How a Veterans Disability Settlement Can Affect a Divorce Case

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

He wants to know how a jury award will impact his VA benefits. It will not. It will, however, have an impact on his other sources of income.

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

You may be eligible for a settlement if you were in the military but are now permanently disabled because 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 kind of settlement you will receive will depend on whether your injury or illness is related to service, what VA benefits you qualify for, as well as the cost to treat your accident or injury.

Jim is a 58 year veteran of Vietnam was diagnosed with permanent disabilities because of his two years of service. He does not have enough work space to qualify for Social Security Disability benefits, however, he can claim an VA Pension that offers free medical care and cash according to his financial need. He wants to understand how a personal injuries settlement could affect his eligibility to get this benefit.

The answer is contingent upon whether the settlement is a lump-sum or a structured one. Structured settlements require installments over time, rather than one single payment. The amount paid by defendant is calculated to offset the existing VA benefits. In contrast, a lump sum payout is likely to impact any benefits already in place because the VA considers it a tax-deductible income and will annually increase it. In any event, if extra assets are left over after the 12 month period when the settlement has been annualized Jim could apply again for the Pension benefit, but only if his assets fall below a certain threshold that the VA agrees establishes financial need.

Do I really 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. Some people believe, for instance, that Department of Veterans Affairs compensation payments are split like an army retirement 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.

While it is possible to do an initial claim for disability benefits by yourself, the majority of disabled veterans require the assistance of a skilled attorney. An experienced veteran's disability lawyer will examine your medical records and gather all the necessary evidence to present a strong case at the VA. The lawyer can also help to make any appeals you require to secure the benefits you are entitled to.

In addition, the majority of VA disability lawyers charge no fees for consultations. Additionally the lawyer will usually be paid by the government directly from the retroactive past-due benefits. This is a benefit of the Equal Access to Justice Act. The fee agreement should clearly specify the proportion of retroactive benefits that will be paid to your lawyer. For instance the fee agreement could stipulate that the government will pay the lawyer up to 20% of retroactive benefits or give. Any additional amounts will be your obligation.

Can I Garnish My VA Benefits?

The VA offers monthly payments to disabled veterans. The funds are intended to alleviate some of the effects of disabilities, diseases, or injuries sustained during or aggravated by a veteran's military service. Like other income sources, veterans disability attorney disability benefits can be subject to garnishment.

Garnishment is a legal action that allows a judge to decide that an employer or a government agency to deduct funds from the pay of someone who is in debt and to send them directly to a creditor. In the event of divorce, garnishment may be used to pay child or spousal support.

There are a few situations in which veterans' benefits could be encashable. The most common scenario is the veteran who has waived their military retirement to receive disability compensation. In these instances the portion of the pension apportioned to disability pay can be garnished to pay family support obligations.

In other situations, veteran's benefits may also be garnished in order to pay medical bills or federal student loans that are over due. In these instances the court can go directly to the VA to obtain the information they need. The disabled veteran should consult an experienced attorney to protect their disability benefits. This can prevent them from relying on payday lenders and private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements are a great help to veterans as well as their families. However they also come with specific complications. If a veteran gets divorced and receives an VA settlement it is important to be aware of the implications to their benefits.

In this context the most important question is whether disability payments are considered to be assets that can be split during a divorce. This issue has been addressed in a variety of ways. One way is by a Colorado court of appeals decision that found that VA disability payments are not property and cannot be divided as such. Another option is the U.S. Supreme Court ruling in Howell that ruled that garnishing a veteran's VA disability benefits to pay the payment of alimony is in violation of the Uniformed Services Former Spouses Protection Act (USFSPA).

Another concern relating to this subject is the treatment of disability benefits to children for support and maintenance. Both the USFSPA and the Supreme Court, prohibit states from utilizing disability benefits as income. However, some states have taken the opposite approach. Colorado is one example. It adds all income sources together to determine the amount needed to support a spouse. The state then adds disability benefits in order to account for their tax-free status.

It is also essential that veterans Disability law Firms know how divorce affects their disability compensation and how ex-spouses can slash their income. By being knowledgeable about these issues, veterans can protect their compensation and avoid unintended consequences.