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How a veterans disability claim Disability Settlement Can Affect a Divorce Case

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

He wants to find out if a verdict from a jury will impact his VA benefits. The answer is that it will not. However, it could have an impact on his other sources of income.

Can I claim compensation for an accident?

If you've served in the military, and are permanently disabled because of injuries or illnesses, you could be eligible for a veterans disability settlement. This settlement will allow you to get compensation for medical expenses, lost wages, and other expenses resulting from your illness or injury. The kind of settlement you can receive will depend 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 instance, Jim is a 58-year veteran who was diagnosed with permanent disabilities from two years of service during 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 cash and medical treatment for free in accordance with financial need. He would like to determine if a personal accident settlement would affect his eligibility to receive this benefit.

The answer will depend on whether the settlement is in the form of one lump sum or a structured settlement. Structured settlements require payments over a period of time rather than one lump sum payment. The amount paid by the defendant is calculated to offset existing VA benefits. In contrast, a lump sum payout is likely to impact any benefits already in place because the VA considers it a tax-deductible income and will annually increase it. In the event that there are any excess assets are left after the period of twelve months when the settlement is annualized, Jim could be eligible for a new Pension benefit but only if his assets are below a threshold that the VA accepts as establishing financial need.

Do I have to hire an attorney?

Many spouses, military personnel, and former spouses are confused about VA disability compensation and its impact on money issues in divorce cases. In addition, some people think that the Department of veterans disability attorneys Affairs' compensation payments can be split like a military pension in a divorce or Veterans Disability Settlement that they are "off limits" in calculation of child support and alimony. These misconceptions can lead to financial mistakes which can have serious consequences.

While it is possible to do an initial claim for disability benefits on your own, most disabled veterans disability attorneys benefit from the assistance of an experienced lawyer. A skilled veteran's disability lawyer will examine your medical documents and gather the required evidence to support your case to the VA. The lawyer can also file any appeals you might require to receive the benefits you are entitled to.

In addition, the majority of VA disability lawyers don't charge fees for consultations. The government will also pay the lawyer directly from the award of retroactive benefits. This is one of the benefits of the Equal Access to Justice Act. The fee agreement should specify clearly the amount of retroactive benefits that will be paid to your lawyer. A fee agreement could say, for example, that the government would pay the attorney up 20 percent of retroactive benefits. The attorney is responsible for any additional amount.

Can I Garnish My VA Benefits?

The VA pays a monthly amount of compensation to disabled veterans disability case. The payments are meant to offset some of the consequences of illnesses, disabilities or injuries that are sustained or aggravated by a veteran's military service. Like all incomes, veterans disability benefits can be subject to garnishment.

Garnishment can be a legal proceeding that permits a court to require an employer or government agency to withhold funds from the pay of an employee who is in debt and to send them directly to a creditor. In the event of a divorce garnishment may be used to pay child or spousal care.

However, there are some situations in which a veteran's disability benefits can be repaid. Most often, it is the case of a veteran who has waived his military retirement to receive disability compensation. In these situations the amount of pension that is devoted to disability payments can be garnished in order to fulfill the family support obligations.

In other instances, a veteran’s benefits can also be seized in order to pay for medical expenses or federal student loans that are past due. In these cases, a court can go directly to the VA for veterans disability settlement the information they need. A disabled veteran should hire an experienced attorney to secure their disability benefits. This can prevent them from having to rely on payday lenders or private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements are an excellent assistance to veterans and their families. However they also come with their own set of complications. If a veteran divorces and receives an VA settlement then they must be aware of the implications to the benefits they receive.

In this regard the most important question is whether disability payments are considered assets which can be divided in a divorce. This issue has been settled in a variety of ways. One way is by an Colorado court of appeals decision that found that VA disability payments are not property and can't be divided in that way. The other way is by the U.S. Supreme Court ruling in Howell which ruled that garnishing the veteran's VA disability payments to pay for Alimony is against the Uniformed Services Former Spouses Protection Act (USFSPA).

Another concern related to this subject is how disability benefits are interpreted to determine child maintenance and support. The USFSPA and the Supreme Court both forbid states from counting disability benefits as income to be used for this purpose. However, some states have chosen to take a different approach. For instance, Colorado adds up all sources of income to determine how much in support a spouse requires and then pluses up the disability payments to take into the fact that they are tax-free.

Additionally, it is essential for veterans disability attorneys to know how their disability benefits will be affected if they become divorced and how their ex-spouses can affect their compensation. By being aware of these issues, vets can ensure their compensation as well as avoid the unintended consequences.