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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 because of his military service. He receives a monthly Pension benefit from the Department of veterans disability lawyer Affairs.

He wants to know how a jury award will impact his VA benefits. The answer is that it will not. But it will have an impact on the other sources of income he has.

Do I have the right to receive compensation in the event of an accident?

You could be eligible for a settlement in the event that you served in the military but are now permanently disabled as a result of injuries or illnesses. This settlement can help you get compensation for medical expenses, lost wages, and other costs resulting from your illness or injury. The type of settlement you can get will depend on whether the medical condition is service-connected, or not connected, the VA benefits you are eligible for, and how much your injury or accident will cost to treat.

Jim, a 58-year veteran of the Vietnam war was diagnosed with permanent disabilities due to his two years of service. He hasn't got enough work space to qualify for Social Security disability benefits but He does have a VA Pension benefit that provides medical care and cash dependent on financial need. He wants to understand what the implications of a personal injury settlement will affect his ability to receive this benefit.

The answer is dependent on whether the settlement is a lump sum or a structured one. Structured settlements are payments made over a period of time rather than a single payment, and the amount paid by the defendant is used to offset any existing VA benefits. A lump sum payment will likely affect existing benefits since the VA considers it income and will annualize it. In any event, if extra assets are left after the twelve month period when the settlement has been annualized Jim may be eligible to apply again for the pension benefit, but only if his assets fall below a threshold that the VA agrees establishes financial need.

Do I need to employ an attorney?

Many spouses, Veterans Disability Settlement 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 are split like military retirements in a divorce case or that they're "off limits" when calculating child support and alimony. These misconceptions can lead to serious financial errors.

While it is possible to submit an initial claim for disability benefits on your own, most disabled veterans disability case require the assistance of a professional lawyer. A veteran's disability lawyer who is experienced will review your medical records and gather all the necessary evidence to make a convincing case to the VA. The lawyer will also be able to submit any appeals you require to obtain the benefits you are entitled to.

Additionally, the majority of VA disability lawyers charge no fees for consultations. The government also pays the lawyer directly from the award of retroactive benefits. This is a benefit of the Equal Access to Justice Act. The fee agreement should clearly define the proportion of retroactive benefits that will be paid to your lawyer. For example your fee agreement may provide that the government can pay the lawyer up to 20% of the retroactive benefits or provide. Any additional amount is your obligation.

Can I Garnish My VA Benefits?

The VA pays a monthly amount of compensation to disabled veterans. The funds are meant to compensate for the effects of injuries, illnesses or disabilities that were suffered or worsened during the veteran's time of service. Like all income, the benefits for veterans disability attorneys with disabilities are subject to garnishment.

Garnishment can be a legal proceeding that allows a judge to make an order to an employer or government agency to take money from the pay of an employee who owes money and send them directly to a creditor. In the event of a divorce garnishment may be used to pay child or spousal support.

There are a few situations in which a veteran's disability benefits could be garnished. The most frequent is the veteran who has waived his military retirement to receive disability compensation. In these scenarios, the portion of pension that is allocated to disability benefits can be garnished to fulfill the family support obligations.

In other cases, a veteran’s benefits can also be seized to cover medical expenses or federal student loans that are past due. In these cases the court can go directly to the VA for the information they need. It is crucial for disabled veterans to retain a knowledgeable attorney to ensure that their disability benefits aren't garnished. 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 are an excellent help to veterans as well as their families. However they also come with their own set of complications. For example when a veteran is divorced and receives a VA disability settlement, they should know what this means for their benefits.

In this context one of the major issues is whether disability payments are considered assets that could be divided during a divorce. This issue has been settled in a variety of ways. A Colorado court of appeals ruling declared that VA disability payments were not property and could not be divided this way. Another method is a U.S. Supreme Court ruling in Howell which held that garnishing the 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 subject is how disability benefits are interpreted to determine child maintenance and support. Both the USFSPA, as well as the Supreme Court, prohibit states from utilizing disability benefits as income. However, some states have taken a different approach. Colorado, Veterans Disability Settlement for example, takes all income sources together to determine the amount required to support a spouse. It then adds on disability payments to account for their tax-free status.

Finally, it is important 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 being knowledgeable about these issues, veterans can protect their compensation and avoid unintended consequences.