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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 gets a monthly pension from the Department of veterans disability attorneys Affairs.

He wants to know how the jury's verdict will affect his VA benefits. It won't. But it will have an impact on his other sources of income.

Do I have the right to receive compensation for an accident?

You could be eligible for a settlement if were a soldier but are now permanently disabled because of injuries or illnesses. This settlement can help you get compensation for medical expenses, lost wages, and other expenses resulting from your illness or injury. The type of settlement you can receive depends on whether your health condition is non-service connected, the VA benefits you are eligible for, and what your accident or injury will cost to treat.

Jim, a 58 year old Vietnam veteran, was diagnosed as having permanent disabilities due to his two years of service. He hasn't got enough work space to qualify for Social Security disability benefits but there is a VA Pension benefit that offers cash and free medical assistance dependent on financial need. He wants to be aware of whether a personal injury settlement would affect his eligibility to get this benefit.

The answer is contingent upon whether the settlement is a lump-sum or a structured one. Structured settlements are settlements that are paid over a period of time rather than in a single payment and the amount paid by the defendant is calculated to offset any existing VA benefits. A lump sum settlement can impact any existing VA benefits because the VA will annually calculate and consider it to be income. In the event that there are any excess assets remain 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 are below a threshold that the VA accepts as establishing financial need.

Do I need to employ an attorney?

Many service members, spouses and former spouses are confused about VA disability compensation and its effect on the financial aspects of divorce cases. Some people believe that the Department of veterans disability lawyers Affairs' compensation payments can be split like a military pension a divorce or that they are "off limits" when it comes to calculation of child support and Alimony. These misconceptions may lead to serious financial errors.

While it is possible to submit an initial claim for disability benefits on your own, many disabled veterans can benefit from the assistance of a skilled lawyer. A veteran's disability attorney can look over your medical records and Veterans disability settlement collect the evidence necessary to make a strong case before the VA. The lawyer can also file any appeals you may need in order to receive the benefits you deserve.

Additionally, the majority of VA disability lawyers do not charge fees for consultations. The government will also pay the lawyer directly from the amount of retroactive 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 clearly outlined in your fee agreement. A fee agreement could stipulate for instance that the government will pay the attorney 20 percent of retroactive benefits. You are responsible for any additional costs.

Can I Garnish My VA Benefits?

The VA pays a monthly amount of compensation to disabled veterans. The payments are meant to help offset the effects of disabilities, diseases or injuries sustained or aggravated due to a veteran's military service. The benefits for veterans disability legal' disability are subject to garnishment as is any other income.

Garnishment lets a court order that an employer or government agency stop money from the pay of a person who is in the process of paying the debt and pay it directly to a creditor. In the event of a divorce garnishment may be used to pay child or spousal support.

However, there are certain circumstances where a veteran's disability benefits may be repaid. Most common is the veteran who has waived his military retirement in order to receive disability compensation. In these situations the portion of the pension that is attributed to disability benefits could be garnished to meet family support obligations.

In other cases, a veteran’s benefits can also be garnished in order to pay for medical expenses or federal student loans that are over due. In these situations the court can go directly to the VA to obtain the information they need. It is essential for a disabled veteran to find a competent attorney to ensure that their disability benefits aren't garnished. This will stop them from relying on payday lenders or private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a major assistance to veterans disability case and their families, however they do come with their own set-of complications. For example the case where a veteran is divorced and receives a VA disability settlement, they should know how this will affect their benefits.

In this regard, the main question is whether disability payments are considered to be assets that can be divided in divorce. This question has been resolved in a variety of ways. One option is the Colorado court of appeals decision, which found that VA disability payments are not property and 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 issue related to this issue is how disability benefits are treated to determine child support and maintenance. The USFSPA and the Supreme Court both forbid states from claiming disability benefits as income to be used for this purpose. Some states have different approaches. For instance, Colorado adds up all sources of income to determine the amount in support a spouse requires and then pluses up the disability benefits to take into account that they are tax free.

It is also important that veterans know how divorce will affect their disability benefits and how ex-spouses can slash their income. By knowing about these issues, veterans disability settlement can safeguard their income and avoid unintended consequences.