How a Veterans Disability Settlement Can Affect a Divorce Case

Jim's 58-year-old client is permanently disabled because of his time in the military. He receives a monthly pension benefit from the Department of Veterans Affairs.

He would like to know how an award from a jury will affect his VA benefits. The answer is not. However, it will affect his other income sources.

Can I Get Compensation for an accident?

If you've served in the military and are now permanently disabled due to injuries or illnesses, you may be eligible for a veteran disability settlement. This settlement can help compensate you for medical bills, lost income and other expenses that resulted from your injury or sickness. The kind of settlement you can get depends on whether or not your condition is service-connected or not connected, what VA benefits you are eligible 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 because of his two years of service. He hasn't got enough work space to qualify for Social Security disability benefits but there is a VA Pension benefit that provides medical care and cash that is based on financial need. He would like to be aware of how a personal injury lawsuit could affect his eligibility to be eligible for this benefit.

The answer will depend on whether the settlement is in the form of an unintentional lump sum or a structured settlement. Structured settlements consist of payments over a period of time instead of one single payment. The amount that defendant pays is calculated to offset existing VA benefits. A lump sum payout is likely to impact any benefits already in place because the VA considers it income and will annualize it. If Jim has extra assets after the settlement is annualized the applicant can apply again to be eligible for the pension benefit. However his assets must be under a limit that the VA has agreed establishes financial necessity.

Do I require an Attorney?

Many spouses, members of the military and former spouses have concerns about VA disability benefits and their impact on financial issues during divorce. Some people think that the Department of Veterans Affairs' compensation payments are able to be divided like a military pension a divorce or that they are "off limits" when it comes to calculation of child support and alimony. These misconceptions could lead serious financial errors.

It is possible to file a claim for disability benefits on your own However, most disabled veterans disability lawsuits will require the help from a competent lawyer. An experienced veteran's disability lawyer will examine your medical records and gather all the necessary evidence to make a convincing case to the VA. The lawyer can also file any appeals that you might need to receive the benefits you are entitled to.

Most VA disability lawyers do not charge for consultations. Additionally the lawyer will typically be paid by the government directly out of your award of retroactive past-due benefits. This is a benefit of the Equal Access to Justice Act. The amount of retroactive past-due benefits that your lawyer will be paid should be clearly outlined in your fee agreement. A fee agreement could say, for example, that the government will provide the attorney with 20 percent of retroactive benefits. You will be responsible for any additional amount.

Can I Garnish My VA Benefits?

When a disabled veteran receives compensation from the VA the compensation is paid in the form of monthly payments. The payments are meant to help offset the effects of disability, illness or injuries incurred during or Veterans Disability aggravated by the veteran's military service. Like other income sources, veterans disability benefits can be subject to garnishment.

Garnishment permits a court order that an employer or government agency withhold cash from the pay of a person who is in the process of paying the debt and pay it directly to the creditor. In the case of a divorce, garnishment could be used to pay spousal support or child support.

There are a few circumstances where a veteran's disability benefits could be garnished. The most common situation involves veterans disability lawyers who have waived their military retirement in order to claim disability compensation. In these situations, the amount of pension allocated to disability payments can be garnished for family support obligations.

In other instances, a veteran's benefits may also be garnished in order to pay medical expenses or federal student loans that are over due. In these instances a court may be able to go straight to the VA to get the required information. The disabled veteran should consult an experienced attorney to secure their disability benefits. This can stop them from having to rely on payday lenders and private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements are a great help to veterans as well as their families. However they do come with specific complications. If a person divorces and receives an VA settlement, he or she should be aware of the implications to the benefits they receive.

In this regard one of the major issues is whether or not disability payments count as assets which can be divided in a divorce. This issue has been settled in a couple of ways. A Colorado court of appeals decision found that VA disability payments were not property and could not be divided in this way. Another way is through an U.S. Supreme Court ruling in Howell which held that garnishing the veteran's VA disability benefits to pay for the payment of alimony is in violation of the Uniformed Services Former Spouses Protection Act (USFSPA).

Another concern related to this issue is the handling of disability benefits to children for maintenance and support. The USFSPA and the Supreme Court both forbid states from claiming disability benefits as income to be used for this purpose. However, some states have taken the opposite approach. Colorado, for example, takes all income sources together to determine the amount needed to support a spouse. It then adds disability payments to account for their tax-free status.

It is also vital that veterans know how divorce affects their disability benefits and how their spouses who divorced can garnish their compensation. By being informed about these issues, vets can ensure their compensation as well as avoid unintended consequences.