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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 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. However, it will have an impact on the other sources of income he has.

Can I get compensation for an Accident?

You could be eligible for a settlement in the event that you were a soldier but are now permanently disabled as a result of injuries or illnesses. This settlement will allow you to receive compensation for your medical bills, lost wages and other expenses related to your injury or illness. The type of settlement you can get will depend on whether the health condition is non-service connected, which VA benefits you qualify for, and what your accident or injury will cost to treat.

Jim who is a 58-year old Vietnam veteran, was diagnosed as having permanent disabilities as a result of his two years of service. He doesn't have enough work space to be eligible for Social Security Disability benefits, however, he is able to claim an VA Pension that offers free medical treatment and cash dependent on the amount of money he needs. He wants to learn how a personal injury lawsuit will affect his eligibility to get this benefit.

The answer is dependent on whether the settlement is in the form of an unintentional lump sum or a structured settlement. Structured settlements require the payment of over time instead of a single payment. The amount that defendant pays is calculated to offset the existing VA benefits. A lump sum settlement will affect any existing VA benefits because the VA will annually evaluate and consider it as income. In any case, if there are excess assets remain after the 12 month period when the settlement is annualized Jim could reapply 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 require an Attorney?

Many spouses, military personnel and former spouses are concerned about VA disability payments and their effect on financial issues during divorce. Some people believe, among other things, that the Department of Veterans Affairs compensation payments can be split as the military retirement in divorce cases or that they're "off limits" in calculating child support and Alimony. These misconceptions could lead to financial mistakes that can have grave consequences.

It is possible to submit a claim for disability benefits on your own However, most disabled veterans will require the help of a skilled lawyer. A veteran's disability lawyer who is experienced can examine your medical documents and gather the required evidence to support your argument to the VA. The lawyer can also help to submit any appeals you require to receive the benefits you're entitled to.

Most VA disability lawyers do not charge for consultations. Additionally the lawyer will usually be paid by the government directly from your award of retroactive past-due benefits. This is an advantage of the Equal Access to Justice Act. The fee agreement should clearly specify the proportion of retroactive benefits that will be paid to your lawyer. For instance, a fee agreement can state that the government will pay the attorney up to 20% of the retroactive benefits or award. You are responsible for any additional amount.

Can I Garnish My VA Benefits?

The VA provides monthly compensation to disabled veterans. The purpose of the payments is to help offset the consequences of illnesses, disabilities or injuries incurred during or aggravated by a veteran's military service. The benefits for veterans disability law firms' disability are subject to garnishment, just like other incomes.

Garnishment permits a court order that an employer or government agency withhold cash from the pay of an individual who owes an amount and then pay it directly to a creditor. In the event of divorce, garnishment can be used to pay spousal support or child support.

There are a few situations in which a veteran's disability benefits could be repaid. The most common situation involves those who have renounced their military retirement in order to receive disability compensation. In these cases the amount of pension apportioned to disability pay can be garnished for family support obligations.

In other circumstances, veteran's benefit may be garnished in order to cover medical expenses or federal student loans that are over due. In these cases a judge can refer a case directly to the VA to obtain the information they need. It is crucial for a disabled veteran to find a competent attorney to ensure that their disability benefits aren't being snatched away. This can stop them from having to rely on payday lenders or 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 also come with specific complications. If a person divorces and receives a VA settlement it is important to know what this will do to their benefits.

One of the major issues in this context is whether or not disability payments count as divisible assets in divorce. This issue has been settled in a couple of ways. A Colorado court of appeals decision determined that VA disability payments were not property and could not be divided this way. The other way is by an U.S. Supreme Court ruling in Howell that ruled that garnishing the veteran's VA disability payments to pay an alimony payment is a violation of the Uniformed Services Former Spouses Protection Act (USFSPA).

Another concern that is related to this subject is how disability benefits are interpreted for purposes of child maintenance and support. Both the USFSPA and the Supreme Court, prohibit states from claiming disability benefits as income. However, certain states have adopted a different approach. Colorado is one example. It takes all income sources together to determine the amount needed to provide for a spouse. Colorado then adds disability payments in order to take into account their tax-free status.

Finally, it is important for veterans to understand how their disability benefits will be affected if they get divorced and how their ex-spouses may garnish their compensation. If they are aware of these questions, veterans disability lawsuit can guard their compensation and avoid unintended consequences.