How a veterans disability attorney 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 disability law firms Affairs.

He wants to know how the jury's verdict will impact his VA benefits. It won't. It will, however, affect his other sources of income.

Can I Receive Compensation for an accident?

If you have served in the military but are now permanently disabled because of injuries or illnesses, you could be eligible for a veteran disability settlement. This settlement will pay you for medical bills, lost income, and other costs that resulted from your injury or sickness. The type of settlement you will receive will depend on whether or not your injury or illness is service-related, what VA benefits you are eligible to receive, and the amount to treat your accident or injury.

Jim who is a 58-year old Vietnam veteran was diagnosed with permanent disabilities because of his two years of service. He doesn't have enough work quarters to be eligible for Social Security disability benefits but there is a VA Pension benefit that provides cash and free medical care dependent on financial need. He wants to find out if a personal injury settlement would affect his ability get this benefit.

The answer depends on whether the settlement is in the form of one lump sum or a structured settlement. Structured settlements consist of payments over a period of time rather than one lump sum payment. The amount paid by defendant is calculated to offset existing VA benefits. However, a lump sum payment will likely alter any existing benefits as the VA considers it to be income and will annually calculate it. If Jim has surplus assets after the settlement is annually adjusted and he wants to reapply, he will be eligible for the pension benefit. However the assets must be less than a certain threshold that the VA has set that establishes financial necessity.

Do I need to hire an attorney?

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

While it is possible to file an initial claim for disability benefits on your own, the majority of disabled veterans benefit from the assistance of a skilled attorney. A disability attorney for veterans can examine your medical records to collect the evidence necessary to prove your case in front of the VA. The lawyer can also file any appeals you might need to receive the benefits you deserve.

Moreover, most VA disability lawyers do not charge fees for consultations. The government will also pay the lawyer directly from the award of retroactive benefits. This is an advantage of the Equal Access to Justice Act. Your fee agreement should clearly specify the amount of retroactive benefits that will be paid to your lawyer. A fee agreement could state, for example, that the government will pay the attorney up 20 percent of retroactive benefits. The attorney is responsible for any additional sums.

Can I Garnish My VA Benefits?

The VA offers monthly payments 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. Like all income, the veterans disability benefits can be subject to garnishment.

Garnishment permits a court order that an employer or government agency stop cash from the pay of an individual who owes an obligation and pay it directly to the creditor. In the event of a divorce garnishment may be used to pay child or spousal care.

However, there are some circumstances where a veteran's disability benefits may be repaid. The most common scenario involves veterans who have waived their military retirement to receive disability compensation. In these cases the amount of pension that is allocated to disability pay can be garnished to pay family support obligations.

In other cases veterans' benefits could be seized to pay medical expenses or past-due federal student loans. In these situations a court may be able to directly to the VA to obtain the necessary information. The disabled veteran should consult an experienced attorney to protect their disability benefits. This can prevent them from having to rely on payday lenders and private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a big aid to veterans disability lawyers and their families, but they come with their own set-of complications. If a veteran is divorced and receives an VA settlement and is eligible, they should be aware of the impact this could have to the benefits they receive.

In this regard the most important question is whether disability payments count as assets that can be split in a divorce. This question has been addressed in two ways. One option is an Colorado court of appeals decision which concluded that VA disability payments are not property and cannot be divided in this way. The U.S. Supreme Court ruled in Howell that garnishing a veteran’s VA disability payments for the purpose of alimony was in violation of USFSPA.

Another concern with this issue is the treatment of disability benefits to children for support and maintenance. The USFSPA and the Supreme Court both forbid states from counting disability payments as income to be used for this purpose. However, some states have taken the opposite approach. Colorado is one example. It adds all income sources together to determine the amount required to support a spouse. It then adds on disability payments in order to take into account their tax-free status.

In the end, it is crucial for veterans to know how their disability compensation will be affected when they get divorced and how their spouses who divorced them can be able to garnish their compensation. By being informed about these issues, veterans can protect their compensation as well as avoid unintended consequences.