact on his other sources of income.

Can I get compensation in the event of an accident?

If you have served in the military and are permanently disabled because of injuries or Veterans Disability Settlement illnesses, you may be eligible for a veterans disability settlement. This settlement can help you receive compensation for your medical bills, lost wages, and other expenses that result from your illness or injury. The kind of settlement you'll be able to receive depends on whether your condition is service-connected or non-service connected, what VA benefits you are eligible for, and what your accident or injury will cost to treat.

For example, Jim is a 58-year old veteran who was diagnosed with permanent disabilities from two years of service in the Vietnam War. He does not have enough working space to be eligible for Social Security disability benefits but He does have a VA Pension benefit which provides medical care and cash in accordance with 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 either a lump sum or structured settlement. Structured settlements consist of payments over time instead of one lump sum payment. The amount paid by defendant is calculated to offset the existing VA benefits. In contrast, a lump sum payout is likely to impact any benefits already in place because the VA considers it to be income and will annually calculate it. In either case, if excess assets are left after the twelve month period after the settlement is annually recalculated, Jim could apply again for the Pension benefit, but only if his assets are less than a minimum threshold that the VA accepts as establishing financial need.

Do I Need to Hire an attorney?

Many service members, spouses, and former spouses have concerns about VA disability payments and their effect on financial issues in divorce. Some people believe, among other things, that the Department of Veterans Affairs compensation payments can be split as the military retirement in divorce cases, or that they're "off limits" in calculating child support and Alimony. These misconceptions could lead grave financial errors.

It is possible to file an application for disability benefits yourself however, the majority of disabled veterans disability claim would require the help of a professional lawyer. An experienced veteran's disability lawyer can examine your medical documents and gather the required evidence needed to build a strong case to the VA. The lawyer can also help to file any appeals that you require to receive the benefits you are entitled to.

Furthermore, the majority of VA disability lawyers do not charge fees for consultations. In addition the lawyer will usually be paid by the government directly from your retroactive past due benefits. This is an advantage of the Equal Access to Justice Act. The amount of retroactive past due benefits your lawyer will receive should be clearly stated in your fee agreement. A fee agreement may stipulate that, for example, the government would give the attorney up to 20 percent of retroactive benefits. The attorney is responsible for any additional amount.

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 alleviate the effects of diseases, injuries or disabilities that have been sustained or aggravated during a veteran's service. The benefits for veterans disability attorney with disabilities are subject to garnishment like any other income.

Garnishment is a court-ordered procedure that an employer or government agency withhold money from the pay of a person who owes an obligation and pay it directly to the creditor. In the case of a divorce, Veterans Disability Settlement garnishment can be used to pay spousal or child support or child support.

However, there are certain situations in which a veteran's disability benefits could be refunded. Most common is the veteran who has renounced his retirement from the military in order to receive disability compensation. In these situations the portion of the pension that is attributed to disability benefits can be garnished for family support obligations.

In other situations veterans' benefits could be garnished to pay for medical expenses or past due federal student loans. In these instances a court may be able to the VA to get the required information. It is crucial for a disabled veteran to find a competent attorney to ensure that their disability benefits aren't garnished. This can prevent them from having to rely on payday lenders and private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a major aid to veterans disability case and their families, but they come with their own set of complications. For example, if a veteran gets divorced and is awarded a VA disability settlement, they should be aware of how this will affect the benefits they receive.

One of the major issues in this regard is whether or not disability payments count as divisible assets in a divorce. This question has been resolved in two ways. A Colorado court of appeals decision found that VA disability payments were not property and therefore could not be divided in this manner. Another way is through a U.S. Supreme Court ruling in Howell which held that garnishing a veteran's VA disability payments to pay for Alimony is against the Uniformed Services Former Spouses Protection Act (USFSPA).

Another issue that is related to this issue is the treatment of disability benefits for child support and maintenance. The USFSPA and the Supreme Court both forbid states from counting disability benefits as income for these purposes. However, some states have adopted a different approach. Colorado for instance adds all sources of income 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 to understand how their disability benefits will be affected when they get divorced and how their spouses who divorced them can garnish their compensation. By being aware of these issues, veterans disability lawsuit can safeguard their benefits as well as avoid unintended consequences.