How a Veterans Disability Settlement Can Affect a Divorce Case

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

He wants to know if a jury verdict will affect his VA benefits. It will not. It will, however, have an impact on the other sources of income he earns.

Can I receive compensation in the event of an accident?

If you've served in the military and are now permanently disabled because of injuries or illnesses, you may be eligible for a veteran disability settlement. This settlement could help you get compensation for medical bills, lost wages and other expenses resulting from your illness or injury. The kind of settlement you are eligible for will depend on whether your illness or injury is service-related, what VA benefits you are eligible to receive, and the amount to treat your injury or accident.

For instance, Jim is a 58-year old veteran who was diagnosed with permanent disabilities following two years of service in the Vietnam War. He does not have enough working space to qualify for Social Security disability benefits but the VA Pension benefit that offers medical care and cash based on financial need. He wants to know if a personal injury settlement could affect his ability to receive this benefit.

The answer is contingent upon whether the settlement is in the form of a lump sum or a structured settlement. Structured settlements are based on installments over time rather than a single payment. The amount paid by defendant is calculated to offset the existing VA benefits. However, a lump sum payment will likely affect existing benefits since the VA considers it a tax-deductible income and will annually increase it. If Jim has extra assets after the settlement is annually adjusted and he wants to reapply, veterans Disability law firms he will receive the Pension benefit. However, his assets must be below a threshold the VA has agreed establishes financial necessity.

Do I need to hire an attorney?

Many spouses, military personnel, and former spouses are concerned about VA disability benefits and their impact on financial issues during divorce. Some people think, for instance, that Department of Veterans Affairs compensation payments can be split as the military retirement in divorce cases or that they're "off limits" when calculating child support and Alimony. These misconceptions can result in financial mistakes that have serious consequences.

It is possible to file an application for disability benefits yourself however, the majority of disabled veterans will require the help of a qualified lawyer. A veteran's disability lawyer who is experienced can examine your medical documents and gather the required evidence to present a strong case to the VA. The lawyer can also file any appeals you may require to get the benefits you deserve.

The majority of VA disability lawyers don't charge for Veterans Disability law firms consultations. Additionally the lawyer will usually be paid by the government directly from your retroactive past-due benefits. This is a benefit of the Equal Access to Justice Act. Your fee agreement should specify clearly the proportion of retroactive benefits to be paid to your lawyer. A fee agreement could stipulate that, for example, the government will provide the attorney with 20% of retroactive benefits. The attorney is responsible for any additional amounts.

Can I Garnish My VA Benefits?

When a disabled veteran receives compensation from the VA it is received in the form of monthly payments. The funds are meant to help offset the impact of illnesses, injuries or disabilities that were sustained or aggravated during a veteran's service. The veterans disability benefits are subject to garnishment just like any other income.

Garnishment is a legal action that allows a court to order an employer or government agency to omit funds from the pay of an employee who owes money and transfer them directly to an individual creditor. In the event of divorce, garnishment may be used to pay child or spousal maintenance.

However, there are some situations where disability benefits may be refunded. The most common scenario is that of a veteran who waived his retirement from the military in order to receive disability compensation. In these situations the pension portion that is devoted to disability payments can be garnished in order to pay for family support obligations.

In other circumstances, a veteran's benefits can be garnished to pay for medical expenses or past due federal student loans. In these situations a court may be able to the VA to obtain the necessary information. It is crucial for disabled veterans disability law firms to hire a knowledgeable lawyer to ensure that their disability benefits aren't garnished. This will prevent them from being forced to rely on payday and private loan lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a huge assistance to veterans and their families, however they do come with their own set of issues. For instance when a veteran is divorced and receives an VA disability settlement, they must be aware of how this will affect their benefits.

In this case, a major question is whether or not disability benefits are considered assets that could be divided in divorce. This question has been addressed in two ways. One option is a Colorado court of appeals decision which concluded that VA disability payments are not property and can't be divided as such. The other way is by a U.S. Supreme Court ruling in Howell which ruled that garnishing a veteran's VA disability payments to pay for Alimony is against the Uniformed Services Former Spouses Protection Act (USFSPA).

Another concern related to this issue is the treatment of disability benefits to children for support and maintenance. The USFSPA and the Supreme Court both forbid states from counting disability benefits as income for these purposes. Certain states take different methods. Colorado for instance adds all income sources together to determine the amount needed to support a spouse. It then adds disability benefits to reflect their tax-free status.

Additionally, it is essential that veterans understand how their disability benefits will be affected when they get divorced and how their ex-spouses may affect their compensation. By being knowledgeable about these issues, veterans disability lawyers can ensure the security of their benefits and avoid unintended consequences.