How a Veterans Disability Settlement Can Affect a Divorce Case

Jim's client, a 58 year old man, is permanently disabled as a result of his military service. He gets a monthly pension from the Department of veterans disability attorney Affairs.

He wants to know if a jury award will impact his VA benefits. It won't. But it will have some impact on his other sources of income.

Can I get compensation for an accident?

If you've served in the military, and are permanently disabled because of injuries or illnesses, you could be eligible for a veteran disability settlement. This settlement will allow you to receive compensation for your medical bills, lost wages, and other costs resulting from your illness or injury. The kind of settlement you'll be able to get depends on whether or not your health condition is non-service connected, what VA benefits you qualify for, and the amount your accident or injury will cost to treat.

Jim, a 58-year old Vietnam veteran, was diagnosed as having permanent disabilities due to his two years of service. Jim does not have enough work space to qualify for Veterans Disability Social Security Disability benefits, however, he can claim a VA Pension that provides free medical care and cash according to his financial need. He wants to understand how a personal injury lawsuit will affect his ability to benefit from this benefit.

The answer will depend on whether the settlement is a lump sum or a structured one. Structured settlements require installments over time, rather than 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 extra assets after the settlement has been annualized and he wants to reapply, he will be eligible for the pension benefit. However the assets must be under a limit that the VA has agreed establishes financial necessity.

Do I really need to hire an Attorney?

Many spouses, military personnel, and former spouses are confused about VA disability compensation and the impact it has on money issues in divorce cases. In addition, some people believe that the Department of Veterans Affairs' compensation payments can be divided like a military pension in a divorce or that they are "off limits" in calculation of child support and alimony. These misconceptions can lead to financial mistakes that have serious consequences.

It is possible to file a claim for disability benefits on your own However, most disabled veterans would require the help of a qualified lawyer. A qualified veteran's disability lawyer will review your medical documents and gather the necessary evidence to present a strong argument to the VA. The lawyer will also be able to file any appeals you may need to get the benefits you deserve.

The majority of VA disability lawyers do not charge for consultations. In addition that the lawyer will normally be paid by the government directly from the retroactive past-due benefits. This is one of the benefits of the Equal Access to Justice Act. The fee agreement should specify clearly the proportion of retroactive benefits to be paid to your lawyer. For instance, a fee agreement can provide that the government can pay the attorney up to 20% of retroactive benefits or pay. You will be accountable for any additional amount.

Can I Garnish My VA Benefits?

When a disabled veteran receives compensation from the VA it is in the form of monthly payments. The funds are intended to offset some of the effects of disabilities, diseases or injuries sustained or aggravated during a veteran's military service. As with all income, veterans disability benefits can be subject to garnishment.

Garnishment is a legal procedure that permits a court to decide that an employer or a government agency to withhold funds from the pay of someone who owes money and transfer them directly to the creditor. In the event of divorce, garnishment may be used to pay child or veterans Disability spousal maintenance.

There are certain situations where the benefits of a veteran could be garnished. Most often, it is the case of a veteran who has renounced his retirement from the military in order to receive disability compensation. In these instances the part of pension that is devoted to disability compensation can be garnished in order to cover the obligations of family support.

In other circumstances the benefits of a veteran can be garnished to pay for medical expenses or past due federal student loans. In these situations, a court may be able to go straight to the VA to obtain the necessary information. It is vital for a disabled veteran to find a competent lawyer to ensure that their disability benefits aren't garnished. This will stop them from relying on payday lenders and private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be an enormous assistance to veterans and their families, however they come with their own set of challenges. If a person divorces and receives a VA settlement and is eligible, they should be aware of the impact this could have to the benefits they receive.

In this regard the most important question is whether disability benefits are considered assets that could be divided during a divorce. This question has been resolved in two ways. A Colorado court of appeals ruling decided that VA disability payments were not property and therefore could not be divided this way. The U.S. Supreme Court ruled in Howell that garnishing a veteran’s VA disability payments to pay Alimony was against the USFSPA.

Another concern related to this topic is how the disability benefits are treated in the context of child maintenance and support. Both the USFSPA, and the Supreme Court, prohibit states from claiming disability benefits as income. Some states have different methods. For instance, Colorado adds up all sources of income to determine the amount in support a spouse requires and then adds up the disability payments to take into account that they are tax-free.

In the end, it is crucial for veterans to be aware of how their disability compensation will be affected when they get divorced and how their spouses who divorced them can affect their compensation. By being knowledgeable about these issues, veterans can protect their earnings and avoid any unwanted consequences.