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How a Veterans Disability Settlement Can Affect a Divorce Case

Jim's 58 year old client is permanently disabled due to his military service. He receives a monthly pension from the Department of Veterans Affairs.

He wants to find out if a verdict from a jury will affect his VA benefits. The answer is not. However, it will affect his other income sources.

Can I claim compensation in the event of an accident?

You could be eligible for a settlement in the event that you were a soldier but are now permanently disabled because of injuries or illnesses. This settlement can help compensate you for medical expenses, lost income and other expenses that resulted from your injury or sickness. The type of settlement that you will receive will depend on whether or not your injury or illness is related to service, Kenner veterans disability Attorney what VA benefits you qualify for, as well as the cost to treat your injury or accident.

For example, Jim is a 58-year veteran who was diagnosed with permanent disabilities based on two years of service in the Vietnam War. He does not have enough working space to be eligible for Social Security disability benefits but he does have a VA Pension benefit that offers cash and free medical care in accordance with financial need. He wants to find out if a personal injury settlement could affect his ability to get this benefit.

The answer will depend on whether the settlement is in the form of one lump sum or a structured settlement. Structured settlements are those that are made over a period of time rather than in a single payment and the amount paid by the defendant is calculated to offset any existing VA benefits. However, a lump sum settlement will probably alter any existing benefits as the VA considers it income and will annualize it. If Jim has excess assets after the settlement is annualized then he is eligible to receive the Pension benefit. However, his assets must be below a minimum threshold that the VA has set to establish financial necessity.

Do I need to hire an attorney?

Many spouses, service members and former spouses are confused about VA disability compensation and its effect on the financial aspects of divorce cases. Some people believe, for instance, that Department of Veterans Affairs compensation payments can be split like a military retirement in divorce proceedings or that they're "off limits" when it comes to calculating child support and Alimony. These misconceptions can lead to grave financial errors.

It is possible to submit an application for disability benefits by yourself however, the majority of disabled veterans will require the help from a competent lawyer. A skilled veteran's disability lawyer will review your medical records and gather all the necessary evidence to support your case at the VA. The lawyer will also be able to file any appeals you may require to secure the benefits you're entitled to.

Most VA disability lawyers do not charge for consultations. The government also pays the lawyer directly from your amount of retroactive benefits. This is a benefit 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 could say for instance that the government would give the attorney up to 20 percent of retroactive benefits. You are responsible for any additional costs.

Can I Garnish My VA Benefits?

The VA provides monthly compensation to disabled veterans. The purpose of the payments is to compensate for the effects of diseases, injuries or disabilities sustained or worsened during the veteran's time of service. The kenner veterans Disability attorney disability benefits are subject to garnishment, just like any other income.

Garnishment is a court-ordered procedure that an employer or government agency deduct money from the wages of a person who is in the process of paying a debt and send it directly to the creditor. In the case of a divorce, garnishment can be used to pay spousal support or child support.

There are a few circumstances where a veteran's disability benefits could be refunded. The most common scenario is a veteran who waived their military retirement to receive disability compensation. In these situations, the portion of the pension allocated to disability payments can be garnished for family support obligations.

In other circumstances, veteran’s benefits can also be garnished to pay for medical expenses or federal student loans that are over due. In these cases a court may be able to directly to the VA to obtain the necessary information. It is important for disabled veterans to find a competent lawyer to ensure that their disability benefits aren't taken away. This can stop them from having to rely on payday lenders or private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be an enormous help for de soto veterans disability attorney and their families, but they're not without their own set of challenges. For example in the event that a veteran gets divorced and is awarded an VA disability settlement, they should know what this means for the benefits they receive.

In this regard one of the major issues is whether disability benefits are considered assets that could be divided during a divorce. The issue has been resolved in a couple of ways. A Colorado court of appeals ruling decided that VA disability payments were not property and could not be divided this manner. The other way is by the U.S. Supreme Court ruling in Howell which ruled that garnishing a veteran's VA disability payments to pay the payment of alimony is in violation of the Uniformed Services Former Spouses Protection Act (USFSPA).

Another issue related to this topic is how the disability benefits are interpreted for purposes of child support and maintenance. Both the USFSPA and the Supreme Court, prohibit states from counting disability benefits as income. Certain states employ different methods. Colorado is one example. It adds all sources of income together to determine the amount required to support a spouse. The state then adds disability income to account for their tax-free status.

It is also important that yuma veterans disability attorney understand the impact divorce has on their disability benefits and how their ex spouses can garnish their compensation. By being informed about these issues, vets can protect their income and avoid unintended consequences.