How a Veterans Disability Settlement Can Affect a Divorce Case

Jim's 58 year old client is permanently disabled as a result of his time in the military. He gets a monthly pension from the Department of Veterans Affairs.

He would like to know if a jury verdict will affect his VA benefits. It won't. But it will have an impact on the other sources of income he has.

Can I receive compensation for an accident?

If you've been in the military and are permanently disabled due to injuries or illnesses, you may be eligible for a veteran disability settlement. This settlement could help you get compensation for medical bills, lost wages and other expenses related to your injury or illness. The kind of settlement you can get depends on whether or not your health condition is non-service connected, the VA benefits you qualify for, and how much your accident or injury will cost to treat.

For example, Jim is a 58-year veteran who was diagnosed with permanent disabilities following two years of service in the Vietnam War. He does not have enough working space to qualify for Social Security disability benefits but there is a VA Pension benefit that provides medical care and cash in accordance with financial need. He wants to know if a personal injury settlement would affect his eligibility to be eligible for this benefit.

The answer is dependent on whether the settlement is a lump sum or a structured one. Structured settlements involve installments over time, rather than one payment. The amount that defendant pays is calculated to offset the existing VA benefits. A lump sum payment will likely affect existing benefits since the VA considers it a tax-deductible income and will annually increase it. In the event that there are any excess assets are left after the 12 month period when the settlement is annualized, Jim could reapply for the Pension benefit but only if his assets are below a threshold that the VA agrees establishes financial need.

Do I need to employ an attorney?

Many spouses, military personnel and former spouses are concerned about VA disability benefits and their impact on money issues in divorce. In addition, some people think 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 calculation of child support and alimony. These misconceptions could lead serious financial mistakes.

It is possible to file an application for disability benefits yourself However, most disabled kingston veterans disability lawsuit would require the help of a skilled lawyer. A veteran's disability lawyer who is experienced will examine your medical records and gather all the necessary evidence to support your case to the VA. The lawyer can also file any appeals that you might require to receive the benefits you deserve.

The majority of VA disability lawyers don't charge for consultations. The government will also pay the lawyer directly from your award of retroactive benefits. This is an advantage of the Equal Access to Justice Act. The amount of retroactive past-due benefits your lawyer will receive should be clearly outlined in your fee agreement. A fee agreement may stipulate, for example, that the government will give the attorney up to 20% of retroactive benefits. You are responsible for any additional amounts.

Can I Garnish My VA Benefits?

The VA pays monthly compensation to disabled veterans. The funds are intended to compensate for some of the consequences of illnesses, disabilities or injuries incurred during or aggravated by a veteran's military service. The benefits for veterans' disability are subject to garnishment just like any other income.

Garnishment lets a court order that an employer or government agency stop cash from the pay of an individual who owes a debt and send it directly to a creditor. In the event of divorce, garnishment may be used to pay child or spousal care.

There are some situations where veterans' benefits could be garnished. The most frequent scenario involves those who have renounced their military retirement in order to receive disability compensation. In these cases the pension portion that is devoted to disability pay can also be garnished to fulfill the family support obligations.

In other instances, a veteran's benefits may also be seized in order to pay for medical expenses or federal student loans that are over due. In these cases a judge can refer a case directly to the VA for the information they require. The disabled veteran should consult an experienced lawyer to protect their disability benefits. This will help them avoid having to depend on private loans and payday lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a major help for veterans and their families, however they're not without their own set-of complications. If a veteran divorces and receives an VA settlement and is eligible, they should be aware of the impact this could have to the benefits they receive.

A major issue in this regard is whether or not the disability benefits are considered divisible assets in divorce. This question has been answered in two ways. One method is a Colorado court of appeals decision, which found that VA disability payments are not property, Vimeo and therefore cannot be divided as such. Another method is an U.S. Supreme Court ruling in Howell that held that garnishing a veteran's VA disability benefits to pay Alimony is against the Uniformed Services Former Spouses Protection Act (USFSPA).

Another concern with this subject is how disability benefits are interpreted in the context of child support and maintenance. The USFSPA and the Supreme Court both forbid states from counting disability payments as income for these purposes. Certain states use a different approach. For instance, Colorado adds up all sources of income to determine how much in support a spouse requires and then adds the disability payments to take the fact that they are tax-free.

Additionally, it is essential for veterans to be aware of how their disability benefits will be affected if they become divorced and how their spouses' ex-spouses could garnish their compensation. By being knowledgeable about these questions, veterans can guard their compensation and avoid unwanted consequences.