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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 time in the military. He receives a monthly Pension benefit from the Department of Veterans Affairs.

He wants to know if a verdict of a juror will impact his VA benefits. The answer is that it will not. However, it will have an impact on the other sources of income he earns.

Can I Get Compensation in the event of an accident?

If you have served in the military and are permanently disabled as a result of injuries or illnesses, you may be eligible for a veteran disability settlement. This settlement can help compensate you for medical bills, lost income and other expenses that resulted from your injury or sickness. The type of settlement that you could receive will depend on whether your injury or illness is related to service, what VA benefits you qualify for, and the amount you will need to treat your injury or accident.

For instance, Jim is a 58-year veteran who was diagnosed with permanent disabilities based on two years of service during the Vietnam War. He doesn't have enough work space to be eligible for Social Security Disability benefits, however, he is able to claim the VA Pension which offers cash and medical treatment for free dependent on the amount of money he needs. He would like to know how a personal injury settlement could affect his eligibility to benefit from this benefit.

The answer is dependent on whether the settlement is a lump sum or a structured one. Structured settlements require payments over a period of time instead of one payment. The amount paid by the defendant is calculated to offset existing VA benefits. However, a lump sum settlement will probably impact any benefits already in place because the VA considers it a tax-deductible income and will annually increase it. If Jim has surplus assets after the settlement is annually adjusted then he is eligible to receive the Pension benefit. However the assets he has to be below a threshold 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 financial issues in a divorce case. Among other things, some people think that the Department of Veterans Affairs' compensation payments can be divided like a military pension in a divorce or that they are "off limits" when it comes to calculation of child support and alimony. These misconceptions can lead to financial mistakes which can have serious consequences.

It is possible to submit a claim for disability benefits on your own however, the majority of disabled veterans would require the help of a qualified lawyer. A veteran's disability attorney can review your medical records to collect the evidence necessary to prove your case before the VA. The lawyer can also help to make any appeals you require to obtain the benefits you deserve.

The majority of VA disability lawyers don't charge for consultations. Additionally the lawyer will usually be paid by the government directly out of the retroactive past-due benefits. This is an advantage of the Equal Access to Justice Act. The amount of retroactive past due benefits that your lawyer will receive should be clearly outlined in your fee agreement. For example the fee agreement could stipulate that the government will pay the lawyer up to 20% of retroactive benefits or give. The attorney is responsible for any additional amount.

Can I Garnish My VA Benefits?

The VA pays monthly compensation to disabled veterans. These payments are designed to offset some of the consequences of illnesses, disabilities or injuries that are sustained or aggravated by a veteran's military service. As with all income, veterans disability benefits can be subject to garnishment.

Garnishment allows a court order that an employer or a government agency withhold money from the wages of a person who has a debt and send it directly to the creditor. In the event of divorce, the garnishment could be used for child or spousal care.

However, there are a few situations in which a veteran's disability benefits are able to be repaid. The most frequent is the veteran who renounced his retirement from the military in order to receive disability compensation. In these cases the amount of pension that is allocated to disability pay may be garnished for family support obligations.

In other situations, veteran’s benefits can also be garnished in order to pay medical bills or federal student loans that are past due. In these cases the court could go directly to the VA to obtain the information they need. It is vital for disabled veterans disability lawsuit to retain a knowledgeable lawyer to ensure that their disability benefits aren't removed. This will stop them from relying on payday lenders or private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a big aid to veterans and their families, however they don't come without their own set of complications. For instance in the event that a veteran gets divorced and is awarded an VA disability settlement, they need to know how this will affect their benefits.

One of the major issues in this regard is whether or not the disability benefits are considered divisible assets in divorce. This issue has been addressed in a variety of ways. A Colorado court of appeals decision declared that VA disability payments were not property and therefore could not be divided in this way. The U.S. Supreme Court ruled in Howell, that garnishing a veteran's VA disability benefits for the purpose of alimony was in violation of USFSPA.

Another concern relating to this subject is the treatment of disability benefits to children for support and maintenance. The USFSPA and the Supreme Court both forbid states from counting disability benefits as income for these purposes. Certain states use an alternative approach. For instance, Colorado adds up all sources of income to determine the amount in support a spouse requires and then adds the disability payments to take account that they are tax free.

It is also important that veterans understand the impact divorce has on their disability compensation and how their spouses who divorced can slash their income. By being knowledgeable about these issues, veterans can ensure the security of their income and avoid unwanted consequences.