How a Veterans Disability Settlement Can Affect a Divorce Case

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

He wants to know if a verdict of a juror will impact his VA benefits. It will not. However, it will have an impact on his other sources of income.

Can I Receive Compensation in the event of an accident?

You may be eligible to receive a settlement if you were a soldier but are now permanently disabled as a result of injuries or illnesses. This settlement could help you get compensation for medical expenses, lost wages, and other expenses related to your illness or injury. The kind of settlement you'll receive depends on whether your condition is service-connected or non-service connected, the VA benefits you are eligible for, and how much your accident or injury will cost to treat.

For instance, Jim is a 58-year old veteran who was diagnosed with permanent disabilities after two years of service in the Vietnam War. He doesn't have enough work quarters to be eligible for Social Security disability benefits but He does have a VA Pension benefit, which offers cash and medical treatment for free based on financial need. He would like to understand how a personal injury settlement could affect his eligibility to be eligible for this benefit.

The answer is contingent upon whether the settlement is a lump sum or a structured one. Structured settlements are payments made 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 will affect any existing VA benefits because the VA will annually assess and count it as income. If Jim has extra assets after the settlement is annualized the applicant can apply again to be eligible for the pension benefit. However his assets must be under a limit that the VA has set to establish financial necessity.

Do I require an attorney?

Many spouses, military personnel, and former spouses are confused about VA disability compensation and the impact it has on financial issues in a divorce case. 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" when it comes to calculating child support and Alimony. These misconceptions can lead to serious financial mistakes.

It is possible to file a claim for disability benefits on your own however, the majority of disabled veterans will benefit from the assistance of a skilled lawyer. A veteran's disability lawyer who is experienced can examine your medical documents and gather the necessary evidence needed to build a strong argument to the VA. The lawyer can also file any appeals you may require to receive the benefits you are entitled to.

In addition, the majority of VA disability lawyers do not charge fees for consultations. The government also pays the lawyer directly from your award of retroactive benefits. This is an advantage of the Equal Access to Justice Act. Your fee agreement should clearly define the proportion of retroactive benefits that will be paid to your lawyer. A fee agreement could say for instance that the government would pay the attorney 20 percent of retroactive benefits. Any additional amounts are your to pay.

Can I Garnish My VA Benefits?

The VA provides monthly compensation to disabled veterans. These payments are designed to alleviate some of the effects of disabilities, diseases, or injuries sustained during or aggravated by a veteran's military service. The benefits for veterans disability attorneys with disabilities are subject to garnishment, just like other incomes.

Garnishment is a legal process which allows a court order an employer or government agency to deduct funds from the paycheck of a person who owes money and transfer them directly to an individual creditor. In the event of a divorce, garnishment can be used to pay for spousal support or child support.

There are some situations where a veteran's benefits can be encashable. The most frequent scenario involves those who have renounced their military retirement to receive disability compensation. In these instances the pension portion that is devoted to disability pay can also be garnished in order to cover the obligations of family support.

In other situations the benefits of a veteran can be withdrawn to cover medical expenses or past due federal student loans. In these instances the court may be able to directly to the VA to obtain the necessary information. It is crucial for disabled veterans to find a competent attorney to ensure that their disability benefits aren't being snatched away. This will prevent them from relying on payday lenders or private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements are an excellent help to veterans as well as their families. However they also come with specific complications. For instance, if a veteran gets divorced and is awarded an VA disability settlement, they should know what this means for the benefits they receive.

One of the major issues in this context is whether or not disability payments count as divisible assets in divorce. This question has been resolved in a variety of ways. One option is a Colorado court of appeals ruling that concluded that VA disability payments are not property and therefore cannot be divided as such. Another option is the U.S. Supreme Court ruling in Howell that ruled that garnishing the veteran's VA disability payments to pay Alimony is against the Uniformed Services Former Spouses Protection Act (USFSPA).

Another issue related to this issue is how disability benefits are interpreted to determine child maintenance and support. Both the USFSPA, and the Supreme Court, prohibit states from claiming disability benefits as income. However, certain states have chosen to take an alternative approach. Colorado for instance, takes all income sources together to determine the amount needed to support a spouse. The state then adds disability income to account for their tax-free status.

It is also crucial that veterans disability lawsuit understand how divorce will affect their disability benefits and how their ex spouses could slash their benefits. By being aware of these issues, veterans can protect their benefits and avoid unintended consequences.