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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 because of his military service. He receives a monthly pension benefit from the Department of Veterans Affairs.

He would like to know how an award from a jury will impact his VA benefits. The answer is not. However, it could have an impact on the other sources of income he has.

Can I get compensation for an accident?

If you have served in the military, and are permanently disabled due to injuries or illnesses, you may be eligible for a veterans disability lawsuit disability settlement. This settlement will pay you for medical expenses, lost income and other expenses resulting from your illness or injury. The kind of settlement you will receive will depend on whether your injury or illness is service-connected, what VA benefits you are eligible for, and the cost to treat your injury or accident.

Jim who is a 58-year old Vietnam veteran, was diagnosed as having permanent disabilities because of his two years of service. He does not have enough space for work to qualify for Social Security Disability benefits, but he has a VA Pension that provides cash and medical treatment for free based on his financial need. He would like to be aware of how a personal injury settlement can affect his ability to be eligible for this benefit.

The answer depends on if the settlement is a lump-sum or a structured one. Structured settlements require payments over time, rather than a single payment. The amount paid by the defendant is calculated to offset the existing VA benefits. A lump sum settlement will probably alter any existing benefits as the VA considers it a tax-deductible income and will annually increase it. In either case, if excess assets are left over after the twelve month period when the settlement is annualized Jim could be eligible for a new Pension benefit, but only if his assets are below a threshold that the VA accepts as establishing financial need.

Do I need to hire an attorney?

Many spouses, service members and former spouses are confused about VA disability compensation and its impact on financial issues in divorce cases. In addition, some people think that the Department of Veterans Affairs' compensation payments can be split like a military pension in divorce or are "off limits" in calculation of child support and Alimony. These misconceptions could lead to financial mistakes that can have grave consequences.

While it is possible to file an initial claim for disability benefits on your own, many disabled veterans benefit from the help of a qualified attorney. A veteran's disability attorney will review your medical records to gather the evidence required to make a strong case before the VA. The lawyer can also help to file any appeals that you require to receive the benefits you deserve.

Additionally, the majority of 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 fee agreement should clearly state the proportion of retroactive benefits that will be paid to your lawyer. For instance your fee agreement may provide that the government can pay the attorney up to 20% of retroactive benefits or pay. The attorney is responsible for any additional amounts.

Can I Garnish My VA Benefits?

The VA pays a monthly amount of compensation to disabled veterans. The funds are intended to alleviate some of the effects of disability, illness or injuries sustained or aggravated by the veteran's military service. The benefits for veterans disability lawyers' disability are subject to garnishment just like any other income.

Garnishment permits a court order that an employer or a government agency withhold money from the wages of a person who is in the process of paying an obligation and pay it directly to the creditor. In the event of a divorce garnishment can be used for child or Veterans Disability Settlement spousal maintenance.

However, there are some situations in which a veteran's disability benefits can be repaid. Most often, it is the case of a veteran who renounced his military retirement to receive disability compensation. In these scenarios the part of pension that is allocated to disability benefits can be garnished in order to pay for family support obligations.

In other cases the benefits of a veteran can be seized to pay medical expenses or past-due federal student loans. In these situations the court may be able to direct the case to the VA to get the required information. It is vital for disabled veterans to find a competent attorney to ensure that their disability benefits aren't removed. This can help them avoid being forced to rely on payday loans or private loans. lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a huge assistance to veterans and their families. However, they come with their own set of complications. For instance when a veteran is 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 context is whether or not the disability payments count as divisible assets in divorce. The issue has been resolved in a couple of ways. One option is a Colorado court of appeals decision, which found that VA disability payments are not property and therefore cannot be divided in that way. The U.S. Supreme Court ruled in Howell, that garnishing a veteran’s VA disability payments to pay the purpose of alimony was in violation of USFSPA.

Another concern related to this topic is the treatment of disability benefits to children for support and maintenance. Both the USFSPA as well as the Supreme Court, prohibit states from counting disability benefits as income. However, certain states have taken different approaches. Colorado is one example. It adds all income sources together to determine the amount required to provide for a spouse. Colorado then adds disability income in order to take into account their tax-free status.

It is also important for veterans disability lawsuit to understand how their disability benefits will be affected when they get divorced and how their spouses who divorced them can be able to garnish their compensation. By being aware of these issues, veterans can ensure their compensation and avoid the unintended consequences.