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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 the jury's verdict will impact his VA benefits. The answer is that it will not. It will, however, have an impact on his other income sources.

Can I Receive Compensation in the event of an accident?

You could be eligible for a settlement if were a soldier but are now permanently disabled as a result of injuries or illnesses. This settlement will help pay you for medical bills, lost income, and other expenses that resulted from your injury or sickness. The kind of settlement you will receive will depend on whether or not your injury or illness is service-connected, what VA benefits you qualify for, as well as the cost to treat your injury or accident.

Jim is a 58 year old Vietnam veteran was diagnosed with permanent disabilities as a result of his two years of service. He doesn't have enough work quarters to qualify for Social Security disability benefits but he does have a VA Pension benefit that offers cash and free medical care that is based on financial need. He would like to be aware of whether a personal injury settlement could affect his ability to get this benefit.

The answer is contingent upon whether the settlement is in the form of an unintentional lump sum or a structured settlement. Structured settlements are based on payments over time, rather than a single payment. The amount paid by the defendant is calculated to offset existing VA benefits. A lump sum settlement will affect any existing VA benefits since the VA will annually calculate and consider it income. If Jim has surplus assets after the settlement has been annualized and he wants to reapply, he will receive the Pension benefit. However the assets must be below a minimum threshold that the VA has set to establish financial necessity.

Do I need to hire an attorney?

Many service members, spouses and former spouses are confused about VA disability compensation and the impact it has on the financial aspects of divorce cases. Some people think that the Department of Veterans Affairs' compensation payments are able to be divided like a military pension divorce or are "off limits" when it comes to calculation of child support and alimony. These misconceptions can lead to serious financial mistakes.

It is possible to file an application for Veterans Disability disability benefits by yourself However, most disabled veterans will require the help from a competent lawyer. A disability attorney for veterans can examine your medical records in order to gather the necessary evidence to prove your argument before the VA. The lawyer can also file any appeals you may need in order to receive the benefits you deserve.

Furthermore, the majority of VA disability lawyers do not charge fees for consultations. Additionally the lawyer will typically be paid by the government directly from your award of retroactive past-due benefits. This is an advantage of the Equal Access to Justice Act. Your fee agreement should specify clearly the amount of retroactive benefits to be paid to your lawyer. For instance the fee agreement could provide that the government can pay the lawyer up to 20% of retroactive benefits or pay. The attorney is responsible for any additional costs.

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 compensate for some of the effects of disabilities, diseases, or injuries sustained during or aggravated during a veteran's military service. As with all income, veterans disability benefits can be subject to garnishment.

Garnishment is a legal action that allows a court to order an employer or government agency to withhold funds from the paycheck of a person who owes money, and then send them directly to an individual creditor. In the event of divorce, garnishment may be used to pay child or spousal support.

However, there are some circumstances where a veteran's disability benefits could be refunded. The most frequent is the veteran who renounced his military retirement in order to receive disability compensation. In these scenarios the part of pension that is allocated to disability benefits can be garnished in order to meet family support obligations.

In other cases the benefits of a veteran can be withdrawn to cover medical expenses or past due federal student loans. In these cases the court could go directly to the VA for the information they require. The disabled veteran should consult an experienced attorney to secure their disability benefits. This will prevent them from relying on payday lenders or private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be an enormous aid to veterans and their families, but they're not without their own set of challenges. For instance in the event that a veteran gets divorced and is awarded a VA disability settlement, they should be aware of what this means for their benefits.

In this case the most important question is whether disability payments count as assets which can be divided in a divorce. This question has been answered in two ways. A Colorado court of appeals ruling declared that VA disability payments were not property and therefore could not be divided in this way. Another method is a U.S. Supreme Court ruling in Howell which ruled 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 concern relating to this issue is the handling of disability benefits to children for support and maintenance. Both the USFSPA, and the Supreme Court, veterans disability prohibit states from counting disability benefits as income. Certain states employ different approaches. For instance, Colorado adds up all sources of income to determine how much in support a spouse needs and then adds disability payments to take account that they are tax-free.

It is also important that veterans disability law firm know how divorce can affect their disability benefits and how their spouses who divorced could slash their benefits. By being aware of these issues, vets can safeguard their benefits and avoid any unintended consequences.