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How a Veterans Disability Settlement Can Affect a Divorce Case

Jim's 58 year old client is permanently disabled due to his service in the military. He receives a monthly pension benefit from the Department of Veterans Affairs.

He wants to know if a jury verdict will affect his VA benefits. It will not. However, it will have an impact on his other income sources.

Can I claim compensation in the event of an accident?

You may be eligible to receive a settlement if you were a soldier but are now permanently disabled as a result of injuries or illnesses. This settlement can help you get compensation for medical bills, lost wages, and other costs resulting from your injury or illness. The kind of settlement you can receive will depend on whether your injury or illness is service-connected, what VA benefits you qualify for, and the amount you will need to treat your injury or accident.

For instance, Jim is a 58-year veteran who was diagnosed with permanent disabilities following two years of service in the Vietnam War. He does not have enough working space to qualify for Social Security disability benefits but He does have a VA Pension benefit which provides cash and free medical care based on financial need. He wants to know if a personal injury settlement could affect his ability to receive this benefit.

The answer will depend on whether the settlement is in the form of an unintentional lump sum or a structured settlement. Structured settlements are based on payments over a period of time, rather than one single payment. The amount paid by defendant is calculated to offset the existing VA benefits. A lump sum payment will affect any existing VA benefits because the VA will annually calculate and consider it income. If Jim has surplus assets after the settlement is annualized then he is eligible to be eligible for the pension benefit. However, his assets must be below a minimum threshold that the VA has agreed establishes financial necessity.

Do I have to hire an attorney?

Many service members, spouses and veterans disability former spouses are confused about VA disability compensation and the impact it has on financial issues in divorce cases. In addition, some people think that the Department of veterans disability attorney Affairs' compensation payments are able to be divided like a military pension a divorce or that they are "off limits" when it comes to calculation of child support and alimony. These misconceptions could lead grave financial errors.

It is possible to submit a claim for disability benefits on your own however, the majority of disabled veterans will require the help from a competent lawyer. A disability attorney for veterans can examine your medical records to collect the evidence necessary to present a convincing case before the VA. The lawyer will also be able to submit any appeals you require to receive the benefits you are entitled to.

The majority of VA disability lawyers do not charge for consultations. The government also pays the lawyer directly from the award of retroactive benefits. This is an advantage of the Equal Access to Justice Act. Your fee agreement should specify clearly the proportion of retroactive benefits to be paid to your lawyer. A fee agreement could state for instance that the government will pay the attorney up 20% of retroactive benefits. Any additional amount is your obligation.

Can I Garnish My VA Benefits?

The VA pays a monthly amount of compensation to disabled veterans. The payments are intended to compensate for the effects of diseases, injuries or disabilities that were sustained or worsened during the veteran's service. As with all income, veterans disability lawsuit disability benefits can be subject to garnishment.

Garnishment permits a court order that an employer or government agency stop money from the wages of a person who owes the debt and pay it directly to the creditor. In the event of a divorce garnishment can be used to pay child or spousal maintenance.

There are a few situations in which a veteran's benefits can be encashable. Most common is the veteran who has renounced his military retirement to receive disability compensation. In these scenarios the amount of pension that is allocated to disability benefits can be garnished in order to meet family support obligations.

In other circumstances, veteran's benefits could be garnished in order to pay for medical expenses or federal student loans that are past due. In these cases the court could go directly to the VA for the information they require. A disabled veteran should seek out an experienced attorney to secure their disability benefits. This will help them avoid having to depend on payday loans or private loans. lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements are a tremendous assistance to veterans and their families. However, they come with certain complications. If a veteran gets divorced and receives a VA settlement it is important to know what this will do to their benefits.

In this context, the main question is whether disability payments are considered assets that can be divided in divorce. The question has been answered in two 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 benefits for the purpose of alimony was in violation of USFSPA.

Another concern related to this topic is how the disability benefits are treated for purposes of child support and maintenance. Both the USFSPA, as well as the Supreme Court, prohibit states from counting disability benefits as income. However, certain states have taken the opposite approach. For instance, Colorado adds up all sources of income to determine the amount in support a spouse is entitled to and veterans disability then pluses up the disability payments to take into the fact that they are tax-free.

It is also essential that veterans understand the impact divorce has on their disability compensation and how ex-spouses can slash their income. By being aware of these issues, vets can protect their income as well as avoid any unintended consequences.