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How a Veterans Disability Settlement Can Affect a Divorce Case

Jim's 58 year old client is permanently disabled as a result of his service in the military. He receives a monthly pension benefit from the Department of veterans disability lawsuit Affairs.

He would like to know how the jury's verdict will affect his VA benefits. It will not. However, it will affect the other sources of income he earns.

Can I claim compensation in the event of an accident?

If you've been in the military and are now permanently disabled because of injuries or illnesses, you may be eligible for a veterans disability attorneys disability settlement. This settlement will pay you for medical bills, lost income, and other expenses that resulted from your illness or Veterans Disability Settlement injury. The kind of settlement you will receive will depend on whether your illness or injury is related to service, what VA benefits you are eligible for, as well as the cost to treat your accident or injury.

For example, Jim is a 58-year old veteran who was diagnosed with permanent disabilities based on two years of service during the Vietnam War. He hasn't got enough work space to qualify for Social Security disability benefits but the VA Pension benefit, which offers cash and medical treatment for free that is based on financial need. He wants to be aware of whether a personal injury settlement would affect his eligibility to receive this benefit.

The answer is contingent upon whether the settlement is a lump-sum or a structured one. Structured settlements are those that are made over a time period instead of in one payment, and the amount paid by the defendant is calculated to offset any existing VA benefits. In contrast, a lump sum payout is likely to affect any existing benefits because the VA considers it income and will annualize it. If Jim has extra assets after the settlement has been annualized then he is eligible to receive the Pension benefit. However the assets must be below a minimum threshold that the VA has set to establish financial necessity.

Do I have to hire an attorney?

Many spouses, service members and former spouses are confused about VA disability compensation and its effect on money issues in a divorce case. In addition, some people believe that the Department of Veterans Affairs' compensation payments can be divided like a military pension divorce or are "off limits" in the calculation of child support and alimony. These misconceptions can result in financial mistakes that have serious repercussions.

It is possible to file a claim for disability benefits by yourself, but most disabled veterans will require the help of a skilled lawyer. A skilled veteran's disability lawyer can review your medical records and gather the necessary evidence needed to build a strong case at the VA. The lawyer can also file any appeals you might require to receive the benefits you deserve.

Moreover, most VA disability lawyers don't charge fees for consultations. The government will also pay the lawyer directly from your benefit of retroactive benefits. This is one of the benefits of the Equal Access to Justice Act. The proportion of retroactive past-due benefits your lawyer will receive should be outlined in your fee agreement. A fee agreement may stipulate that, for example, the government would pay the attorney up 20 percent of retroactive benefits. Any additional amount is your to pay.

Can I Garnish My VA Benefits?

When disabled veterans disability lawyer receive compensation from the VA it is received in the form of monthly payments. The funds are meant to compensate for the effects of diseases, Veterans Disability Settlement injuries or disabilities that were sustained or worsened during the veteran's service. The benefits for veterans with disabilities are subject to garnishment, just like any other income.

Garnishment allows a court order that an employer or government agency deduct funds from the paycheck of an individual who owes an obligation and pay it directly to the creditor. In the case of divorce, garnishment may be used to pay spousal support or child support.

There are certain situations where a veteran's benefits can be repaid. The most common scenario is that of a veteran who renounced his military retirement in order to receive disability compensation. In these situations the portion of the pension that is attributed to disability benefits could be garnished to meet family support obligations.

In other cases, a veteran’s benefits can also be seized in order to cover medical expenses or federal student loans that are over due. In these instances a judge can refer a case directly to the VA to obtain the information they require. The disabled veteran should consult an experienced attorney to secure their disability benefits. This will help them avoid being forced to rely on payday and private loan lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a major assistance to veterans disability litigation and their families, however they come with their own set of issues. If a person divorces and receives an VA settlement then they must know what this will do to their benefits.

In this context one of the major issues is whether or not disability benefits are considered assets that can be split in a divorce. This issue has been addressed in a variety of ways. A Colorado court of appeals ruling found that VA disability payments were not property and could not be divided in this way. Another method is the U.S. Supreme Court ruling in Howell which held that garnishing the veteran's VA disability payments to pay Alimony is against the Uniformed Services Former Spouses Protection Act (USFSPA).

Another issue that is related to this subject is the treatment of disability benefits to children for maintenance and support. Both the USFSPA and the Supreme Court, prohibit states from counting disability benefits as income. Certain states use an alternative approach. For instance, Colorado adds up all sources of income to determine the amount in support a spouse will need and then adds disability payments to take into account that they are tax free.

It is also essential to know how divorce can affect their disability compensation and how ex-spouses could take advantage of their compensation. If they are aware of these issues, veterans can safeguard their compensation and avoid unwanted consequences.