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How a Veterans Disability Settlement Can Affect a Divorce Case

Jim's client, 58 years old, is permanently disabled because of his service in the military. He receives a monthly Pension benefit from the Department of Veterans Affairs.

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

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

You may be eligible for a settlement if were a soldier but are now permanently disabled because of injuries or illnesses. This settlement will pay you for medical bills, lost income, and other expenses resulting from your illness or injury. The kind of settlement you'll get depends on whether or not your condition is service-connected or non-service connected, which VA benefits you are eligible for, and how much your accident or injury will cost to treat.

Jim, a 58 year veteran of Vietnam, was diagnosed as having permanent disabilities as a result of his two years of service. He isn't in a position to have enough work space to qualify for Social Security Disability benefits, but he has a VA Pension that provides cash and medical care for free depending on the financial needs of his. He would like to learn how a personal injury lawsuit will affect his eligibility to get this benefit.

The answer depends on whether the settlement is in the form of one lump sum or a structured settlement. Structured settlements are settlements that are paid over a time period rather than in a single payment, and the amount paid by the defendant is calculated to offset any existing VA benefits. A lump sum settlement can impact any existing VA benefits because the VA will annualize and consider it as income. If Jim has surplus assets after the settlement has been annualized and he wants to reapply, he will receive the Pension benefit. However, his assets must be under a limit that the VA has determined to be a financial necessity.

Do I have to hire an attorney?

Many spouses, service members and former spouses have questions about VA disability benefits and their impact on money issues during a divorce. Some people believe, among other things, that Department of Veterans Affairs compensation payments can be divided like an army retirement in a divorce case or that they're "off limits" when calculating child support and Alimony. These misconceptions can lead to financial mistakes that have serious consequences.

It is possible to submit a claim for disability benefits on your own, but most disabled veterans disability law firms would require the help of a skilled lawyer. A veteran's disability attorney can look over your medical records and gather the necessary evidence to present a convincing argument before the VA. The lawyer will also be able to file any appeals you may require to secure the benefits you are entitled to.

Most VA disability lawyers don't charge for consultations. Additionally the lawyer will usually be paid by the government directly from your retroactive past-due benefits. This is an advantage of the Equal Access to Justice Act. The proportion of retroactive past-due benefits your lawyer will receive should be clearly outlined in your fee agreement. For instance the fee agreement could state that the government will pay the lawyer up to 20% of retroactive benefits or award. You are responsible for any additional sums.

Can I Garnish My VA Benefits?

When a disabled veteran receives compensation from the VA the compensation is paid in the form of monthly payments. The payments are intended to help offset the impact of diseases, injuries or disabilities that were suffered or worsened during the veteran's service. As with all income, veterans disability benefits can be subject to garnishment.

Garnishment permits a court order that an employer or government agency deduct money from the wages of a person who owes an amount and then pay it directly to a creditor. In the case of a divorce, garnishment can be used to pay spousal maintenance or child support.

There are some situations where the benefits of a veteran could be encashable. The most common scenario is the veteran who has waived their military retirement in order to claim disability compensation. In these instances the pension portion that is devoted to disability payments can be garnished in order to fulfill the family support obligations.

In other cases, a veteran's benefits could be seized to pay for medical expenses or federal student loans that are over due. In these situations a judge can refer a case directly to the VA to obtain the information they need. A disabled veteran should employ an experienced attorney to secure their disability benefits. This will help them avoid having to depend 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 do come with specific complications. For example when a veteran is divorced and is awarded a VA disability settlement, they should be aware of how this will affect the benefits they receive.

A major issue in this context is whether disability payments are considered to be divisible assets in a divorce. The question has been answered in two ways. A Colorado court of appeals ruling decided that VA disability payments were not property and therefore could not be divided in this way. Another option is the U.S. Supreme Court ruling in Howell that held that garnishing a veteran's VA disability payments to pay for an alimony payment is a violation of 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 support and maintenance. Both the USFSPA as well as the Supreme Court, prohibit states from utilizing disability benefits as income. Certain states take an alternative approach. For instance, Colorado adds up all sources of income to determine how much in support a spouse is entitled to and then pluses up the disability benefits to take into the fact that they are tax-free.

It is also essential that veterans are aware of how divorce can affect their disability benefits and how their ex spouses can slash their income. By knowing about these issues, veterans can protect their earnings and avoid any unintended consequences.