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 is able to receive a monthly pension from the Department of Veterans Affairs.

He wants to be aware of whether a verdict by a jury will impact his VA benefits. It won't. But it will have an impact on his other sources of income.

Can I get compensation for an accident?

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

Jim who is a 58-year veteran of Vietnam was diagnosed with permanent disabilities because of his two years of service. He hasn't got enough work space to be eligible for Social Security disability benefits but he does have a VA Pension benefit that offers cash and medical treatment for free dependent on financial need. He would like to learn how a personal injuries settlement will affect his eligibility to benefit from this benefit.

The answer depends on if the settlement is a lump-sum or a structured one. Structured settlements are the ones that are paid over a long period of time rather than in a single payment and the amount received by the defendant is calculated to offset any existing VA benefits. A lump sum payment can impact any existing VA benefits because the VA will annually evaluate and consider it as income. In either case, if excess assets are left over after the twelve month period after the settlement is annually recalculated, Jim may be eligible to apply again for the Pension benefit, but only if his assets are less than a minimum threshold that the VA accepts as establishing financial need.

Do I need to hire an attorney?

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

While it is possible to do an initial claim for disability benefits on your own, the majority of disabled veterans disability attorney benefit from the assistance of a skilled attorney. A qualified veteran's disability lawyer will review your medical documents and gather the required evidence to support your argument to the VA. The lawyer can also file any appeals you may need in order to receive the benefits you are entitled to.

Moreover, most VA disability lawyers do not charge fees for consultations. In addition that the lawyer will normally be paid by the government directly out of your award of retroactive past-due benefits. This is an advantage of the Equal Access to Justice Act. The proportion of retroactive past-due benefits that your lawyer will be paid must be specified in your fee agreement. For instance, a fee agreement can state that the government will pay the attorney up to 20% of retroactive benefits or pay. Any additional amounts are your obligation.

Can I Garnish My VA Benefits?

If a disabled veteran is granted compensation from the VA it is received in the form of monthly payments. The purpose of the payments is to offset some of the consequences of illnesses, disabilities or injuries incurred during or aggravated during a veteran's military service. Like all income, the veterans disability benefits can be subject to garnishment.

Garnishment is a legal process that allows a court to require an employer or government agency to deduct funds from the pay of an employee who owes money, and then send them directly to a creditor. In the case of divorce, garnishment could be used to pay spousal maintenance or child support.

There are certain situations where the benefits of a veteran could be encashable. The most common situation involves veterans who have waived their military retirement to get disability compensation. In these instances the amount of pension that is attributed to disability benefits may be garnished for family support obligations.

In other cases, a veteran's benefit may be seized to cover medical expenses or federal student loans that are over due. In these situations a judge can refer a case directly to the VA to obtain the information they require. The disabled veteran should consult an experienced lawyer to protect their disability benefits. This can prevent them from having to rely on payday lenders or private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a huge assistance to veterans and their families, however they're not without their own set of challenges. For example, if a veteran gets divorced and receives an VA disability settlement, they must be aware of how this could affect the benefits they receive.

A major issue in this context is whether disability benefits are considered divisible assets in a divorce. The issue has been resolved in a couple of ways. One method is a Colorado court of appeals decision which concluded that VA disability payments are not property, and therefore cannot be divided in that way. The U.S. Supreme Court ruled in Howell that garnishing a veteran's VA disability benefits for Alimony was against the USFSPA.

Another issue related to this topic is how the disability benefits are interpreted to determine 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 chosen to take different approaches. Colorado for instance adds all sources of income together to determine the amount required to support a spouse and then adds disability income to account for their tax-free status.

Finally, it is important for veterans to understand how their disability compensation will be affected when they get divorced and how their spouses' ex-spouses could be able to garnish their compensation. By being knowledgeable about these issues, veterans can ensure the security of their compensation and avoid unwanted consequences.