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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 how an award from a jury will affect his VA benefits. It won't. But it will have some impact on the other sources of income he has.

Can I Get Compensation for an accident?

You may be eligible for a settlement if served in the military but are now permanently disabled as a result of injuries or illnesses. This settlement will allow you to receive compensation for your medical expenses, lost wages, and other expenses related to your illness or injury. The type of settlement you can receive will depend on whether or not your illness or injury is service-related, what VA benefits you qualify for, and the amount you will need to treat your injury or accident.

Jim is a 58 year veteran of Vietnam was diagnosed with permanent disabilities due to his two years of service. He does not have enough working space to qualify for Social Security disability benefits but he does have a VA Pension benefit which provides cash and free medical assistance that is based on financial need. He would like to be aware of whether a personal injury settlement will affect his ability to receive this benefit.

The answer will depend on whether the settlement is in the form of a lump sum or a structured settlement. Structured settlements are those that are made over a period of time instead of in one payment and the amount paid by the defendant is used to offset any existing VA benefits. A lump sum payment can impact any existing VA benefits as the VA will annually assess and count it income. If Jim has assets that are not used up after the settlement is annualized then he is eligible to receive the Pension benefit. However, his assets must be under a limit that the VA has agreed establishes financial necessity.

Do I need to hire an attorney?

Many spouses, service members and former spouses are concerned about VA disability payments and their effect on financial issues during divorce. Some people believe that the Department of veterans disability attorney Affairs' compensation payments can be split like a military pension in divorce or are "off limits" in the calculation of child support and Alimony. These misconceptions could lead to financial mistakes that have serious repercussions.

While it is possible to do an initial claim for disability benefits on your own, most disabled veterans benefit from the help of a qualified lawyer. A veteran's disability lawyer who is experienced can review your medical documents and Veterans Disability Settlement gather the required evidence to present a strong argument to the VA. The lawyer can also file any appeals you may need in order to receive the benefits you are entitled to.

Moreover, most VA disability lawyers don't charge fees for consultations. In addition, the lawyer will generally be paid by the government directly out of your retroactive past due benefits. This is an advantage of the Equal Access to Justice Act. The amount of retroactive past-due benefits your lawyer will receive should be clearly stated in your fee agreement. A fee agreement may stipulate that, for example, the government will pay the attorney up 20 percent of retroactive benefits. Any additional amount is your the responsibility of the attorney.

Can I Garnish My VA Benefits?

The VA provides monthly compensation to disabled veterans disability attorneys. The payments are intended to compensate for the effects of injuries, diseases or disabilities that have been sustained or worsened during the veteran's service. The benefits for veterans disability case with disabilities are subject to garnishment, as is any other income.

Garnishment is a legal action that allows a judge to decide that an employer or a government agency to take money from the pay of someone who owes money and send them directly to the creditor. In the event of divorce, garnishment can be used for child or spousal maintenance.

However, there are a few situations where disability benefits may be garnished. The most frequent is the veteran who renounced his retirement from the military in order to receive disability compensation. In these instances the part of pension that is allocated to disability benefits can be garnished to meet family support obligations.

In other situations, veteran's benefits could be seized in order to pay for medical expenses or federal student loans that are past due. In these instances a court may be able to go straight to the VA to get the required information. It is vital for Veterans Disability Settlement disabled veterans disability attorneys to hire a knowledgeable attorney to ensure that their disability benefits aren't removed. This can help them avoid having to rely on private loans and payday lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a huge assistance to veterans disability lawyers and their families, but they do come with their own set of challenges. If a veteran is divorced and receives an VA settlement then they must be aware of what this might do to their benefits.

A major issue in this context is whether disability benefits are considered divisible assets in divorce. This question has been answered in two ways. One option is an Colorado court of appeals ruling that concluded that VA disability payments are not property and cannot be divided as such. The U.S. Supreme Court ruled in Howell, that garnishing a veteran's VA disability benefits for alimony was a violation of USFSPA.

Another concern that is related to this issue 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 use an alternative approach. For instance, Colorado adds up all sources of income to determine how much in support a spouse requires and then adds up the disability benefits to take into the fact that they are tax-free.

Additionally, it is essential for veterans to understand how their disability benefits will be affected if they are divorced and how their ex-spouses may be able to garnish their compensation. By being informed about these issues, veterans can safeguard their benefits as well as avoid unintended consequences.