How a veterans disability lawyer Disability Settlement Can Affect a Divorce Case

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

He wants to know if a verdict of a juror will affect his VA benefits. The answer is that it will not. But it will have some impact on his other sources of income.

Can I get compensation in the event of an accident?

You could be eligible for a settlement in the event that you were in the military but are now permanently disabled because of injuries or illnesses. This settlement will allow you to receive compensation for your medical bills, lost wages, and other expenses resulting from your injury or illness. The kind of settlement you can receive will depend on whether or not your illness or injury is related to service, what VA benefits you qualify to receive, and the amount to treat your injury or accident.

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 isn't in a position to have enough space for work to qualify for Social Security Disability benefits, however, he can claim the VA Pension which offers cash and medical treatment for free based on his financial need. He would like to be aware of what the implications of a personal injury settlement can affect his ability to benefit from this benefit.

The answer is dependent on whether the settlement is in the form of either a lump sum or structured settlement. Structured settlements require installments over time rather than a single payment. The amount that defendant pays is calculated to offset existing VA benefits. A lump sum settlement can affect any existing VA benefits as the VA will annually calculate and consider it to be income. In any case, if there are excess assets remain after the 12 month period when the settlement is annualized, Jim could be eligible for a new Pension benefit but only if his assets fall below a certain threshold that the VA determines to be a financial need.

Do I Need to Hire an attorney?

Many spouses, service members and former spouses are confused about VA disability compensation and its effect on financial issues in divorce cases. Some people believe, among other things, that the Department of Veterans Affairs compensation payments can be split like an army retirement in divorce cases or that they're "off limits" when calculating child support and alimony. These misconceptions could lead to financial mistakes that can have grave consequences.

It is possible to file an application for disability benefits yourself, but most disabled veterans will require the help of a qualified lawyer. A veteran's disability attorney can look over your medical records and gather the evidence required to present a convincing case before the VA. The lawyer will also be able to submit any appeals you need to get the benefits you're entitled.

Additionally, the majority of VA disability lawyers charge no fees for consultations. The government will also pay the lawyer directly from the amount of retroactive benefits. This is an advantage of the Equal Access to Justice Act. The fee agreement should specify clearly the proportion of retroactive benefits to be paid to your lawyer. A fee agreement could say that, for instance, the government will pay the attorney 20% of retroactive benefits. You are responsible for any additional amounts.

Can I Garnish My VA Benefits?

If a disabled veteran receives compensation from the VA the compensation is paid in the form of monthly payments. The purpose of the payments is to offset some of the consequences of illnesses, disabilities, or injuries sustained during or aggravated by a veteran's military service. The benefits for veterans' disability are subject to garnishment like any other income.

Garnishment is a court-ordered procedure that an employer or government agency stop money from the pay of a person who has an obligation and pay it directly to the creditor. In the case of a divorce, garnishment can be used to pay spousal maintenance or child support.

There are situations where a veteran's benefits can be garnished. The most common scenario involves a veteran who waived their military retirement to get disability compensation. In these cases, the amount of pension that is allocated 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 situations the court could go directly to the VA for the information they require. A disabled veteran should employ an experienced lawyer to protect their disability benefits. This will allow them to avoid having to rely on payday and private loan lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements are a tremendous help to veterans disability lawyer as well as their families. However, they come with specific complications. For example, if a veteran gets divorced and is awarded a VA disability settlement, they need to know how this will affect their benefits.

In this case one of the major issues is whether disability payments are considered to be assets that could be divided in a divorce. This question has been resolved in a couple of ways. One option is the Colorado court of appeals ruling that concluded that VA disability payments are not property and cannot be divided in that way. Another option is an U.S. Supreme Court ruling in Howell that held that garnishing a veteran's VA disability payments to pay for Alimony is against the Uniformed Services Former Spouses Protection Act (USFSPA).

Another concern that is related to this topic is how the disability benefits are interpreted for purposes of child support and maintenance. Both the USFSPA, and the Supreme Court, prohibit states from claiming disability benefits as income. Certain states employ a different approach. Colorado for instance adds all income sources together to determine the amount needed to provide for a spouse. Colorado then adds disability benefits in order to account for their tax-free status.

It is also important for veterans to know how their disability benefits will be affected if they get divorced and how their spouses who divorced them can take advantage of their benefits. By being aware of these issues, vets can protect their compensation as well as avoid the unintended consequences.