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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 Affairs.

He would like to know if a jury verdict will impact his VA benefits. The answer is not. But it will have an impact on his other sources of income.

Can I Receive Compensation for an Accident?

You may be eligible for a settlement if you have served in the military, but are now permanently disabled because of injuries or illnesses. This settlement could help you receive compensation for your medical expenses, lost wages, and other costs resulting from your illness or injury. The kind of settlement you can receive will depend on whether your illness or injury is related to service, what VA benefits you qualify for, as well as the cost to treat your accident or injury.

Jim, a 58 year old Vietnam veteran was diagnosed with permanent disabilities because of his two years of service. He does not have enough working space to be eligible for Social Security disability benefits but He does have a VA Pension benefit that provides cash and free medical assistance dependent on financial need. He would like to find out if a personal injury settlement will affect his ability to be eligible for this benefit.

The answer depends on whether the settlement is in the form of one lump sum or a structured settlement. Structured settlements are the ones that are paid over a time period instead of in one payment, and the amount paid by the defendant is used to offset any existing VA benefits. In contrast, a lump sum payout is likely to affect existing benefits since the VA considers it a tax-deductible income and will annually increase it. In any event, if extra assets are left after the twelve-month period when the settlement is annualized, Jim may be eligible to apply again for the pension benefit, but only if his assets fall lower than a threshold with which the VA accepts as establishing financial need.

Do I need to hire an Attorney?

Many spouses, military personnel, and former spouses have questions about VA disability payments and their impact on money issues during a divorce. In addition, some people believe that the Department of Veterans Affairs' compensation payments can be split as a military pension in divorce or are "off limits" in the calculation of child support and alimony. These misconceptions can lead to financial errors which can have serious consequences.

It is possible to file an application for disability benefits by yourself, but most disabled veterans will benefit from the assistance of a qualified lawyer. An experienced veteran's disability lawyer will examine your medical documents and gather the required evidence to make a convincing argument to the VA. The lawyer can also help to file any appeals that you need to get the benefits you deserve.

The majority of VA disability lawyers don't charge for consultations. The government also pays the lawyer directly from your benefit of retroactive benefits. This is an advantage of the Equal Access to Justice Act. The fee agreement should clearly specify the proportion of retroactive benefits that will be paid to your lawyer. A fee agreement could stipulate, for example, that the government would pay the attorney 20% of retroactive benefits. Any additional amount is your obligation.

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 purpose of the payments is to alleviate some of the effects of disability, illness or injuries incurred during or aggravated by a veteran's military service. Like all incomes, veterans disability benefits are subject to garnishment.

Garnishment is a legal action that permits a court to order an employer or government agency to withhold funds from the wages of a person who owes money and send them directly to an individual creditor. In the event of a divorce, garnishment could be used to pay spousal maintenance or child support.

There are certain situations where the benefits of a veteran can be repaid. Most often, it is the case of a veteran who has waived his military retirement to receive disability compensation. In these cases the amount of pension that is allocated to disability pay could be garnished to meet family support obligations.

In other instances, a veteran’s benefits can also be seized in order 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 need. It is crucial for disabled veterans to find a competent attorney to ensure that their disability benefits are not taken away. This will prevent them from having to rely on payday loans and private loans. lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a huge benefit for veterans disability law firm and their families, but they come with their own set-of complications. If a veteran divorces and receives a VA settlement it is important to be aware of the implications to their benefits.

In this regard the most important question is whether disability payments count as assets which can be divided in a divorce. The issue has been resolved in a couple of ways. One method is the Colorado court of appeals ruling that concluded that VA disability payments are not property and can't be divided in this way. The U.S. Supreme Court ruled in Howell, that garnishing a veteran's VA disability benefits for Alimony was against the USFSPA.

Another concern related to this subject is how disability benefits are interpreted in the context of child maintenance and support. Both the USFSPA, and the Supreme Court, prohibit states from claiming disability benefits as income. However, certain states have adopted different approaches. For instance, Colorado adds up all sources of income to determine how much in support a spouse requires and then adds the disability payments to take into the fact that they are tax-free.

In the end, it is crucial for veterans to understand how their disability benefits will be affected if they get divorced and how their ex-spouses may be able to garnish their compensation. By being informed about these issues, veterans can safeguard their benefits and avoid any unintended consequences.