How a Veterans Disability Settlement Can Affect a Divorce Case

Jim's client, 58 years old, is permanently disabled from his service in the military. He is able to receive a monthly pension from the Department of Veterans Affairs.

He wants to know if a jury verdict will affect his VA benefits. It won't. However, it will affect the other sources of income he earns.

Can I receive compensation in the event of an accident?

If you have served in the military but are now permanently disabled as a result of injuries or illnesses, you may be eligible for a veterans disability settlement. This settlement will help pay you for medical expenses, lost income and other expenses that resulted from your injury or sickness. The type of settlement that you can receive will depend on whether your injury or illness is a result of a service connection, the VA benefits you are eligible 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 work space to qualify for Social Security disability benefits but he does have a VA Pension benefit that provides cash and medical treatment for free that is based on financial need. He would like to know how a personal injuries settlement will affect his ability to get this benefit.

The answer is contingent upon whether the settlement is in the form of one lump sum or a structured settlement. Structured settlements are payments made over a time frame rather than as a single payment and the amount received by the defendant is used to offset any existing VA benefits. In contrast, a lump sum payout is likely to impact any benefits already in place because the VA considers it to be income and will annually calculate it. If Jim has extra assets after the settlement is annually adjusted, he can reapply to receive the Pension benefit. However his assets must be less than a certain threshold that the VA has set that establishes financial necessity.

Do I need to employ an attorney?

Many spouses, service members and former spouses are confused about VA disability compensation and its effect on money issues in divorce cases. Some people think, for instance, that the Department of albemarle veterans disability lawyer Affairs compensation payments can be split like the military retirement in divorce cases or that they're "off limits" when it comes to calculating child support and Alimony. These misconceptions could lead to financial mistakes that can have grave consequences.

It is possible to file an application for disability benefits yourself however, the majority of disabled veterans would benefit from the assistance of a professional lawyer. A qualified veteran's disability lawyer can review your medical records and gather the necessary evidence to make a convincing case at the VA. The lawyer can also file any appeals you may need in order to receive the benefits you deserve.

Additionally, the majority of VA disability lawyers don't charge fees for consultations. In addition the lawyer will typically be paid by the government directly from your retroactive past due benefits. This is a benefit of the Equal Access to Justice Act. Your fee agreement should clearly define the percentage of retroactive benefits to be paid to your lawyer. A fee agreement could stipulate for instance that the government will pay the attorney up 20% of retroactive benefits. Any additional amounts will be your responsibility.

Can I Garnish My VA Benefits?

The VA pays monthly compensation to disabled veterans. These payments are designed to help offset the consequences of illnesses, disabilities or injuries sustained or aggravated by a veteran's military service. The benefits for veterans' disability are subject to garnishment, just like other incomes.

Garnishment is a legal process which allows a court decide that an employer or a government agency to take money from the pay of an employee who owes money, and then send them directly to an individual creditor. In the event of a divorce garnishment may be used to pay child or spousal maintenance.

However, there are some situations where disability benefits could be refunded. The most common situation involves those who have renounced their military retirement in order to receive disability compensation. In these scenarios the pension portion that is allocated to disability benefits can be garnished in order to pay for family support obligations.

In other cases, a veteran's benefit may be garnished to cover medical expenses or federal student loans that are past due. In these instances, a court may be able to directly to the VA to obtain the necessary information. The disabled veteran should consult an experienced attorney to protect their disability benefits. This will prevent them from having to depend on private loans and payday lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a huge benefit for deforest veterans Disability lawsuit and their families, but they don't come without their own set of complications. If a veteran is divorced and receives an VA settlement and is eligible, they should know what this will do to the benefits they receive.

In this regard, a major question is whether or not disability payments count as assets that can be divided in divorce. This issue has been addressed in a couple of ways. A Colorado court of appeals ruling declared that VA disability payments were not property and therefore 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 topic is the treatment of disability benefits for child support and maintenance. The USFSPA and the Supreme Court both forbid states from claiming disability benefits as income for these purposes. However, certain states have adopted an alternative approach. For instance, Colorado adds up all sources of income to determine the amount in support a spouse needs and then adds up the disability benefits to take into account that they are tax-free.

In the end, it is crucial for veterans to understand how their disability compensation will be affected if they become divorced and how their spouses who divorced them can garnish their compensation. By being aware of these questions, veterans can guard their income and avoid unwanted consequences.