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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 from the Department of Veterans Affairs.

He wants to know if an award from a jury will affect his VA benefits. It won't. It will, however, affect his other sources of income.

Do I have the right to receive compensation for an accident?

If you've served in the military and are permanently disabled as a result of injuries or illnesses, you may be eligible for a veteran disability settlement. This settlement can assist in compensating you for medical bills, lost income, and other costs that resulted from your injury or sickness. The kind of settlement you are eligible for will depend on whether or not your illness or injury is service-related, what VA benefits you are eligible for, and 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 isn't in a position to have enough work space to be eligible for Social Security Disability benefits, however, he does have an VA Pension that offers cash and medical treatment for free depending on the financial needs of his. He would like to find out if a personal injury settlement would affect his eligibility to get this benefit.

The answer will depend on whether the settlement is a lump-sum or a structured one. Structured settlements are payments made over a time period rather than in a single payment and the amount received by the defendant is used to offset any existing VA benefits. A lump sum settlement will probably affect any existing benefits because the VA considers it a tax-deductible income and will annually increase it. In any event, if extra 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 agrees establishes financial need.

Do I require an Attorney?

Many spouses, military personnel, and former spouses are confused about VA disability compensation and its effect on money issues in a divorce case. Among other things, some people believe that the Department of veterans disability law Firms Affairs' compensation payments can be split like a military pension in divorce or are "off limits" when it comes to calculation of child support and veterans Disability law firms Alimony. These misconceptions can lead to financial mistakes that have serious consequences.

While it is possible to make an initial claim for disability benefits on your own, many disabled veterans can benefit from the help of a qualified lawyer. A veteran's disability lawyer can look over your medical records and gather the necessary evidence to present a convincing case to the VA. The lawyer can also file any appeals that you might require to receive the benefits you are entitled to.

In addition, the majority of VA disability lawyers don't charge fees for consultations. Additionally the lawyer will usually 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 amount of retroactive past-due benefits your lawyer will receive should be clearly stated in your fee agreement. For instance the fee agreement could provide that the government can pay the lawyer up to 20% of the retroactive benefits or provide. Any additional amounts are your responsibility.

Can I Garnish My VA Benefits?

If a disabled veteran receives compensation from the VA, it comes in the form of monthly payments. The purpose of the payments is to compensate for veterans disability law Firms the effects of injuries, diseases or disabilities sustained or aggravated by a veteran's time of service. Like other income sources, veterans disability benefits are subject to garnishment.

Garnishment is a court-ordered procedure that an employer or government agency stop money from the wages of a person who has an obligation and pay it directly to the creditor. In the event of a divorce, garnishment could be used to pay for spousal support or child support.

There are situations where a veteran's benefits can be garnished. The most common scenario involves a veteran who waived their military retirement in order to receive disability compensation. In these instances, the amount of pension that is attributed to disability benefits could be garnished to meet family support obligations.

In other cases, a veteran's benefit may 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 direct the case to the VA to get the required information. A disabled veteran should employ an experienced attorney to safeguard their disability benefits. This can help them avoid being forced to rely on private loans and payday lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a huge help for veterans and their families, but they're not without their own set of complications. For example when a veteran is divorced and receives an VA disability settlement, they need to know how this will affect their benefits.

In this context, the main question is whether disability benefits are considered assets that can be split in divorce. This question has been resolved in two ways. One option is an 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 for alimony was a violation of USFSPA.

Another concern with this issue is the handling of disability benefits for child maintenance and support. The USFSPA and the Supreme Court both forbid states from counting disability payments as income for these purposes. However, certain states have adopted the opposite approach. For instance, Colorado adds up all sources of income to determine how much in support a spouse needs and then adds up the disability benefits to take into account that they are tax-free.

In the end, it is crucial for veterans to understand how their disability benefits will be affected if they are divorced and how their spouses' ex-spouses could garnish their compensation. By being aware of these issues, veterans disability law firms can protect their income and avoid any unintended consequences.