How a Veterans Disability Settlement Can Affect a Divorce Case

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

He wants to know if the jury's verdict will affect his VA benefits. It will not. But it will have an impact on the other sources of income he has.

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

If you've served in the military but are now permanently disabled as a result of injuries or illnesses, you could be eligible for a veteran disability settlement. This settlement can assist in compensating you for medical bills, lost income and other costs that resulted from your injury or sickness. The kind of settlement you will receive will depend on whether or not your injury or illness is service-connected, what VA benefits you are eligible for, as well as the cost to treat your accident or injury.

Jim is a 58 year old Vietnam veteran, was diagnosed as having permanent disabilities due to his two years of service. He doesn't have enough work quarters to be eligible for Social Security disability benefits but there is a VA Pension benefit that offers medical care and cash dependent on financial need. He would like to be aware of how a personal injury lawsuit can affect his ability to benefit from this benefit.

The answer is contingent upon whether the settlement is a lump-sum or a structured one. Structured settlements are based on payments over a period of time instead of one single payment. The amount paid by the defendant is calculated to offset the existing VA benefits. A lump sum settlement can affect any existing VA benefits because the VA will annually evaluate and consider it to be income. In any event, if extra assets remain after the period of twelve months when the settlement has been annualized Jim may be eligible to apply again for the Pension benefit, but only if his assets fall below a certain threshold that the VA is able to agree establishes financial need.

Do I require an Attorney?

Many spouses, military personnel, and former spouses are confused about VA disability compensation and its impact on money issues in divorce cases. Some people believe that the Department of Veterans 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 can lead to financial mistakes which can have serious consequences.

It is possible to file a claim for disability benefits by yourself however, the majority of disabled veterans would require the help of a professional lawyer. A veteran's disability attorney can review your medical records to gather the necessary evidence to prove your case to the VA. The lawyer can also file any appeals that you may need in order to get the benefits you deserve.

Most VA disability lawyers do not charge for consultations. The government also pays the lawyer directly from your payment of retroactive benefits. This is an advantage of the Equal Access to Justice Act. Your fee agreement should clearly specify the proportion of retroactive benefits that will be paid to your lawyer. A fee agreement could say that, for instance, the government would pay the attorney up 20 percent of retroactive benefits. Any additional amounts are your responsibility.

Can I Garnish My VA Benefits?

If a disabled veteran receives compensation from the VA, it comes in the form of monthly payments. The purpose of the payments is to help offset the effects of disability, illness, or Veterans Disability Settlement injuries sustained during or aggravated due to a veteran's military service. Like other income sources, benefits for veterans with disabilities are subject to garnishment.

Garnishment is a legal process which allows a court require an employer or government agency to omit funds from the paycheck of a person who owes money and transfer them directly to the creditor. In the case of a divorce, garnishment may be used to pay spousal maintenance or child support.

However, there are certain circumstances where a veteran's disability benefits are able to be repaid. The most frequent is the veteran who renounced his military retirement to receive disability compensation. In these scenarios, the portion of pension that is allocated to disability pay can also be garnished to fulfill the family support obligations.

In other cases, a veteran’s benefits can also be seized to pay medical bills or federal student loans that are past due. In these situations the court may be able to go straight to the VA to obtain the necessary information. A disabled veteran should seek out an experienced attorney to secure their disability benefits. This will help them avoid having to rely on payday loans or private loans. lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be an enormous help for veterans disability legal and their families, but they come with their own set of complications. For example when a veteran is divorced and is awarded an VA disability settlement, they should be aware of what effect this will have on their benefits.

One of the major issues in this context is whether disability payments are considered to be divisible assets in divorce. This question has been answered in two ways. A Colorado court of appeals decision found that VA disability payments were not property and could not be divided this way. The U.S. Supreme Court ruled in Howell that garnishing a veteran’s VA disability payments for Alimony was against the USFSPA.

Another concern that is related to this subject is how disability benefits are treated in the context of child maintenance and support. The USFSPA and the Supreme Court both forbid states from counting disability benefits as income for these purposes. Some states have an alternative approach. For instance, Colorado adds up all sources of income to determine the amount in support a spouse needs and then pluses up the disability payments to take account that they are tax free.

It is also important for veterans disability case to know how their disability benefits will be affected when they get divorced and how their spouses' ex-spouses could take advantage of their benefits. By being aware of these issues, veterans disability lawsuit can safeguard their income and avoid unwanted consequences.