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 benefit from the Department of Veterans Affairs.

He wants to know if a jury award will impact his VA benefits. It won't. However, it could have an impact on his other sources of income.

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

If you have served in the military and are permanently disabled as a result of injuries or illnesses, you may be eligible for a veteran disability settlement. This settlement will allow you to get compensation for medical bills, lost wages and other expenses related to your illness or injury. The type of settlement you can receive depends on whether your condition is service-connected or non-service connected, what VA benefits you qualify for, and what your injury or accident will cost to treat.

Jim who is a 58-year veteran of the Vietnam war was diagnosed with permanent disabilities as a result of his two years of service. Jim does not have enough space for work to be eligible for Social Security Disability benefits, but he has the VA Pension, which provides cash and medical treatment for free according to his financial need. He would like to be aware of how a personal injury lawsuit will affect his ability to receive this benefit.

The answer is dependent on whether the settlement is in the form of an unintentional lump sum or a structured settlement. Structured settlements are the ones that are paid over a long period of time instead of in one payment and the amount paid by the defendant is calculated to offset any existing VA benefits. A lump sum payment can impact any existing VA benefits as the VA will annually calculate and consider it income. In the event that there are any excess assets are left over after the twelve month period when the settlement has been annualized Jim could be eligible for a new Pension benefit, but only if his assets fall below a certain threshold that the VA agrees establishes financial need.

Do I need to hire an Attorney?

Many spouses, military personnel and former spouses have questions about VA disability payments and their effect on financial issues during a divorce. Some people believe, for instance, that the Department of Veterans Affairs compensation payments can be split as an army retirement in divorce cases or that they're "off limits" when it comes to calculating child support and Alimony. These misconceptions can lead to financial mistakes that can have grave consequences.

It is possible to submit an application for disability benefits on your own However, most disabled veterans will benefit from the assistance of a professional lawyer. A qualified veteran's disability lawyer can examine your medical records and gather all the necessary evidence needed to build a strong case to the VA. The lawyer will also be able to file any appeals that you need to get the benefits you're entitled.

In addition, the majority of VA disability lawyers don't charge fees for consultations. Additionally that the lawyer will normally be paid by the government directly from your retroactive past-due benefits. This is a benefit of the Equal Access to Justice Act. The fee agreement should clearly define the percentage of retroactive benefits that will be paid to your lawyer. For instance, a fee agreement can provide that the government can pay the attorney up to 20% of the retroactive benefits or award. The attorney is responsible for any additional sums.

Can I Garnish My VA Benefits?

The VA offers monthly payments to disabled veterans disability attorneys. These payments are designed to alleviate the effects of illnesses, injuries or disabilities that have been sustained or worsened during the veteran's time of service. Like all incomes, benefits for veterans disability litigation with disabilities are subject to garnishment.

Garnishment lets a court order that an employer or government agency stop cash from the pay of a person who has a debt and send it directly to the creditor. In the case of divorce, garnishment may be used to pay spousal maintenance or child support.

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

In other cases veterans' benefits could be garnished to pay for medical expenses or past-due federal student loans. In these cases the court might be able to direct the case to the VA to obtain the necessary information. The disabled veteran should consult an experienced attorney to safeguard their disability benefits. This can stop them from having to rely on payday lenders or private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements are an excellent help to veterans and their families. However, they come with their own set of complications. If a veteran gets divorced and receives an VA settlement then they must be aware of the implications to the benefits they receive.

A major issue in this context is whether or not the disability benefits are considered divisible assets in divorce. The question has been answered in two ways. A Colorado court of appeals ruling determined that VA disability payments were not property and Veterans Disability Settlement could not be divided in this way. The U.S. Supreme Court ruled in Howell that garnishing a veteran’s VA disability payments to pay Alimony was against the USFSPA.

Another concern related to this issue is how disability benefits are treated in the context of child maintenance and support. The USFSPA and the Supreme Court both forbid states from counting disability benefits as income for these purposes. However, some states have taken different approaches. Colorado for instance, adds all sources of income together to determine the amount required to support a spouse. The state then adds disability payments to reflect their tax-free status.

It is also important that veterans understand how their disability benefits will be affected when they get divorced and how their spouses who divorced them can be able to garnish their compensation. If they are aware of these issues, veterans disability legal can safeguard their income and avoid unintended consequences.