How a Veterans Disability Settlement Can Affect a Divorce Case

Jim's 58-year-old client is permanently disabled as a result of his service in the military. He is able to receive a monthly pension from the Department of Veterans Affairs.

He would like to find out if a verdict from a jury will impact his VA benefits. It will not. However, it will have an impact on the other sources of income he has.

Can I receive compensation for an accident?

You may be eligible for a settlement if you were a soldier but are now permanently disabled as a result of injuries or illnesses. This settlement can assist in compensating you for medical bills, lost income, and other expenses that resulted from your illness or injury. The type of settlement that you are eligible for will depend on whether or not your illness or injury is service-connected, what VA benefits you are eligible for, as well as the cost to treat your injury or accident.

For example, Jim is a 58-year veteran who was diagnosed with permanent disabilities based on two years of service during the Vietnam War. He doesn't have enough work quarters to be eligible for Social Security disability benefits but there is a VA Pension benefit that offers cash and medical treatment for free dependent on financial need. He would like to find out if a personal injury settlement would affect his ability receive this benefit.

The answer is contingent upon whether the settlement is in the form of either a lump sum or structured settlement. Structured settlements are settlements that are paid over a time period instead of in one payment, and the amount paid by the defendant is calculated to offset any existing VA benefits. However, a lump sum payout is likely to affect any existing benefits because the VA considers it as income and will increase it. If Jim has extra assets after the settlement has been annualized and he wants to reapply, he will be eligible for the pension benefit. However, his assets must be below a threshold the VA has set that establishes financial necessity.

Do I require an attorney?

Many spouses, service members and former spouses have concerns about VA disability benefits and their impact on financial issues in divorce. Some people believe, Veterans Disability for instance, that the Department of Veterans Affairs compensation payments can be divided like a military retirement in divorce cases, or that they're "off limits" when calculating child support and Alimony. These misconceptions may lead to serious financial errors.

It is possible to file an application for disability benefits on your own However, most disabled veterans disability lawsuit would require the help of a skilled lawyer. An experienced veteran's disability lawyer will review your medical records and gather all the necessary evidence to present a strong case at the VA. The lawyer can also help to file any appeals you may require to secure the benefits you deserve.

The majority of VA disability lawyers do not charge for consultations. Additionally that the lawyer will normally be paid by the government directly out of the 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 be paid should be clearly outlined in your fee agreement. For instance an agreement on fees could specify that the government will pay the lawyer up to 20% of retroactive benefits or give. You will be accountable for any additional amounts.

Can I Garnish My VA Benefits?

If a disabled veteran is granted compensation from the VA it is received in the form of monthly payments. The funds are intended to offset some of the consequences of illnesses, disabilities or injuries incurred during or aggravated due to a veteran's military service. Like other income sources, veterans disability benefits can be subject to garnishment.

Garnishment allows a court order that an employer or a government agency withhold funds from the paycheck of a person who is in the process of paying an amount and then pay it directly to a creditor. In the event of divorce, garnishment could be used to pay spousal support or child support.

However, there are certain circumstances where a veteran's disability benefits may be repaid. The most frequent is the veteran who has renounced his retirement from the military in order to receive disability compensation. In these cases, the portion of the pension that is allocated to disability pay can be garnished for family support obligations.

In other circumstances, veteran's benefits may also be seized to pay for medical expenses or federal student loans that are over due. In these cases the court could go directly to the VA to obtain the information they need. A disabled veteran should hire an experienced attorney to safeguard their disability benefits. This will prevent them from having to rely on payday loans or 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 also come with certain complications. If a veteran divorces and receives a VA settlement then they must know what this will do to the benefits they receive.

A major issue in this regard is whether or not disability payments are considered to be divisible assets in divorce. This issue has been addressed in a couple of ways. A Colorado court of appeals decision determined that VA disability payments were not property and therefore could not be divided in this way. The U.S. Supreme Court ruled in Howell that garnishing a veteran's VA disability payments to pay alimony was a violation of USFSPA.

Another issue related to this issue 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 benefits as income for these purposes. Certain states take an alternative approach. For instance, Colorado adds up all sources of income to determine the amount in support a spouse needs and then adds up the disability benefits to take into account that they are tax-free.

It is also crucial to know how divorce affects their disability compensation and how their ex spouses can garnish their compensation. By being informed about these issues, vets can ensure their compensation and avoid the unintended consequences.