How a Veterans Disability Settlement Can Affect a Divorce Case

Jim's 58-year-old client is permanently disabled because of his time in the military. 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 not. It will, however, have an impact on the other sources of income he earns.

Can I get compensation in the event of an accident?

If you have served in the military, and are permanently disabled because of injuries or illnesses, you may be eligible for a veterans disability settlement. This settlement will pay you for medical bills, lost income, and other expenses resulting from your illness or injury. The type of settlement you will receive will depend on whether or not your injury or illness is related to service, what VA benefits you qualify for, and the cost to treat your accident or injury.

For instance, Jim is a 58-year old veteran who was diagnosed with permanent disabilities after two years of service during the Vietnam War. He doesn't have enough work space to qualify for Social Security Disability benefits, however, he does have an VA Pension that offers cash and medical treatment for free according to his financial need. He would like to understand how a personal injury settlement can affect his ability to get 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 time frame instead of in one 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 since the VA will annually calculate and consider it to be income. In any event, if extra assets are left after the twelve-month period when the settlement is annualized Jim could be eligible for a new Pension benefit, but only if his assets are below a threshold that the VA is able to agree establishes financial need.

Do I require an attorney?

Many spouses, service members and former spouses are confused about VA disability compensation and its impact on the financial aspects of divorce cases. Among other things, some people think that the Department of Veterans Affairs' compensation payments are able to be divided like a military pension divorce or are "off limits" when it comes to calculation of child support and Alimony. These misconceptions can lead to financial mistakes that can have grave consequences.

While it is possible to make an initial claim for disability benefits by yourself, the majority of disabled veterans disability law firms benefit from the help of a qualified attorney. A disability attorney for veterans disability attorney can examine your medical records in order to gather the evidence required to prove your argument before the VA. The lawyer can also file any appeals that you may need in order to receive the benefits you are entitled to.

The majority of VA disability lawyers don't charge for consultations. The government will also pay the lawyer directly from the award of retroactive benefits. This is one of the benefits 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 state that, for instance, the government would give the attorney up to 20% of retroactive benefits. Any additional amounts are your responsibility.

Can I Garnish My VA Benefits?

When disabled veterans receive compensation from the VA the compensation is paid in the form of monthly payments. These payments are designed to help offset the effects of disability, illness or injuries that are sustained or aggravated during a veteran's military service. As with all income, veterans disability benefits can be subject to garnishment.

Garnishment permits a court order that an employer or government agency withhold money from the pay of a person who has an amount and then pay it directly to the creditor. In the event of a divorce the garnishment could be used for child or spousal maintenance.

There are a few situations in which veterans' benefits could be garnished. The most common scenario involves veterans who have waived their military retirement to get disability compensation. In these cases, the portion of the pension apportioned to disability pay can be garnished for family support obligations.

In other circumstances veterans' benefits could be garnished to pay for medical expenses or past due federal student loans. In these instances, a court can go directly to the VA for the information they need. It is vital for disabled veterans to find a competent attorney to ensure that their disability benefits are not garnished. This will allow them to avoid having to depend on payday loans or private loans. lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be an enormous benefit for veterans and their families, however they don't come without their own set of challenges. If a person divorces and receives an VA settlement it is important to be aware of what this might do to their benefits.

One of the major issues in this regard is whether or not disability benefits are considered divisible assets in divorce. This question has been resolved in two ways. A Colorado court of appeals ruling determined that VA disability payments were not property and therefore could not be divided in this manner. Another method is the U.S. Supreme Court ruling in Howell that held that garnishing the veteran's VA disability payments to pay for alimony is a violation of the Uniformed Services Former Spouses Protection Act (USFSPA).

Another concern related to this issue is the handling of disability benefits for child support and maintenance. Both the USFSPA as well as the Supreme Court, prohibit states from utilizing disability benefits as income. However, some states have chosen to take different approaches. Colorado is one example. It adds all income sources together to determine the amount needed to support a spouse. It then adds disability payments to account for their tax-free status.

It is also important for veterans to understand how their disability benefits will be affected if they are divorced and how their spouses' ex-spouses could be able to garnish their compensation. By knowing about these issues, veterans can protect their compensation and avoid unwanted consequences.