How a Veterans Disability Settlement Can Affect a Divorce Case

Jim's client, a 58-year-old man is permanently disabled due to his military service. He gets a monthly pension from the Department of veterans Disability law firms Affairs.

He would like to know how the verdict of a jury will impact his VA benefits. It won't. However, it could have an impact on the other sources of income he has.

Can I claim compensation in the event of an accident?

If you have served in the military and are now permanently disabled due to injuries or illnesses, you could be eligible for a veterans disability settlement. This settlement will 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 can get depends on whether or not your condition is service-connected or not connected, the VA benefits you qualify for, as well as the amount your accident or injury will cost to treat.

For instance, Jim is a 58-year veteran who was diagnosed with permanent disabilities from two years of service during the Vietnam War. He hasn't got enough work space to qualify for Social Security disability benefits but He does have a VA Pension benefit, which offers cash and free medical care dependent on financial need. He would like to find out if a personal injury settlement would affect his eligibility to receive this benefit.

The answer is dependent on whether the settlement is a lump-sum or a structured one. Structured settlements are payments made over a time period rather than in a single payment and the amount received by the defendant is used to offset any existing VA benefits. A lump sum payment can impact any existing VA benefits because the VA will annually assess and count it to be income. In either case, if excess assets remain after the 12 month period when the settlement is annualized Jim may be eligible to apply again for the Pension benefit, but only if his assets fall lower than a threshold with which the VA is able to agree establishes financial need.

Do I require an Attorney?

Many spouses, service members, and former spouses have questions about VA disability payments and their effect on financial issues in divorce. Some people believe, among other things, that the Department of Veterans Affairs compensation payments can be divided like a military retirement in divorce cases or that they're "off limits" when calculating child support and Alimony. These misconceptions can result in financial mistakes which can have serious consequences.

It is possible to submit an application for disability benefits on your own however, the majority of disabled veterans would require the help of a qualified lawyer. A veteran's disability lawyer who is experienced can examine your medical records and gather all the necessary evidence to present a strong case to the VA. The lawyer can also file any appeals that you might require to receive the benefits you are entitled to.

The majority of VA disability lawyers do not charge for consultations. The government will also pay the lawyer directly from your benefit of retroactive benefits. This is a benefit of the Equal Access to Justice Act. The proportion of retroactive past-due benefits that your lawyer will receive should be outlined in your fee agreement. For example an agreement on fees could specify that the government will pay the lawyer up to 20% of the retroactive benefits or give. You will be accountable for any additional costs.

Can I Garnish My VA Benefits?

The VA provides monthly compensation to disabled veterans. The funds are intended to help offset the effects of disability, illness, or injuries sustained during or aggravated during a veteran's military service. The benefits for veterans disability lawyer with disabilities are subject to garnishment, as is any other income.

Garnishment is a court-ordered procedure that an employer or government agency deduct money from the wages of a person who owes the debt and pay it directly to a creditor. In the case of a divorce, garnishment may be used to pay for spousal support or child support.

There are some situations where the benefits of a veteran could be repaid. Most often, it is the case of a veteran who has renounced his military retirement in order to receive disability compensation. In these instances, the amount of pension apportioned to disability pay may be garnished for family support obligations.

In other situations veterans' benefits could be seized to pay medical expenses or past-due federal student loans. In these situations the court could go directly to the VA for the information they require. It is crucial for disabled veterans to find a competent attorney to ensure that their disability benefits are not garnished. This will prevent them from having to rely on payday lenders and private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a major assistance to veterans and their families, however they do come with their own set of challenges. For example in the event that a veteran gets divorced and is awarded a VA disability settlement, they should know what effect this will have on their benefits.

A major issue in this context is whether or not the disability benefits are considered divisible assets in a divorce. This question has been addressed in two ways. A Colorado court of appeals ruling found that VA disability payments were not property and could not be divided in this way. The U.S. Supreme Court ruled in Howell that garnishing a veteran's VA disability benefits for Alimony was against the USFSPA.

Another concern that is related to this issue is how disability benefits are treated for purposes of child support and maintenance. The USFSPA and the Supreme Court both forbid states from counting disability benefits as income to be used for this purpose. However, some states have adopted different approaches. Colorado is one example. It adds all sources of income together to determine the amount needed to support a spouse. It then adds disability income in order to account for their tax-free status.

It is also vital to know the impact divorce has on their disability benefits and how their ex spouses can slash their income. By being informed about these issues, vets can safeguard their benefits as well as avoid the unintended consequences.