How a Veterans Disability Settlement Can Affect a Divorce Case

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

He wants to find out if a verdict from a jury will impact his VA benefits. It won't. It will, however, affect his other sources of income.

Can I Get Compensation for an Accident?

If you've served in the military and are permanently disabled due to injuries or illnesses, you may be eligible for a veterans disability settlement. This settlement will help pay you for medical expenses, lost income and other expenses that resulted from your injury or sickness. The type of settlement you will receive will depend on whether your injury or illness is related to service, what VA benefits you are eligible for, and the cost to treat your injury or accident.

For instance, Jim is a 58-year old veteran who was diagnosed with permanent disabilities based on two years of service during the Vietnam War. He doesn't have enough work space to qualify for Social Security Disability benefits, however, he can claim a VA Pension that provides cash and medical care for free depending on the financial needs of his. He would like to find out if a personal injury settlement would affect his ability get this benefit.

The answer depends on if the settlement is a lump-sum or a structured one. Structured settlements consist of payments over a period of time, rather than one payment. The amount paid by the defendant is calculated to offset existing VA benefits. However, a lump sum payout will likely alter any existing benefits as the VA considers it a tax-deductible income and will annually increase it. In the event that there are any excess assets remain after the twelve-month period after the settlement is annually recalculated, Jim could apply again for the Pension benefit, but only if his assets fall below a threshold that the VA determines to be a financial need.

Do I need to employ an attorney?

Many spouses, members of the military, and former spouses are concerned about VA disability payments and their impact on financial issues during divorce. There are many other reasons, but some people think that the Department of Veterans Affairs' compensation payments are able to be divided like 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.

While it is possible to make an initial claim for disability benefits on your own, many disabled veterans require the assistance of an experienced attorney. A disability attorney for veterans can examine your medical records in order to gather the evidence required to present a convincing case before the VA. The lawyer can also help to file any appeals that you need to get the benefits you're entitled to.

Most VA disability lawyers do not charge for consultations. Additionally, the lawyer will generally be paid by the government directly from your award of retroactive past-due benefits. This is an advantage of the Equal Access to Justice Act. Your fee agreement should clearly define the percentage of retroactive benefits to be paid to your lawyer. A fee agreement could state that, for instance, the government would give the attorney up to 20% of retroactive benefits. You will be responsible for any additional amount.

Can I Garnish My VA Benefits?

When disabled veterans receive compensation from the VA, it comes in the form of monthly payments. The payments are intended to offset the effects of injuries, illnesses or disabilities that were sustained or worsened during the veteran's time of service. Like all incomes, veterans disability benefits can be subject to garnishment.

Garnishment is a legal process which allows a court decide that an employer or a government agency to omit funds from the pay of someone who owes money and transfer them directly to a creditor. In the event of divorce, garnishment can be used to pay child or spousal maintenance.

There are situations where veterans disability attorney' benefits could be repaid. The most common situation involves veterans who have waived their military retirement in order to claim disability compensation. In these situations, the amount of pension that is allocated to disability pay can be garnished for family support obligations.

In other cases veterans' benefits could be garnished to pay for medical expenses or past-due federal student loans. In these cases a judge can refer a case directly to the VA to obtain the information they require. It is essential for disabled veterans to retain a knowledgeable attorney to ensure that their disability benefits aren't 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 assistance to veterans and their families, however they do come with their own set of challenges. If a veteran gets divorced and receives an VA settlement and is eligible, they should be aware of the impact this could have to the benefits they receive.

In this regard one of the major issues is whether disability payments are considered assets that could be divided in a divorce. This issue has been addressed in a couple of ways. A Colorado court of appeals decision declared that VA disability payments were not property and could not be divided this way. The other way is by the U.S. Supreme Court ruling in Howell which held that garnishing the veteran's VA disability payments to pay Alimony is against the Uniformed Services Former Spouses Protection Act (USFSPA).

Another concern with this issue is the handling of disability benefits to children for support and maintenance. The USFSPA and the Supreme Court both forbid states from counting disability benefits as income for these purposes. However, some states have chosen to take a different approach. Colorado for instance, adds all sources of income together to determine the amount required to support a spouse. The state then adds disability income to account for their tax-free status.

Finally, it is important for veterans to understand how their disability compensation will be affected if they get divorced and how their spouses who divorced them can affect their compensation. By being knowledgeable about these issues, veterans can protect their income and avoid unintended consequences.