How a Veterans Disability Settlement Can Affect a Divorce Case

Jim's client, 58 years old, is permanently disabled because of his military service. He receives a monthly pension benefit from the Department of veterans disability law disability claim; you could try this out, Affairs.

He would like to know how a jury award will impact his VA benefits. The answer is not. However, it will have an impact on his other sources of income.

Can I claim compensation for an accident?

If you've served in the military and are permanently disabled due to injuries or illnesses, you may be eligible for a veteran disability settlement. This settlement can help compensate you for medical expenses, lost income and other expenses that resulted from your injury or sickness. The kind of settlement you are eligible for will depend on whether or not your injury or illness is a result of a service connection, the VA benefits you qualify for, and the cost to treat your accident or injury.

Jim, a 58-year old Vietnam veteran was diagnosed with permanent disabilities as a result of his two years of service. He does not have enough working space to be eligible for Social Security disability benefits but he does have a VA Pension benefit which provides cash and medical treatment for free dependent on financial need. He wants to be aware of whether a personal injury settlement could affect his ability to receive this benefit.

The answer is contingent upon whether the settlement is a lump-sum or a structured one. Structured settlements involve payments over time rather than one single payment. The amount paid by the defendant is calculated to offset the existing VA benefits. A lump sum payment can impact any existing VA benefits as the VA will annually evaluate and consider it to be income. If Jim has assets that are not used up after the settlement is annualized, he can reapply to be eligible for the pension benefit. However his assets must be below a threshold the VA has set that establishes financial necessity.

Do I require an Attorney?

Many spouses, service members and former spouses are confused about VA disability compensation and its impact on financial issues in a divorce case. Some people believe, among other things, that Department of veterans disability attorneys Affairs compensation payments can be split like a military retirement in divorce cases, or that they're "off limits" when it comes to calculating child support and alimony. These misconceptions may lead to serious financial errors.

It is possible to file a claim for disability benefits by yourself, but most disabled veterans would require the help from a competent lawyer. A disability attorney for veterans can look over your medical records and gather the evidence needed to make a strong case before the VA. The lawyer will also be able to make any appeals you require to obtain the benefits you're entitled to.

Furthermore, the majority of VA disability lawyers don't charge fees for consultations. In addition, the lawyer will generally be paid by the government directly out of the retroactive past-due benefits. This is a benefit of the Equal Access to Justice Act. Your fee agreement should clearly state the percentage of retroactive benefits to be paid to your lawyer. A fee agreement could say, for example, that the government will pay the attorney up 20 percent of retroactive benefits. The attorney is responsible for veterans disability claim any additional costs.

Can I Garnish My VA Benefits?

When disabled veterans disability compensation receive compensation from the VA it is in the form of monthly payments. The purpose of the payments is to help offset the effects of disability, illness or injuries incurred during or aggravated during a veteran's military service. The benefits for veterans with disabilities are subject to garnishment like any other income.

Garnishment can be a legal proceeding that allows a court to order an employer or government agency to omit funds from the pay of an employee who is in debt and to send them directly to the creditor. In the event of a divorce garnishment may be used to pay child or spousal support.

However, there are a few situations in which a veteran's disability benefits could be refunded. Most often, it is the case of a veteran who has renounced his military retirement to receive disability compensation. In these situations the portion of the pension allocated to disability payments may be garnished for family support obligations.

In other cases, a veteran's benefits could be garnished to pay medical bills or federal student loans that are over due. In these cases, a court can go directly to the VA to obtain the information they require. A disabled veteran should seek out an experienced attorney to protect their disability benefits. This can stop them from having to rely on payday lenders and private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be an enormous aid to veterans and their families, however they come with their own set of issues. If a veteran is divorced and receives a VA settlement, he or she should know what this will do to their benefits.

In this context, the main question is whether or not disability payments are considered to be assets that can be split 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 therefore could not be divided in this manner. Another way is through the U.S. Supreme Court ruling in Howell which held that garnishing the veteran's VA disability benefits to pay Alimony is against the Uniformed Services Former Spouses Protection Act (USFSPA).

Another issue that is related to this issue is the treatment of disability benefits to children for maintenance and support. The USFSPA and the Supreme Court both forbid states from claiming disability benefits as income for these purposes. However, some states have chosen to take an alternative approach. Colorado for instance, adds all income sources together to determine the amount required to provide for a spouse. Colorado then adds on disability payments in order to take into account their tax-free status.

It is also important that veterans are aware of how divorce affects their disability benefits and how their spouses who divorced can slash their income. By knowing about these issues, veterans can ensure the security of their compensation and avoid unwanted consequences.