How a Veterans Disability Settlement Can Affect a Divorce Case

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

He wants to know how the verdict of a jury will affect his VA benefits. It won't. But it will have an impact on his other sources of income.

Can I get compensation in the event of an accident?

You could be eligible for a settlement if have served in the military, but are now permanently disabled because of injuries or illnesses. This settlement will allow you to get compensation for medical bills, lawsuit lost wages and other costs resulting from your injury or illness. The type of settlement you'll get will depend on whether the health condition is non-service connected, which VA benefits you qualify for, as well as the amount your accident or injury will cost to treat.

Jim, a 58 year old Vietnam veteran was diagnosed with permanent disabilities as a result of his two years of service. He doesn't have enough space for work to be eligible for Social Security Disability benefits, but he has a VA Pension that provides cash and medical treatment for free dependent on the amount of money he needs. He would like to be aware of how a personal injury lawsuit could affect his eligibility to benefit from this benefit.

The answer is contingent upon whether the settlement is in the form of either a lump sum or structured settlement. Structured settlements require installments over time instead of one single payment. The amount that defendant pays is calculated to offset existing VA benefits. In contrast, a lump sum payout is likely to affect any existing benefits because the VA considers it income and will annualize it. If Jim has surplus assets after the settlement is annualized then he is eligible to receive the Pension benefit. However the assets must be below a threshold the VA has agreed establishes financial necessity.

Do I require an attorney?

Many service members, spouses and former spouses are confused about VA disability compensation and the impact it has on the financial aspects of divorce cases. Some people think, for instance, that Department of Veterans Affairs compensation payments are split like the military retirement in a divorce case or that they're "off limits" in calculating child support and Alimony. These misconceptions could lead to grave financial errors.

While it is possible to file an initial claim for disability benefits on your own, many disabled veterans benefit from the assistance of a professional attorney. A skilled veteran's disability lawyer will examine your medical records and gather all the necessary evidence needed to build a strong 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. In addition that the lawyer will normally be paid by the government directly from your retroactive past due benefits. This is an advantage of the Equal Access to Justice Act. The percentage of retroactive past-due benefits that your lawyer will receive should be outlined in your fee agreement. A fee agreement may stipulate that, for example, the government would pay the attorney 20% of retroactive benefits. You will be accountable for any additional amount.

Can I Garnish My VA Benefits?

The VA provides monthly compensation to disabled veterans. The funds are meant to compensate for the effects of diseases, injuries or disabilities that were suffered or worsened during the veteran's service. The benefits for veterans disability lawsuit' disability are subject to garnishment just like other incomes.

Garnishment can be a legal proceeding which allows a court order an employer or government agency to take money from the pay of someone who is in debt and to send them directly to the creditor. In the event of a divorce garnishment can be used for child or spousal care.

There are situations where veterans' benefits could be repaid. Most often, it is the case of a veteran who renounced his military retirement in order to receive disability compensation. In these instances the pension portion that is devoted to disability payments can be garnished in order to meet family support obligations.

In other cases, a veteran’s benefits can also be garnished in order to pay for medical expenses or federal student loans that are over due. In these cases, a court can go directly to the VA to obtain the information they need. A disabled veteran should employ an experienced lawyer to protect their disability benefits. This can stop them from having to rely on payday lenders or private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be an enormous help for veterans and their families, however they do come with their own set of issues. For example, if a veteran gets divorced and receives a VA disability settlement, they need to know how this could affect 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 resolved in two ways. One is through a Colorado court of appeals decision, which found that VA disability payments are not property and cannot be divided as such. Another option is an U.S. Supreme Court ruling in Howell which ruled 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 topic is how the disability benefits are treated for purposes of child maintenance and support. Both the USFSPA and the Supreme Court, prohibit states from claiming disability benefits as income. Certain states take a different approach. For instance, Colorado adds up all sources of income to determine the amount in support a spouse will need and then adds up the disability payments to take account that they are tax free.

It is also important to know the impact divorce has on their disability benefits and how their ex spouses can slash their income. By being aware of these issues, veterans can protect their income and avoid unwanted consequences.