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How a Veterans Disability Settlement Can Affect a Divorce Case

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

He wants 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 the income sources of his other income sources.

Can I receive compensation in the event of an accident?

If you have served in the military and are now permanently disabled as a result of injuries or illnesses, you could be eligible for a veterans disability settlement. This settlement will pay you for medical bills, lost income, and other expenses that resulted from your illness or injury. The type of settlement you can receive depends on whether your health condition is non-service connected, what VA benefits you are eligible for, and how much your injury or accident will cost to treat.

Jim who is a 58-year old Vietnam veteran was diagnosed with permanent disabilities because of his two years of service. He does not have enough working space to be eligible for Social Security disability benefits but the VA Pension benefit that offers medical care and cash that is based on financial need. He would like to be aware of whether a personal injury settlement will affect his ability to be eligible for this benefit.

The answer is dependent on whether the settlement is in the form of a lump sum or a structured settlement. Structured settlements consist of payments over a period of time, rather than one lump sum payment. The amount that defendant pays is calculated to offset the existing VA benefits. A lump sum settlement can affect any existing VA benefits as the VA will annually calculate and consider it to be income. If Jim has extra assets after the settlement is annualized the applicant can apply again to receive the Pension benefit. However the assets must be below a minimum threshold that the VA has agreed establishes financial necessity.

Do I have to hire an attorney?

Many spouses, service members and former spouses are confused about VA disability compensation and the impact it has on money issues in a divorce case. There are many other reasons, but some people think that the Department of Veterans Affairs' compensation payments can be split like a military pension in a divorce or that they are "off limits" in the calculation of child support and alimony. These misconceptions could lead to financial mistakes which can have serious consequences.

While it is possible to submit an initial claim for disability benefits by yourself, the majority of disabled veterans get the assistance of a skilled attorney. A veteran's disability attorney will review your medical records to collect the evidence necessary to prove your case to the VA. The lawyer will also be able to make any appeals you require to secure the benefits you deserve.

Most VA disability lawyers don't charge for consultations. The government also pays the lawyer directly from the benefit of retroactive benefits. This is a benefit of the Equal Access to Justice Act. The proportion of retroactive past-due benefits that your lawyer will receive should be clearly outlined in your fee agreement. A fee agreement could state, for example, that the government would give the attorney up to 20 percent of retroactive benefits. The attorney is responsible for any additional sums.

Can I Garnish My VA Benefits?

The VA provides monthly compensation to disabled veterans. The payments are meant to compensate for some of the effects of disabilities, diseases or injuries that are sustained or aggravated by the veteran's military service. Like all incomes, veterans disability benefits can be subject to garnishment.

Garnishment is a court-ordered procedure that an employer or a government agency withhold funds from the paycheck of a person who owes an amount and then pay it directly to the creditor. In the event of divorce, garnishment can be used for child or spousal care.

There are some situations where the benefits of a veteran can be encashable. The most common scenario involves those who have renounced their military retirement to receive disability compensation. In these instances, the portion of the pension allocated to disability payments may be garnished for family support obligations.

In other circumstances veterans' benefits could be seized to pay medical expenses or past-due federal student loans. In these instances, a court can go directly to the VA for the information they require. A disabled veteran should employ an experienced lawyer to protect their disability benefits. This will prevent them from having to rely on payday loans or private loans. lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a big assistance to veterans and their families, however they're not without their own set of issues. If a veteran divorces and receives an VA settlement then they must be aware of the implications to the benefits they receive.

In this case, the main question is whether disability payments count as assets that can be split in divorce. This question has been resolved in two ways. A Colorado court of appeals decision determined that VA disability payments were not property and therefore could not be divided in this manner. Another method is an U.S. Supreme Court ruling in Howell which held that garnishing the veteran's VA disability payments to pay for the payment of alimony is in violation of the Uniformed Services Former Spouses Protection Act (USFSPA).

Another concern that is related to this topic is how the disability benefits are treated for purposes of child support and maintenance. The USFSPA and the Supreme Court both forbid states from counting disability payments as income for these purposes. However, some states have taken an alternative approach. Colorado, for example, adds all sources of income together to determine the amount needed to provide for a spouse. Colorado then adds on disability payments in order to account for their tax-free status.

It is also important to know the impact divorce has on their disability benefits and how their spouses who divorced could take advantage of their compensation. By being knowledgeable about these issues, veterans can protect their earnings and avoid any unwanted consequences.