How a Veterans Disability Settlement Can Affect a Divorce Case

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

He would like to be aware of whether a verdict by a jury will affect his VA benefits. It will not. However, it will have an impact on his other sources of income.

Can I Get Compensation for an accident?

You could be eligible to receive a settlement if you have served in the military, but are now permanently disabled because of injuries or illnesses. This settlement could help you receive compensation for your medical bills, lost wages, and other costs resulting from your illness or injury. 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, and how much your accident or injury will cost to treat.

For instance, Jim is a 58-year old veteran who was diagnosed with permanent disabilities based on two years of service during the Vietnam War. He does not have enough space for work to qualify for Social Security Disability benefits, however, he is able to claim the VA Pension which offers cash and medical care for free dependent on the amount of money he needs. He wants to determine if a personal accident settlement would affect his eligibility to get this benefit.

The answer is dependent on whether the settlement is a lump sum or a structured one. Structured settlements require installments over time rather than a single payment. The amount paid by defendant is calculated to offset existing VA benefits. A lump sum payment will impact any existing VA benefits since the VA will annually assess and count it income. If Jim has excess assets after the settlement is annualized and he wants to reapply, he will be eligible for the pension benefit. However the assets he has to be under a limit that the VA has set to establish financial necessity.

Do I require an attorney?

Many service members, spouses and former spouses are confused about VA disability compensation and its effect on the financial aspects of divorce cases. Some people think, for instance, that the Department of Veterans Affairs compensation payments are split like an army retirement in divorce cases, or that they're "off limits" when calculating child support and alimony. These misconceptions could lead grave financial errors.

It is possible to file a claim for disability benefits by yourself however, the majority of disabled veterans disability law firm will require the help of a skilled lawyer. A veteran's disability lawyer who is experienced can review your medical documents and gather the necessary evidence to support your argument to the VA. The lawyer can also help to submit any appeals you require to secure the benefits you deserve.

The majority of VA disability lawyers don't charge for consultations. The government also pays the lawyer directly from the payment of retroactive benefits. This is an advantage of the Equal Access to Justice Act. The fee agreement should clearly specify the proportion of retroactive benefits that will be paid to your lawyer. For example, a fee agreement can provide that the government can pay the attorney up to 20% of the retroactive benefits or give. Any additional amounts are your to pay.

Can I Garnish My VA Benefits?

The VA offers monthly payments to disabled veterans. These payments are designed to offset some of the effects of diseases, disabilities or injuries that are sustained or aggravated by a veteran's military service. As with all income, veterans disability benefits can be subject to garnishment.

Garnishment is a legal action that permits a court to make an order to an employer or government agency to take money from the pay of someone who owes money, and then send them directly to the creditor. In the case of divorce, garnishment may be used to pay spousal support or child support.

There are some situations where a veteran's benefits can be encashable. Most often, it is the case of a veteran who has waived his military retirement to receive disability compensation. In these scenarios the part of pension that is devoted to disability compensation can be garnished to fulfill the family support obligations.

In other instances, a veteran's benefit may be garnished in order to pay for medical expenses or federal student loans that are past due. In these situations the court can go directly to the VA for the information they need. It is important for a disabled veteran to retain a knowledgeable attorney to ensure that their disability benefits aren't being snatched away. This will allow them to avoid having to depend on payday loans and private loans. lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements are a tremendous help to veterans as well as their families. However they do come with their own set of complications. For example when a veteran is divorced and is awarded an VA disability settlement, they should be aware of what this means for the benefits they receive.

One of the major issues in this regard is whether or not the disability benefits are considered divisible assets in divorce. This issue has been settled in a couple of ways. One option is a Colorado court of appeals ruling that concluded that VA disability payments are not property, and therefore cannot be divided as such. Another option is a U.S. Supreme Court ruling in Howell which ruled that garnishing the veteran's VA disability payments to pay the payment of alimony is in violation of the Uniformed Services Former Spouses Protection Act (USFSPA).

Another concern relating to this issue is the treatment of disability benefits for child maintenance and support. Both the USFSPA and the Supreme Court, prohibit states from claiming disability benefits as income. Certain states take different approaches. Colorado, for example, adds all sources of income together to determine the amount required to provide for a spouse. Colorado then adds disability income in order to take into account their tax-free status.

It is also essential to know how divorce will affect their disability compensation and how ex-spouses can slash their income. By being aware of these issues, veterans disability law firms can safeguard their benefits as well as avoid any unintended consequences.