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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 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 will affect his other income sources.

Can I receive compensation in the event of an accident?

You may be eligible to receive a settlement if you have served in the military, but are now permanently disabled because of injuries or illnesses. This settlement could help you receive compensation for your medical bills, lost wages, and other costs resulting from your illness or injury. The type of settlement you'll get depends on whether or not your condition is service-connected or not connected, what VA benefits you are eligible for, as well as the amount your accident or injury will cost to treat.

For example, Jim is a 58-year veteran who was diagnosed with permanent disabilities based on two years of service during the Vietnam War. He does not have enough space for work to qualify for Social Security Disability benefits, however, he can claim the VA Pension, which provides cash and medical care for free dependent on the amount of money he needs. He would like to know if a personal injury settlement will affect his ability to receive this benefit.

The answer is contingent upon whether the settlement is a lump sum or a structured one. Structured settlements require the payment of over time instead of a single payment. The amount that defendant pays is calculated to offset existing VA benefits. A lump sum settlement will affect any existing VA benefits as the VA will annually calculate and consider it as income. In any event, if extra assets remain after the 12 month period after the settlement is annually recalculated, Jim may be eligible to apply again for the Pension benefit, but only if his assets fall lower than a threshold with which the VA is able to agree establishes financial need.

Do I need to hire an attorney?

Many service members, spouses and former spouses are confused about VA disability compensation and its effect on money issues in a divorce case. In addition, some people believe that the Department of veterans disability lawsuits Affairs' compensation payments can be divided as a military pension in divorce or are "off limits" in the calculation of child support and Alimony. These misconceptions can lead to financial errors that have serious consequences.

It is possible to submit a claim for disability benefits yourself however, the majority of disabled veterans will benefit from the assistance of a professional lawyer. A veteran's disability lawyer can look over your medical records and gather the evidence required to argue your argument before the VA. The lawyer can also file any appeals that you might need to receive the benefits you deserve.

Furthermore, the majority of VA disability lawyers do not charge fees for consultations. The government will also pay the lawyer directly from your benefit of retroactive 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 outlined in your fee agreement. For example an agreement on fees could provide that the government can pay the lawyer up to 20% of retroactive benefits or provide. Any additional amounts are your the responsibility of the attorney.

Can I Garnish My VA Benefits?

When disabled veterans receive compensation from the VA, it comes in the form of monthly payments. These payments are designed to alleviate some of the effects of disability, illness, or injuries sustained during or aggravated during a veteran's military service. Like other income sources, veterans disability benefits can be subject to garnishment.

Garnishment is a court-ordered procedure that an employer or a government agency withhold funds from the paycheck of an individual who owes an amount and then pay it directly to a creditor. In the event of a divorce garnishment can be used for child or spousal care.

However, there are some circumstances where a veteran's disability benefits could be garnished. The most common situation involves veterans who have waived their military retirement in order to claim disability compensation. In these scenarios the pension portion that is allocated to disability pay can also be garnished in order to fulfill the family support obligations.

In other instances, a veteran’s benefits can also be seized to pay medical expenses or federal student loans that are over due. In these situations, a court can go directly to the VA to obtain the information they require. A disabled veteran should employ an experienced attorney to protect their disability benefits. This can prevent them from relying on payday lenders or private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a huge assistance to veterans and their families, but they come with their own set-of complications. For example the case where a veteran is divorced and is awarded a VA disability settlement, they should know what effect this will have on the benefits they receive.

A major issue in this regard is whether disability payments are considered to be divisible assets in a divorce. The issue has been resolved in a variety of ways. A Colorado court of appeals decision determined that VA disability payments were not property and therefore could not be divided in this manner. Another method is an U.S. Supreme Court ruling in Howell which ruled that garnishing the veteran's VA disability payments to pay alimony is a violation of the Uniformed Services Former Spouses Protection Act (USFSPA).

Another issue that is related to this subject is the treatment of disability benefits to children for maintenance and support. The USFSPA and the Supreme Court both forbid states from claiming disability benefits as income for these purposes. Some states have different methods. For instance, Colorado adds up all sources of income to determine how much in support a spouse is entitled to and then adds disability payments to take into account that they are tax-free.

It is also important to know how divorce affects their disability compensation and how their spouses who divorced could slash their benefits. By being informed about these issues, vets can safeguard their benefits and avoid unintended consequences.