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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 impact his VA benefits. The answer is that it will not. It will, however, affect his other sources of income.

Can I get compensation for an accident?

You may be eligible for a settlement if you were a soldier but are now permanently disabled because of injuries or illnesses. This settlement will pay you for medical bills, lost income and other expenses that resulted from your injury or sickness. The type of settlement you can get depends on whether or not your condition is service-connected or non-service connected, what VA benefits you are eligible for, and what your accident or injury will cost to treat.

Jim, a 58 year old Vietnam veteran, was diagnosed as having permanent disabilities due to his two years of service. He does not have enough work space to be eligible for Social Security disability benefits but there is a VA Pension benefit, which offers cash and free medical care based on financial need. He would like to find out if a personal injury settlement would affect his ability be eligible for this benefit.

The answer is dependent on whether the settlement is a lump sum or a structured one. Structured settlements require the payment of over time rather than one payment. The amount paid by the defendant is calculated to offset the existing VA benefits. A lump sum settlement will affect any existing VA benefits as the VA will annually assess and count it as income. In any case, if there are excess assets are left after the twelve-month period when the settlement has been annualized Jim could reapply for the Pension benefit, but only if his assets are below a threshold that the VA is able to agree establishes financial need.

Do I really need to hire an Attorney?

Many spouses, military personnel and former spouses are concerned about VA disability payments and their impact on money issues in divorce. Some people believe, for instance, that Department of Veterans Affairs compensation payments can be divided like military retirements in a divorce case or that they're "off limits" when calculating child support and alimony. These misconceptions could lead to serious financial errors.

While it is possible to submit 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 will examine your medical records and gather the necessary evidence to present a strong argument to the VA. The lawyer can also file any appeals that you may require to receive the benefits you are entitled to.

Furthermore, the majority of VA disability lawyers don't charge fees for consultations. In addition the lawyer will usually be paid by the government directly from your retroactive past-due benefits. This is a benefit of the Equal Access to Justice Act. The proportion of retroactive past-due benefits your lawyer will be paid must be specified in your fee agreement. For instance, a fee agreement can state that the government will pay the attorney up to 20% of retroactive benefits or give. You will be accountable for any additional costs.

Can I Garnish My VA Benefits?

The VA pays monthly compensation to disabled veterans disability lawyer. The funds are intended to help offset the effects of disability, illness, or injuries sustained during or aggravated by the veteran's military service. As with all income, veterans disability benefits can be subject to garnishment.

Garnishment is a legal action which allows a court make an order to an employer or government agency to withhold funds from the wages of a person who owes money and transfer them directly to a creditor. In the event of divorce, garnishment can be used for child or spousal care.

There are situations where the benefits of a veteran can be garnished. The most common scenario involves veterans who have waived their military retirement in order to receive disability compensation. In these cases the amount of pension apportioned to disability pay can be garnished to pay family support obligations.

In other situations, veteran’s benefits can also be seized in order to pay for medical expenses or federal student loans that are over due. In these cases the court could go directly to the VA for the information they require. A disabled veteran should employ an experienced attorney to secure their disability benefits. This will help them avoid having to rely on payday and private loan lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a huge help to veterans as well as their families. However they also come with their own set complications. For instance the case where a veteran is divorced and is awarded a VA disability settlement, they need to know what effect this will have on the benefits they receive.

One of the major issues in this regard is whether disability payments are considered to be divisible assets in divorce. The issue has been resolved in a variety of ways. A Colorado court of appeals decision found that VA disability payments were not property and could not be divided this manner. The U.S. Supreme Court ruled in Howell, that garnishing a veteran’s VA disability payments for Alimony was against the USFSPA.

Another concern related to this subject is how disability benefits are treated to determine child maintenance and support. The USFSPA and the Supreme Court both forbid states from claiming disability benefits as income to be used for this purpose. Some states have different approaches. Colorado for instance, takes all income sources together to determine the amount required to support a spouse. It then adds on disability payments to reflect their tax-free status.

It is also important that veterans understand how their disability benefits will be affected if they become divorced and how their spouses who divorced them can affect their compensation. By being aware of these questions, veterans disability law firm can guard their benefits and avoid unwanted consequences.