How a veterans disability law firms Disability Settlement Can Affect a Divorce Case

Jim's client, a 58-year-old man, is permanently disabled as a result of his military service. He receives a monthly pension benefit from the Department of veterans disability law firm Affairs.

He would like to know how a jury award will affect his VA benefits. It will not. But it will have an impact on his other sources of income.

Can I claim compensation for an accident?

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

For instance, Jim is a 58-year veteran who was diagnosed with permanent disabilities based on two years of service in the Vietnam War. He does not have enough space for work to qualify for Social Security Disability benefits, but he has an VA Pension that offers free medical care and cash based on his financial need. He wants to determine if a personal accident settlement will affect his ability to receive this benefit.

The answer is dependent on whether the settlement is in the form of one lump sum or a structured settlement. Structured settlements involve payments over a period of time instead of one lump sum payment. The amount paid by defendant is calculated to offset the existing VA benefits. However, a lump sum settlement will probably 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 are left 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 below a threshold that the VA agrees 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. Some people believe, for instance, that Department of Veterans Affairs compensation payments can be split as military retirements in a divorce case or that they're "off limits" when calculating child support and alimony. These misconceptions could lead to financial mistakes that have serious repercussions.

It is possible to file a claim for disability benefits on your own, but most disabled veterans will benefit from the assistance from a competent lawyer. A disability attorney for veterans can examine your medical records in order to collect the evidence necessary to present a convincing argument before the VA. The lawyer can also file any appeals that you may require to receive the benefits you deserve.

The majority of VA disability lawyers do not charge for consultations. Additionally, the lawyer will generally be paid by the government directly out of your retroactive past due benefits. This is a benefit of the Equal Access to Justice Act. Your fee agreement should clearly define the percentage of retroactive benefits that will be paid to your lawyer. A fee agreement could stipulate that, for instance, the government will provide the attorney with 20% of retroactive benefits. You will be accountable for any additional amounts.

Can I Garnish My VA Benefits?

The VA provides monthly compensation to disabled veterans. The payments are intended to offset the effects of injuries, illnesses or disabilities that have been sustained or aggravated by a veteran's service. The benefits for veterans with disabilities are subject to garnishment just like other incomes.

Garnishment is a legal action which allows a court decide that an employer or a government agency to take money from the pay of an employee who owes money, and then send them directly to the creditor. In the event of a divorce garnishment can be used to pay child or spousal maintenance.

There are certain situations where the benefits of a veteran could be encashable. Most common is the veteran who has renounced his retirement from the military in order to receive disability compensation. In these cases, the portion of the pension that is allocated to disability pay could be garnished to meet family support obligations.

In other instances, a veteran's benefit may be garnished to cover medical expenses or federal student loans that are over due. In these instances the court could go directly to the VA for the information they require. It is important for a disabled veteran to find a competent attorney to ensure that their disability benefits are not removed. This will help them avoid having to rely on private loans and payday lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be an enormous assistance to veterans and their families, but they come with their own set of challenges. For example in the event that a veteran gets divorced and is awarded a VA disability settlement, they must be aware of how this could affect their benefits.

One of the major issues in this context is whether or not the disability payments are considered divisible assets in divorce. This question has been addressed in two ways. One method is a Colorado court of appeals decision that found 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 concern with this topic is how the disability benefits are treated in the context of child support and maintenance. Both the USFSPA as well as the Supreme Court, prohibit states from utilizing disability benefits as income. However, certain states have adopted a different approach. For instance, Colorado adds up all sources of income to determine the amount in support a spouse is entitled to and then adds up the disability benefits to take into account that they are tax free.

It is also essential that veterans know the impact divorce has on their disability benefits and how their spouses who divorced could slash their benefits. By being knowledgeable about these issues, veterans disability attorney can protect their compensation and avoid unintended consequences.