How a Veterans Disability Settlement Can Affect a Divorce Case

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

He wants to know how the jury's verdict will impact his VA benefits. The answer is that it will not. But it will have some impact on his other sources of income.

Can I Receive Compensation for an accident?

If you've been in the military and are permanently disabled because of injuries or illnesses, you could be eligible for a veteran disability settlement. This settlement can allow you to get compensation for medical bills, lost wages, and other expenses that result from your illness or injury. The type of settlement you are eligible for will depend on whether your illness or injury is related to service, what VA benefits you are eligible for, and the cost to treat your accident or injury.

For Veterans Disability example, Jim is a 58-year veteran who was diagnosed with permanent disabilities following two years of service during the Vietnam War. He doesn't have enough work quarters to be eligible for Social Security disability benefits but the VA Pension benefit, which offers medical care and cash based on financial need. He would like to know if a personal injury settlement would affect his eligibility to be eligible for this benefit.

The answer will depend on whether the settlement is a lump sum or a structured one. Structured settlements are the ones that are paid over a period of time rather than as a single payment and the amount paid by the defendant is used to offset any existing VA benefits. A lump sum settlement can affect any existing VA benefits since the VA will annualize and consider it to be income. If Jim has assets that are not used up after the settlement is annually adjusted, he can reapply to receive the Pension benefit. However the assets must be below a threshold the VA has set to establish financial necessity.

Do I need to hire an attorney?

Many spouses, military personnel, and former spouses have questions about VA disability payments and their impact on financial issues during divorce. Among other things, some people think that the Department of veterans disability lawsuits Affairs' compensation payments can be split like a pension from a military service in a divorce or that they are "off limits" in the calculation of child support and alimony. These misconceptions may lead to serious financial mistakes.

It is possible to file an application for disability benefits by yourself, but most disabled veterans will benefit from the assistance of a qualified lawyer. A veteran's disability attorney will examine your medical records in order to gather the evidence needed to prove your case to the VA. The lawyer will also be able to file any appeals you may require to obtain the benefits you are entitled to.

Furthermore, the majority of VA disability lawyers charge no fees for consultations. In addition the lawyer will typically be paid by the government directly out of your retroactive past due benefits. This is one of the benefits of the Equal Access to Justice Act. The fee agreement should clearly state the percentage of retroactive benefits that will be paid to your lawyer. For instance the fee agreement could specify that the government will pay the attorney up to 20% of the retroactive benefits or give. Any additional amounts will be your obligation.

Can I Garnish My VA Benefits?

When disabled veterans receive compensation from the VA, it comes in the form of monthly payments. These payments are designed to alleviate the effects of injuries, Veterans Disability diseases or disabilities that were suffered or aggravated by a veteran's service. Like all incomes, veterans disability benefits can be subject to garnishment.

Garnishment is a legal procedure that allows a court to require an employer or government agency to withhold funds from the paycheck of a person who is in debt and to send them directly to the creditor. In the event of a divorce garnishment may be used to pay child or spousal maintenance.

However, there are some circumstances where a veteran's disability benefits are able to be repaid. The most common scenario involves those who have renounced their military retirement in order to claim disability compensation. In these instances, the portion of the pension that is attributed to disability benefits can be garnished for family support obligations.

In other cases veterans' benefits could be garnished to pay for medical expenses or past-due federal student loans. In these situations the court may be able to direct the case to the VA to obtain the necessary information. A disabled veteran should employ an experienced lawyer to protect their disability benefits. This can help them avoid having to rely on payday loans and private loans. lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a huge help for veterans and their families, but they're not without their own set of complications. If a veteran divorces and receives a VA settlement then they must be aware of the impact this could have to the benefits they receive.

In this regard, a major question is whether or not disability benefits are considered assets that can be divided in divorce. This question has been resolved in two ways. A Colorado court of appeals ruling declared that VA disability payments were not property and could not be divided in this way. Another option is an U.S. Supreme Court ruling in Howell which ruled that garnishing the veteran's VA disability payments to pay the payment of alimony is in violation of the Uniformed Services Former Spouses Protection Act (USFSPA).

Another concern with this topic is how the disability benefits are interpreted to determine child support and maintenance. The USFSPA and the Supreme Court both forbid states from claiming disability benefits as income for these purposes. Certain states employ an alternative approach. Colorado for instance adds all income sources together to determine the amount needed to support a spouse. The state then adds disability income in order to account for their tax-free status.

Additionally, it is essential for veterans to know how their disability compensation will be affected if they get divorced and how their spouses' ex-spouses could garnish their compensation. If they are aware of these issues, veterans disability law firms can protect their income and avoid unintended consequences.