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 receives a monthly Pension benefit from the Department of Veterans Affairs.

He wants to know how an award from a jury will impact his VA benefits. It won't. But it will have some impact on the other sources of income he has.

Can I Receive Compensation for an Accident?

If you've served in the military but are now permanently disabled as a result of injuries or illnesses, you may be eligible for a veterans disability settlement. This settlement can help compensate you for medical bills, lost income, and other costs that resulted from your injury or sickness. The kind of settlement you'll be able to receive depends on whether your medical condition is service-connected, or not connected, which VA benefits you qualify for, as well as the amount your injury or accident will cost to treat.

For instance, Jim is a 58-year old veteran who was diagnosed with permanent disabilities after two years of service during the Vietnam War. He does not have enough working space to qualify for Social Security disability benefits but the VA Pension benefit that offers medical care and cash dependent on financial need. He would like to understand how a personal injury settlement will affect his ability to benefit from this benefit.

The answer depends on whether the settlement is in the form of a lump sum or a structured settlement. Structured settlements are the ones that are paid over a time period rather than a single payment, and the amount paid by the defendant is used to offset any existing VA benefits. A lump sum settlement can affect any existing VA benefits as the VA will annualize and consider it income. In any case, if there are 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 certain threshold that the VA accepts as establishing financial need.

Do I really need to hire an attorney?

Many spouses, members of the military and former spouses are concerned about VA disability benefits and their impact on money issues during divorce. In addition, some people think that the Department of Veterans Affairs' compensation payments are able to be divided as a military pension in divorce or are "off limits" in the calculation of child support and Alimony. These misconceptions could lead to financial mistakes that have serious consequences.

It is possible to file an application for disability benefits by yourself However, most disabled veterans will benefit from the assistance of a skilled lawyer. An experienced veteran's disability lawyer will examine your medical records and gather the necessary evidence needed to build a strong case at the VA. The lawyer will also be able to file any appeals that you require to receive the benefits you are entitled to.

Furthermore, the majority of VA disability lawyers do not charge fees for consultations. Additionally the lawyer will usually be paid by the government directly out of your retroactive past due benefits. This is a benefit of the Equal Access to Justice Act. The fee agreement should clearly state the percentage of retroactive benefits to be paid to your lawyer. For instance your fee agreement may specify that the government will pay the attorney up to 20% of retroactive benefits or pay. You are responsible for any additional sums.

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 alleviate some of the effects of disability, illness, or injuries sustained during or aggravated due to a veteran's military service. Like all income, the veterans disability lawyer disability benefits can be subject to garnishment.

Garnishment is a legal action that allows a court to order an employer or government agency to deduct funds from the pay of someone who owes money and transfer them directly to the creditor. In the event of a divorce the garnishment could be used for child or spousal support.

There are situations where the benefits of a veteran can be garnished. The most frequent 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 could be garnished to meet family support obligations.

In other cases the benefits of a veteran can be garnished to pay for medical expenses or past-due federal student loans. In these situations, a court can go directly to the VA for the information they require. The disabled veteran should consult an experienced lawyer to protect their disability benefits. This will allow them to avoid being forced to rely on payday loans or private loans. lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements are a great help to veterans and their families. However, they come with certain complications. For instance when a veteran is divorced and receives a VA disability settlement, they should be aware of how this could affect their benefits.

In this context the most important question is whether or not disability payments are considered to be assets that can be divided in divorce. This question has been addressed in two ways. A Colorado court of appeals ruling determined that VA disability payments were not property and could not be divided in 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 related to this issue is how disability benefits are interpreted to determine child maintenance and support. Both the USFSPA, and the Supreme Court, prohibit states from utilizing disability benefits as income. However, some states have chosen to take different approaches. Colorado, for example, takes all income sources together to determine the amount required to support a spouse and then adds disability benefits to reflect their tax-free status.

It is also essential that veterans are aware of how divorce can affect their disability benefits and how their spouses who divorced can garnish their compensation. By being aware of these issues, veterans can protect their income as well as avoid the unintended consequences.