How a Veterans Disability Settlement Can Affect a Divorce Case

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

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

Do I have the right to receive compensation for an accident?

You may be eligible for a settlement in the event that you have served in the military, but are now permanently disabled as a result of injuries or illnesses. This settlement can help you get compensation for medical bills, lost wages, and other costs resulting from your injury or illness. The kind of settlement you'll get will depend on whether the medical condition is service-connected, or not connected, what VA benefits you qualify for, and the amount your accident or injury will cost to treat.

Jim, a 58-year old Vietnam veteran, was diagnosed as having permanent disabilities due to his two years of service. He does not have enough space for work to be eligible for Social Security Disability benefits, but he has an VA Pension that offers cash and medical care for free according to his financial need. He would like to learn what the implications of a personal injury settlement will affect his ability to be eligible for this benefit.

The answer will depend on whether the settlement is in the form of a lump sum or a structured settlement. Structured settlements are payments made over a period of time instead of in one payment and the amount received by the defendant is used to offset any existing VA benefits. In contrast, a lump sum payout is likely to affect existing benefits since the VA considers it a tax-deductible income and will annually increase it. In the event that there are any excess assets remain after the period of twelve months when the settlement is annualized Jim could apply again for the Pension benefit but only if his assets are below a certain 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 its effect on financial issues in a divorce case. Some people believe, among other things that Department of Veterans Affairs compensation payments can be split like the military retirement in divorce proceedings or that they're "off limits" when it comes to calculating child support and Alimony. These misconceptions can result in financial mistakes that have serious consequences.

It is possible to file a claim for disability benefits on your own However, most disabled veterans will require the help of a qualified lawyer. A veteran's disability lawyer can look over your medical records and gather the evidence needed to present a convincing case to the VA. The lawyer can also help to file any appeals you may require to receive the benefits you are entitled to.

Most VA disability lawyers do not charge for consultations. The government also pays the lawyer directly from your benefit of retroactive benefits. This is an advantage of the Equal Access to Justice Act. The percentage of retroactive past-due benefits your lawyer will be paid must be specified in your fee agreement. For example your fee agreement may provide that the government can pay the attorney up to 20% of retroactive benefits or provide. You are responsible for any additional costs.

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 payments are meant to alleviate some of the consequences of illnesses, disabilities or injuries incurred during or aggravated by the veteran's military service. Like all incomes, benefits for veterans disability law firms - Additional Info, with disabilities are subject to garnishment.

Garnishment permits a court order that an employer or government agency deduct money from the pay of an individual who owes the debt and pay it directly to the creditor. In the event of divorce, garnishment could be used to pay spousal or child support or child support.

However, there are certain circumstances where a veteran's disability benefits can be refunded. Most common is the veteran who has renounced his military retirement in order to receive disability compensation. In these scenarios the pension portion that is allocated to disability benefits can be garnished to fulfill the family support obligations.

In other cases, a veteran's benefits may also be seized to pay medical bills or federal student loans that are past due. In these cases the court can go directly to the VA for the information they require. A disabled veteran should hire an experienced attorney to safeguard their disability benefits. This will prevent them from having to depend on payday and private loan lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a huge aid to veterans and their families. However, they come with their own set of complications. For example, if a veteran gets divorced and receives an VA disability settlement, they should know how this could affect their benefits.

One of the major issues in this context is whether or not the disability benefits are considered divisible assets in a divorce. This question has been addressed in two ways. A Colorado court of appeals decision declared that VA disability payments were not property and could not be divided this way. The U.S. Supreme Court ruled in Howell, that garnishing a veteran’s VA disability benefits for alimony was a violation of USFSPA.

Another concern relating to this issue is the handling of disability benefits to children for maintenance and support. Both the USFSPA and the Supreme Court, prohibit states from claiming disability benefits as income. However, certain states have taken a different approach. Colorado for instance adds all sources of income together to determine the amount required to support a spouse. It then adds disability benefits in order to account for their tax-free status.

In the end, it is crucial for veterans to be aware of how their disability benefits will be affected if they get divorced and how their spouses who divorced them can affect their compensation. By knowing about these issues, veterans can protect their benefits and avoid unwanted consequences.