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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 time in the military. He receives a monthly pension benefit from the Department of veterans disability lawyers Affairs.

He wants to know how an award from a jury will impact his VA benefits. It will not. However, it will have an impact on his other sources of income.

Can I Get Compensation for an accident?

If you have served in the military but are now permanently disabled as a result of injuries or illnesses, you may be eligible for a veteran disability settlement. This settlement will help pay you for medical bills, lost income, and other expenses that resulted from your illness or injury. The type of settlement you can receive will depend on whether your condition is service-connected or non-service connected, what VA benefits you qualify for, and what your accident or veterans disability injury will cost to treat.

Jim who is a 58-year old Vietnam veteran was diagnosed with permanent disabilities due to his two years of service. He doesn't have enough work quarters to be eligible for Social Security disability benefits but the VA Pension benefit that offers medical care and cash dependent on financial need. He would like to determine if a personal accident settlement could affect his ability to be eligible for this benefit.

The answer is contingent upon whether the settlement is in the form of either a lump sum or structured settlement. Structured settlements are the ones that are paid over a long period of time rather than in a single payment and the amount received by the defendant is calculated to offset any existing VA benefits. A lump sum payment will affect any existing VA benefits because the VA will annually evaluate and consider it as income. If Jim has excess assets after the settlement has been annualized then he is eligible to be eligible for the pension benefit. However the assets must be below a threshold the VA has determined to be a financial necessity.

Do I need to hire an attorney?

Many spouses, military personnel, and former spouses are concerned about VA disability benefits and their impact on financial issues during a divorce. There are many other reasons, but some people believe that the Department of Veterans Affairs' compensation payments can be split like a pension from a military service in divorce or are "off limits" in calculation of child support and alimony. These misconceptions can result in financial mistakes that can have grave consequences.

It is possible to submit an application for disability benefits by yourself however, the majority of disabled veterans will benefit from the assistance from a competent lawyer. A veteran's disability lawyer who is experienced will examine your medical records and gather all the necessary evidence to support your argument to the VA. The lawyer will also be able to file any appeals that you require to obtain the benefits you deserve.

Most VA disability lawyers don't charge for consultations. In addition, the lawyer will generally be paid by the government directly out of your award of retroactive past-due benefits. This is a benefit of the Equal Access to Justice Act. The proportion of retroactive past-due benefits that your lawyer will receive should be clearly stated in your fee agreement. A fee agreement may stipulate that, for example, the government will provide the attorney with 20% of retroactive benefits. You will be accountable for any additional costs.

Can I Garnish My VA Benefits?

If a disabled veteran is granted compensation from the VA the compensation is paid in the form of monthly payments. These payments are designed to compensate for the effects of illnesses, injuries or disabilities sustained or worsened during the veteran's time of service. Like all incomes, veterans disability attorney disability benefits can be subject to garnishment.

Garnishment permits a court order that an employer or government agency stop funds from the paycheck of a person who is in the process of paying an amount and then pay it directly to a creditor. In the case of a divorce, garnishment could be used to pay for spousal support or child support.

However, there are a few situations in which a veteran's disability benefits are able to be garnished. Most often, it is the case of a veteran who has renounced his military retirement in order to receive disability compensation. In these instances the portion of the pension that is attributed to disability benefits may be garnished for family support obligations.

In other instances, a veteran's benefits can be garnished to pay for medical expenses or past due federal student loans. In these cases the court might be able to direct the case to the VA to get the required information. It is essential for a disabled veteran to work with a reputable lawyer to ensure that their disability benefits are not removed. This can stop them from having to rely on payday lenders and private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a major help for veterans and their families, but they don't come without their own set of issues. For example in the event that a veteran gets divorced and receives a VA disability settlement, they must be aware of what this means for the benefits they receive.

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

Another issue that is related to this topic is the treatment of disability benefits to children for maintenance and support. The USFSPA and the Supreme Court both forbid states from counting disability payments as income to be used for this purpose. However, some states have taken an alternative approach. For instance, Colorado adds up all sources of income to determine the amount in support a spouse requires and then pluses up the disability payments to take into account that they are tax free.

Additionally, it is essential for veterans to know how their disability benefits will be affected if they get divorced and how their spouses' ex-spouses could take advantage of their benefits. By knowing about these issues, veterans can protect their income and avoid unwanted consequences.