How a Veterans Disability Settlement Can Affect a Divorce Case

Jim's 58 year old client is permanently disabled as a result of his time in the military. He receives a monthly Pension benefit from the Department of Veterans Affairs.

He would like to know how the verdict of a jury will impact his VA benefits. It won't. But it will have an impact on the other sources of income he has.

Can I get 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 assist in compensating you for medical bills, lost income and other costs that resulted from your illness or injury. The type of settlement you are eligible for will depend on whether your illness or injury is service-related, what VA benefits you are eligible for, as well as the cost to treat your injury or accident.

For example, Jim is a 58-year old veteran who was diagnosed with permanent disabilities from two years of service in the Vietnam War. He doesn't have enough work space to qualify for Social Security Disability benefits, however, he can claim the VA Pension, which provides free medical treatment and cash dependent on the amount of money he needs. He wants to understand how a personal injury lawsuit will affect his eligibility to receive this benefit.

The answer depends on whether the settlement is in the form of one lump sum or a structured settlement. Structured settlements are based on installments over time instead of a single payment. The amount paid by defendant is calculated to offset the existing VA benefits. However, a lump sum payout will likely alter any existing benefits as the VA considers it as income and will increase it. If Jim has excess assets after the settlement is annually adjusted then he is eligible to be eligible for the pension benefit. However the assets he has to be below a minimum threshold that the VA has set that establishes financial necessity.

Do I really need to hire an attorney?

Many spouses, service members and former spouses are confused about VA disability compensation and the impact it has on financial issues in divorce cases. Among other things, some people believe that the Department of Veterans Affairs' compensation payments can be divided like a military pension in a divorce or that they are "off limits" when it comes to calculation of child support and alimony. These misconceptions could lead to financial mistakes that can have grave consequences.

It is possible to file a claim for disability benefits on your own, but most disabled veterans disability law firm will benefit from the assistance of a skilled lawyer. A veteran's disability lawyer who is experienced can review your medical records and gather all the necessary evidence to make a convincing argument to the VA. The lawyer can also file any appeals that you may need in order to receive the benefits you are entitled to.

Most VA disability lawyers do not charge for consultations. In addition that the lawyer will normally be paid by the government directly from your award of retroactive past-due benefits. This is an advantage of the Equal Access to Justice Act. The fee agreement should clearly specify the amount of retroactive benefits to be paid to your lawyer. For instance the fee agreement could specify that the government will pay the lawyer up to 20% of retroactive benefits or provide. You will be responsible for any additional amount.

Can I Garnish My VA Benefits?

When a disabled veteran receives compensation from the VA the compensation is paid in the form of monthly payments. These payments are designed to compensate for some of the consequences of illnesses, disabilities, or injuries sustained during or aggravated due to a veteran's military service. Like all incomes, veterans disability benefits can be subject to garnishment.

Garnishment allows a court order that an employer or government agency withhold cash from the pay of a person who is in the process of paying an amount and then pay it directly to the creditor. In the event of a divorce, garnishment can be used to pay spousal maintenance or child support.

However, there are a few circumstances where a veteran's disability benefits are able to be repaid. Most common is the veteran who renounced his military retirement to receive disability compensation. In these situations the pension portion that is allocated to disability payments can be garnished to pay for family support obligations.

In other circumstances, veteran's benefit may be seized to pay for medical expenses or federal student loans that are past due. In these cases, a court can go directly to the VA for the information they require. A disabled veteran should employ an experienced attorney to safeguard their disability benefits. This can stop them from relying on payday lenders and 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 complications. If a veteran is divorced and receives an VA settlement then they must be aware of what this might do to the benefits they receive.

A major issue in this regard is whether disability payments are considered divisible assets in divorce. This question has been resolved in a variety of ways. A Colorado court of appeals ruling determined that VA disability payments were not property and could not be divided in this way. The U.S. Supreme Court ruled in Howell, that garnishing a veteran's VA disability payments for the purpose of alimony was in violation of USFSPA.

Another concern related to this subject is how disability benefits are treated to determine child support and maintenance. Both the USFSPA as well as the Supreme Court, prohibit states from utilizing disability benefits as income. Certain states employ an alternative approach. Colorado is one example. It adds all income sources together to determine the amount needed to provide for Veterans disability a spouse. Colorado then adds disability benefits in order to account for their tax-free status.

It is also essential to know how divorce will affect their disability compensation and how their spouses who divorced can slash their income. By being informed about these issues, vets can safeguard their benefits and avoid the unintended consequences.