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How a Veterans Disability Settlement Can Affect a Divorce Case

Jim's client, a 58 year old man is permanently disabled as a result of his military service. He receives a monthly Pension benefit from the Department of Veterans Affairs.

He wants to know how the jury's verdict will impact his VA benefits. The answer is that it will not. But it will have an impact on the other sources of income he has.

Can I receive compensation in the event of an accident?

You could be eligible for a settlement in the event that you served in the military but are now permanently disabled as a result of injuries or illnesses. This settlement will pay you for medical bills, lost income and other expenses resulting from your injury or sickness. The type of settlement you will receive will depend on whether your illness or injury is service-connected, what VA benefits you are eligible to receive, and the amount to treat your accident or injury.

For instance, Jim is a 58-year old veteran who was diagnosed with permanent disabilities after two years of service in the Vietnam War. He isn't in a position to have enough work space to be eligible for Social Security Disability benefits, however, he does have a VA Pension that provides cash and medical care for free depending on the financial needs of his. He would like to understand what the implications of a personal injury settlement could affect his eligibility to get this benefit.

The answer will depend on whether the settlement is in the form of either a lump sum or structured settlement. Structured settlements involve payments over time, rather than one single payment. The amount paid by the defendant is calculated to offset existing VA benefits. However, a lump sum payment will likely impact any benefits already in place because the VA considers it income and will annualize it. In any event, if extra assets remain after the 12 month period after the settlement is annually recalculated, Jim could be eligible for a new Pension benefit but only if his assets are lower than a threshold with which the VA agrees establishes financial need.

Do I need to hire an Attorney?

Many service members, spouses and former spouses are confused about VA disability compensation and its impact on the financial aspects of divorce cases. Some people believe, among other things that the Department of veterans disability attorneys (supplemental resources) Affairs compensation payments can be divided like military retirements in a divorce case or that they're "off limits" when calculating child support and alimony. These misconceptions can result in financial mistakes that have serious consequences.

It is possible to file a claim for disability benefits yourself However, most disabled veterans would require the help of a skilled lawyer. A qualified veteran's disability lawyer can review your medical documents and gather the required evidence to make a convincing case at the VA. The lawyer will also be able to submit any appeals 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. Your fee agreement should specify clearly the proportion of retroactive benefits that will be paid to your lawyer. A fee agreement could say that, for example, the government will give the attorney up to 20% of retroactive benefits. Any additional amount is your obligation.

Can I Garnish My VA Benefits?

The VA pays monthly compensation to disabled veterans disability lawyer. The purpose of the payments is to help offset the impact of injuries, diseases or disabilities that were sustained or aggravated by a veteran's service. The benefits for veterans disability legal' disability are subject to garnishment, as is any other income.

Garnishment is a legal process that allows a court to make an order to an employer or government agency to omit funds from the pay of someone who owes money, and then send them directly to the creditor. In the event of divorce, the garnishment could be used for child or spousal maintenance.

There are a few situations in which veterans' benefits could be encashable. The most common scenario is that of a veteran who waived his retirement from the military in order to receive disability compensation. In these instances the amount of pension apportioned to disability pay can be garnished to pay family support obligations.

In other circumstances, a veteran's benefits can 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 obtain the necessary information. A disabled veteran should hire an experienced lawyer to protect their disability benefits. This can stop 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 huge help to veterans as well as their families. However they do come with certain complications. For example in the event that a veteran gets divorced and veterans disability attorneys is awarded an VA disability settlement, they should know how this will affect the benefits they receive.

In this regard, a major question is whether disability benefits are considered assets which can be divided in a divorce. This question has been resolved in two ways. One option is a Colorado court of appeals decision which concluded that VA disability payments are not property and therefore cannot be divided in that way. Another way is through an U.S. Supreme Court ruling in Howell that ruled that garnishing a veteran's VA disability payments to pay alimony is a violation of the Uniformed Services Former Spouses Protection Act (USFSPA).

Another concern related to this issue is the treatment of disability benefits for child maintenance and support. Both the USFSPA and the Supreme Court, prohibit states from utilizing disability benefits as income. Certain states employ a different approach. Colorado for instance, adds all sources of income together to determine the amount required to support a spouse. It then adds disability benefits in order to account for their tax-free status.

It is also vital that veterans disability legal know how divorce affects their disability compensation and how their ex spouses can slash their income. By knowing about these issues, veterans can protect their income and avoid unintended consequences.