How a Veterans 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 from the Department of Veterans Affairs.

He wants to know if a verdict of a juror will affect his VA benefits. It won't. However, it will affect his other income sources.

Can I Get Compensation for an accident?

If you have served in the military but are now permanently disabled as a result of injuries or illnesses, you may be eligible for a veteran disability settlement. This settlement will pay you for medical bills, lost income and other expenses resulting from your injury or sickness. The kind of settlement you can receive will depend on whether your condition is service-connected or not connected, what VA benefits you qualify for, as well as the amount your injury or accident will cost to treat.

For example, Jim is a 58-year old veteran who was diagnosed with permanent disabilities after two years of service during the Vietnam War. He doesn't have enough work quarters to qualify for Social Security disability benefits but He does have a VA Pension benefit which provides cash and medical treatment for free based on financial need. He wants to be aware of whether a personal injury settlement would affect his eligibility to be eligible for this benefit.

The answer is contingent upon whether the settlement is a lump sum or a structured one. Structured settlements are payments made over a long period of time rather than as a single payment and the amount received by the defendant is calculated to offset any existing VA benefits. A lump sum payout is likely to affect any existing benefits because the VA considers it a tax-deductible income and will annually increase it. In any event, if extra assets are left after the twelve month period after the settlement is annually recalculated, Jim could reapply for the Pension benefit but only if his assets fall below a threshold that the VA accepts as establishing financial need.

Do I really need to hire an attorney?

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

While it is possible to do an initial claim for disability benefits by yourself, the majority of disabled veterans disability lawsuits require the assistance of a professional attorney. An experienced veteran's disability lawyer can review your medical documents and gather the necessary evidence to support your case at the VA. The lawyer will also be able to file any appeals you may require to secure the benefits you're entitled.

In addition, the majority of VA disability lawyers do not charge fees for consultations. The government also pays the lawyer directly from your benefit of retroactive benefits. This is a benefit of the Equal Access to Justice Act. The percentage of retroactive past-due benefits your lawyer will receive should be clearly stated in your fee agreement. A fee agreement could state that, for example, the government would pay the attorney 20% of retroactive benefits. You are responsible for any additional amount.

Can I Garnish My VA Benefits?

If a disabled veteran receives compensation from the VA it is in the form of monthly payments. These payments are designed to offset some of the effects of disabilities, diseases or injuries incurred during or aggravated due to a veteran's military service. Like other income sources, veterans disability benefits could be subject to garnishment.

Garnishment is a legal action that allows a court to order an employer or government agency to take money from the wages of a person who owes money and send them directly to the creditor. In the case of divorce, garnishment could be used to pay for spousal support or child support.

There are a few situations in which a veteran's benefits can be repaid. The most frequent is the veteran who has waived his military retirement to receive disability compensation. In these instances the amount of pension that is attributed to disability benefits can be garnished for family support obligations.

In other situations veterans' benefits could be withdrawn to cover medical expenses or past due federal student loans. In these instances, a court may be able to direct the case to the VA to obtain the necessary information. It is essential for disabled veterans to find a competent attorney to ensure that their disability benefits are not removed. This can stop them from relying on payday lenders and private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements are a great assistance to veterans and their families. However, they come with specific complications. For example the case where a veteran is divorced and is awarded an VA disability settlement, they should be aware of how this will affect the benefits they receive.

In this regard the most important question is whether disability benefits are considered assets that could be divided in a divorce. The issue has been resolved in a variety of ways. A Colorado court of appeals decision declared that VA disability payments were not property and could not be divided this way. The other way is by an U.S. Supreme Court ruling in Howell that ruled that garnishing the veteran's VA disability payments to pay for an alimony payment is a violation of the Uniformed Services Former Spouses Protection Act (USFSPA).

Another concern relating to this issue is the treatment of disability benefits to children for maintenance and support. Both the USFSPA and the Supreme Court, prohibit states from counting disability benefits as income. However, certain states have chosen to take different approaches. For instance, Colorado adds up all sources of income to determine the amount in support a spouse requires and then adds disability payments to take into the fact that they are tax-free.

In the end, it is crucial for Veterans disability law Firms to understand how their disability compensation will be affected when they get divorced and how their ex-spouses may take advantage of their benefits. By being aware of these issues, vets can protect their income as well as avoid unintended consequences.