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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 is able to receive a monthly pension from the Department of Veterans Affairs.

He would like to find out if a verdict from a jury will affect his VA benefits. It will not. It will, however, have an impact on the income sources of his other income sources.

Can I get compensation in the event of an accident?

You may be eligible to receive a settlement if you were a soldier but are now permanently disabled as a result of injuries or illnesses. This settlement will pay you for medical expenses, lost income and other expenses resulting from your injury or sickness. The kind of settlement you'll be able to receive depends on whether your medical condition is service-connected, or not connected, what VA benefits you qualify for, and how much your accident or injury 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. Jim does not have enough space for work to qualify for Social Security Disability benefits, however, he can claim an VA Pension that offers cash and medical treatment for free based on his financial need. He wants to be aware of how a personal injury settlement will affect his ability to benefit from this benefit.

The answer depends on whether the settlement is in the form of either a lump sum or structured settlement. Structured settlements are payments made over a time frame rather than as a single payment and the amount received by the defendant is used to offset any existing VA benefits. A lump sum payment will likely affect existing benefits since the VA considers it a tax-deductible income and will annually increase it. If Jim has surplus assets after the settlement has been annualized, he can reapply to receive the Pension benefit. However the assets he has to be below a minimum threshold that the VA has set to establish financial necessity.

Do I Need to Hire an attorney?

Many spouses, service members and former spouses are confused about VA disability compensation and the impact it has on the financial aspects of divorce cases. In addition, some people believe that the Department of veterans disability attorneys Affairs' compensation payments can be divided like a military pension divorce or are "off limits" in calculation of child support and alimony. These misconceptions could lead to grave financial errors.

It is possible to file a claim for disability benefits yourself, but most disabled veterans disability law firm will require the help of a skilled lawyer. A disability attorney for veterans can examine your medical records to gather the evidence needed to argue your case in front of the VA. The lawyer can also file any appeals that you might need to get the benefits you deserve.

Moreover, most VA disability lawyers charge no fees for consultations. The government also pays the lawyer directly from the award of retroactive benefits. This is a benefit of the Equal Access to Justice Act. The fee agreement should clearly specify the percentage of retroactive benefits that will be paid to your lawyer. For example an agreement on fees could specify that the government will pay the attorney up to 20% of the retroactive benefits or give. Any additional amounts are your the responsibility of the attorney.

Can I Garnish My VA Benefits?

When disabled Veterans Disability Law Firms receive compensation from the VA the compensation is paid in the form of monthly payments. The payments are meant to alleviate some of the effects of disabilities, diseases or injuries incurred during or aggravated during a veteran's military service. The veterans disability benefits are subject to garnishment just like other incomes.

Garnishment is a legal procedure that permits a court to decide that an employer or a government agency to take money from the pay of someone who is in debt and to send them directly to an individual creditor. In the case of divorce, garnishment can be used to pay spousal or child support or child support.

However, there are a few situations where disability benefits could be refunded. The most common scenario involves those who have renounced their military retirement to receive disability compensation. In these scenarios the pension portion that is allocated to disability payments can be garnished to fulfill the 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 instances the court could go directly to the VA to obtain the information they require. It is important for disabled veterans to work with a reputable lawyer to ensure that their disability benefits are not garnished. This can prevent them from relying on payday lenders or private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a huge assistance to veterans and their families. However they also come with specific complications. If a veteran divorces and receives a VA settlement then they must be aware of the impact this could have to the benefits they receive.

In this context the most important question is whether or not disability benefits are considered assets that can be divided during a divorce. This issue has been settled in a couple of ways. A Colorado court of appeals ruling decided that VA disability payments were not property and could not be divided this manner. The other way is by an U.S. Supreme Court ruling in Howell which held that garnishing a veteran's VA disability benefits to pay the payment of alimony is in violation of the Uniformed Services Former Spouses Protection Act (USFSPA).

Another concern related to this subject is how disability benefits are interpreted in the context of child maintenance and support. Both the USFSPA as well as the Supreme Court, prohibit states from counting disability benefits as income. Certain states employ a different approach. Colorado for instance takes all income sources together to determine the amount needed to support a spouse. The state then adds disability income in order to take into account their tax-free status.

Additionally, it is essential for veterans to be aware of how their disability benefits will be affected if they get divorced and how their ex-spouses can garnish their compensation. By being aware of these issues, vets can ensure their compensation as well as avoid any unintended consequences.