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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 due to his military service. He gets 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. However, it will have an impact on his other sources of income.

Can I Receive Compensation in the event of an accident?

You may be eligible for a settlement in the event that you were in the military but are now permanently disabled because of injuries or illnesses. This settlement can help compensate you for medical expenses, lost income and other costs that resulted from your illness or injury. The type of settlement you can get depends on whether or not your condition is service-connected or non-service connected, the VA benefits you are eligible for, as well as the amount your accident or injury will cost to treat.

For instance, Jim is a 58-year old veteran who was diagnosed with permanent disabilities following two years of service during the Vietnam War. He doesn't have enough space for work to qualify for Social Security Disability benefits, but he has a VA Pension that provides free medical care and cash according to his financial need. He would like to determine if a personal accident settlement could affect his ability to be eligible for this benefit.

The answer is dependent on whether the settlement is a lump sum or a structured one. Structured settlements consist of the payment of over time rather than one single payment. The amount that defendant pays is calculated to offset the existing VA benefits. A lump sum settlement will probably affect any existing benefits because the VA considers it as income and will increase it. In any case, if there are excess assets are left over after the period of twelve months when the settlement has been annualized Jim could reapply for the Pension benefit, but only if his assets fall less than a minimum threshold that the VA determines to be a financial need.

Do I need to employ an attorney?

Many spouses, members of the military and former spouses have concerns about VA disability payments and their effect on financial issues during a divorce. Some people believe, among other things, that the Department of Veterans Affairs compensation payments can be split like military retirements in divorce cases, or that they're "off limits" when it comes to calculating child support and Alimony. These misconceptions can lead to financial mistakes which can have serious consequences.

It is possible to submit a claim for disability benefits on your own, but most disabled veterans disability case would benefit from the assistance from a competent lawyer. A veteran's disability attorney can examine your medical records to gather the evidence required to present a convincing case in front of the VA. The lawyer can also help to file any appeals that you require to receive the benefits you are entitled to.

Most VA disability lawyers do not charge for consultations. Additionally the lawyer will usually be paid by the government directly out of your award of retroactive past-due benefits. This is an advantage of the Equal Access to Justice Act. Your fee agreement should clearly specify the amount of retroactive benefits that will be paid to your lawyer. A fee agreement could state, for example, that the government would pay the attorney 20 percent of retroactive benefits. You are responsible for any additional amounts.

Can I Garnish My VA Benefits?

If a disabled veteran is granted compensation from the VA it is in the form of monthly payments. The funds are intended to help offset the effects of diseases, veterans Disability settlement disabilities, or injuries sustained during or aggravated by the veteran's military service. Like all income, the veterans disability case disability benefits can be subject to garnishment.

Garnishment can be a legal proceeding that permits a court to order an employer or government agency to deduct funds from the paycheck of a person who is in debt and to send them directly to the creditor. In the case of a divorce, garnishment could be used to pay spousal or child support or Veterans Disability Settlement child support.

However, there are a few circumstances where a veteran's disability benefits may be garnished. Most often, it is the case of a veteran who renounced his military retirement to receive disability compensation. In these situations the amount of pension that is devoted to disability compensation can be garnished in order to cover the obligations of family support.

In other instances, a veteran's benefits may also be garnished to pay medical expenses or federal student loans that are over due. In these cases the court may be able to directly to the VA to obtain the necessary information. It is vital for disabled veterans disability lawyer to work with a reputable lawyer to ensure that their disability benefits are not removed. This can help them avoid being forced to rely on payday loans and private loans. lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements are a tremendous help to veterans as well as their families. However they have their own set complications. If a person divorces and receives a VA settlement it is important to be aware of the impact this could have to the benefits they receive.

In this context one of the major issues is whether disability payments are considered to be assets which can be divided in a divorce. This question has been resolved in two ways. One is through the Colorado court of appeals ruling that concluded that VA disability payments are not property and therefore cannot be divided in that way. Another option is the U.S. Supreme Court ruling in Howell that ruled that garnishing a veteran's VA disability payments to pay for Alimony is against the Uniformed Services Former Spouses Protection Act (USFSPA).

Another concern that is related to this issue is how disability benefits are interpreted to determine child maintenance and support. The USFSPA and the Supreme Court both forbid states from counting disability payments as income for these purposes. However, some states have adopted an alternative approach. Colorado for instance adds all sources of income together to determine the amount needed to provide for a spouse. Colorado then adds disability income in order to account for their tax-free status.

It is also vital to know how divorce will affect their disability compensation and how ex-spouses can slash their income. By knowing about these issues, veterans can ensure the security of their benefits and avoid unwanted consequences.