How a Veterans Disability Settlement Can Affect a Divorce Case

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

He would like to know how the jury's verdict will affect his VA benefits. It will not. But it will have some impact on his other sources of income.

Do I have the right to receive compensation in the event of an accident?

You could be eligible for a settlement in the event that you have served in the military, but are now permanently disabled as a result of injuries or illnesses. This settlement will allow you to receive compensation for your medical bills, lost wages and other expenses related to your injury or illness. The type of settlement that you are eligible for will depend on whether or not your illness or injury is a result of a service connection, the VA benefits you qualify to receive, and the amount to treat your accident or injury.

Jim who is a 58-year old Vietnam veteran, was diagnosed as having permanent disabilities because of his two years of service. Jim does not have enough work space to be eligible for Social Security Disability benefits, however, he can claim the VA Pension which offers cash and medical care for free based on his financial need. He would like to learn how a personal injury lawsuit will affect his eligibility to receive this benefit.

The answer will depend on whether the settlement is in the form of a lump sum or a structured settlement. Structured settlements are settlements that are paid over a long period of time rather than a single payment, and the amount paid by the defendant is used to offset any existing VA benefits. In contrast, a lump sum payout will likely affect any existing benefits because the VA considers it as income and will increase it. In either case, if excess assets are left over after the 12 month period after the settlement is annually recalculated, Jim may be eligible to apply again for the Pension benefit, but only if his assets fall below a certain threshold that the VA determines to be a 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 financial issues in a divorce case. In addition, some people think that the Department of veterans disability attorneys Affairs' compensation payments can be split like a pension from a military service in divorce or are "off limits" in the calculation of child support and alimony. These misconceptions could lead to financial mistakes that can have grave consequences.

It is possible to file a claim for disability benefits by yourself However, most disabled veterans would require the help from a competent lawyer. A disability attorney for veterans can examine your medical records to gather the necessary evidence to make a strong argument before the VA. The lawyer can also help to file any appeals that you require to secure the benefits you're entitled to.

Moreover, most VA disability lawyers don't charge fees for consultations. The government will also pay the lawyer directly from the payment of retroactive benefits. This is a benefit of the Equal Access to Justice Act. The fee agreement should clearly state the proportion of retroactive benefits to be paid to your lawyer. A fee agreement could stipulate, for example, Veterans Disability Settlement that the government would pay the attorney 20% of retroactive benefits. You are responsible for any additional amount.

Can I Garnish My VA Benefits?

When disabled veterans receive compensation from the VA it is in the form of monthly payments. The funds are intended to help offset the effects of diseases, disabilities or injuries incurred during or aggravated during a veteran's military service. As with all income, veterans disability benefits are subject to garnishment.

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

There are situations where veterans' benefits could be repaid. The most common situation involves a veteran who waived their military retirement to get disability compensation. In these instances, the amount of pension allocated to disability payments can be garnished to pay family support obligations.

In other instances veterans' benefits could be withdrawn to cover medical expenses or past due federal student loans. In these cases the court could go directly to the VA to obtain the information they require. It is essential for a disabled veteran to find a competent attorney to ensure that their disability benefits are not garnished. This can help them avoid having to rely on payday loans and private loans. lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements are an excellent help to veterans as well as their families. However they have their own set of complications. If a veteran gets divorced and receives an VA settlement and is eligible, they should be aware of the impact this could have to their benefits.

In this case the most important question is whether or not disability benefits are considered assets that can be divided in a divorce. This issue has been addressed in a variety of ways. A Colorado court of appeals decision decided that VA disability payments were not property and could not be divided this way. Another way is through an U.S. Supreme Court ruling in Howell which ruled that garnishing the veteran's VA disability payments to pay for an alimony payment is a violation of the Uniformed Services Former Spouses Protection Act (USFSPA).

Another concern related to this subject is how disability benefits are interpreted for purposes of child support and maintenance. 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 needed to support a spouse. It then adds disability income to account for Veterans Disability Settlement their tax-free status.

It is also important that veterans disability lawyers understand how their disability compensation will be affected when they get divorced and how their ex-spouses can garnish their compensation. By being aware of these issues, veterans disability settlement can safeguard their benefits as well as avoid any unintended consequences.