How a Veterans Disability Settlement Can Affect a Divorce Case

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

He wants to know if a jury award will impact his VA benefits. The answer is that it will not. However, it could have an impact on the other sources of income he has.

Do I have the right to receive compensation for an Accident?

You may be eligible for a settlement in the event that you have served in the military, but are now permanently disabled because of injuries or illnesses. 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 receive depends on whether your condition is service-connected or not connected, what VA benefits you qualify for, and the amount your accident or injury will cost to treat.

Jim, a 58-year veteran of the Vietnam war, was diagnosed as having permanent disabilities as a result of his two years of service. He isn't in a position to have enough space for work to qualify for Social Security Disability benefits, however, he can claim the VA Pension, which provides cash and medical care for free according to his financial need. He wants to be aware of whether a personal injury settlement could affect his ability to be eligible for this benefit.

The answer is contingent upon whether the settlement is in the form of either a lump sum or structured settlement. Structured settlements consist of the payment of over time instead of one lump sum payment. The amount that defendant pays is calculated to offset existing VA benefits. A lump sum payment can impact any existing VA benefits as the VA will annualize and consider it as income. In the event that there are any excess assets are left after the twelve month period when the settlement is annualized, Jim may be eligible to apply again for the pension benefit, but only if his assets are less than a minimum threshold that the VA is able to agree establishes financial need.

Do I need to hire an attorney?

Many service members, spouses and former spouses have concerns about VA disability payments and their impact on money issues during a divorce. In addition, some people think that the Department of Veterans Affairs' compensation payments can be divided like a military pension divorce or are "off limits" in calculation of child support and alimony. These misconceptions could lead to serious financial mistakes.

It is possible to submit an application for disability benefits by yourself However, most disabled veterans will require the help of a qualified lawyer. A skilled veteran's disability lawyer can examine your medical documents and gather the required evidence needed to build a strong case at the VA. The lawyer can also file any appeals that you might require to get the benefits you deserve.

Moreover, most VA disability lawyers do not charge fees for consultations. The government also pays the lawyer directly from the benefit of retroactive benefits. This is an advantage of the Equal Access to Justice Act. Your fee agreement should clearly state the proportion of retroactive benefits that will be paid to your lawyer. For example the fee agreement could state that the government will pay the lawyer up to 20% of retroactive benefits or provide. Any additional amounts will be your obligation.

Can I Garnish My VA Benefits?

The VA pays a monthly amount of compensation to disabled veterans. The funds are intended to help offset the effects of disabilities, diseases or injuries sustained or aggravated by the veteran's military service. The veterans disability benefits are subject to garnishment just like other incomes.

Garnishment is a legal action that allows a judge to make an order to an employer or government agency to deduct funds from the pay of someone who owes money and send them directly to a creditor. In the case of a divorce, garnishment may be used to pay for spousal support or child support.

There are certain situations where the benefits of a veteran could be encashable. Most often, it is the case of a veteran who waived his military retirement in order to receive disability compensation. In these scenarios the amount of pension that is devoted to disability pay can also be garnished to pay for family support obligations.

In other instances, a veteran's benefits could be seized to pay for medical expenses or federal student loans that are over due. In these cases the court might be able to the VA to obtain the necessary information. A disabled veteran should seek out an experienced attorney to secure their disability benefits. 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 benefit for veterans and their families, but they do come with their own set of complications. If a veteran gets divorced and receives an VA settlement it is important to be aware of what this might do to their benefits.

In this case, a major question is whether or veterans disability law firm not disability benefits are considered assets that could be divided in a divorce. This question has been answered in two ways. A Colorado court of appeals decision found that VA disability payments were not property and therefore could not be divided in this manner. 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 concern with this topic is the treatment of disability benefits for child maintenance and support. Both the USFSPA, and the Supreme Court, prohibit states from counting disability benefits as income. Certain states employ a different approach. For instance, Colorado adds up all sources of income to determine the amount in support a spouse is entitled to and then adds up the disability payments to take into the fact that they are tax-free.

It is also crucial that veterans are aware of the impact divorce has on their disability compensation and how ex-spouses can slash their income. By being aware of these issues, vets can protect their income as well as avoid unintended consequences.