How a Veterans Disability Settlement Can Affect a Divorce Case

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

He wants to be aware of whether a verdict by a jury will impact his VA benefits. It won't. However, it will have an impact on the other sources of income he earns.

Do I have the right to receive compensation for an accident?

You may be eligible to receive a settlement if you were in the military but are now permanently disabled because of injuries or illnesses. This settlement can allow you to receive compensation for your medical bills, lost wages, and other expenses related to your illness or injury. The kind of settlement you'll get will depend on whether the medical condition is service-connected, or not connected, what VA benefits you qualify for, and the amount your accident or injury will cost to treat.

For example, Jim is a 58-year old veteran who was diagnosed with permanent disabilities after two years of service in the Vietnam War. He does not have enough working space to be eligible for Social Security disability benefits but he does have a VA Pension benefit which provides medical care and cash based on financial need. He wants to find out 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 the ones that are paid over a time period instead of in one payment, and the amount paid by the defendant is used to offset any existing VA benefits. A lump sum payment can affect any existing VA benefits as the VA will annually evaluate and consider it to be income. In any case, if there are excess assets remain after the 12 month period when the settlement is annualized, Jim could reapply for the pension benefit, but only if his assets fall lower than a threshold with which the VA determines to be a financial need.

Do I require an attorney?

Many spouses, service members, and former spouses have questions about VA disability payments and their effect on financial issues in divorce. There are many other reasons, but some people believe that the Department of Veterans Affairs' compensation payments can be divided like a military pension in divorce or are "off limits" in calculation of child support and Alimony. These misconceptions could lead to serious financial mistakes.

It is possible to file an application for disability benefits on your own, but most disabled veterans will require the help of a skilled lawyer. A veteran's disability lawyer who is experienced will examine your medical records and gather the necessary evidence needed to build a strong case to the VA. The lawyer will also be able to submit any appeals you need to get the benefits you're entitled.

Most VA disability lawyers don't charge for consultations. The government will also pay the lawyer directly from the payment of retroactive benefits. This is an advantage of the Equal Access to Justice Act. The amount of retroactive past-due benefits that your lawyer will be paid must be specified in your fee agreement. For instance, a fee agreement can stipulate that the government will pay the attorney up to 20% of retroactive benefits or give. Any additional amounts will be your responsibility.

Can I Garnish My VA Benefits?

When a disabled veteran receives compensation from the VA it is in the form of monthly payments. The funds are intended to compensate for some of the effects of disability, illness or injuries incurred during or aggravated by the veteran's military service. The benefits for veterans' disability are subject to garnishment as is any other income.

Garnishment is a legal process that allows a court to require an employer or government agency to take money from the wages of a person who owes money and send them directly to an individual creditor. In the event of divorce, garnishment can be used to pay spousal maintenance or child support.

There are some situations where a veteran's benefits can be repaid. The most common situation involves a veteran who waived their military retirement in order to claim disability compensation. In these instances, the portion of the pension that is allocated to disability pay could be garnished to meet family support obligations.

In other circumstances, veteran's benefits may also be seized to cover medical expenses or federal student loans that are over due. In these instances the court might be able to directly to the VA to get the required information. It is vital for disabled veterans disability lawsuit to hire a knowledgeable lawyer to ensure that their disability benefits are not garnished. This will prevent them from having to rely on payday lenders or private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a huge benefit for veterans disability lawyers and their families, but they're not without their own set of issues. For example the case where a veteran is divorced and is awarded a VA disability settlement, they must be aware of what effect this will have on their benefits.

In this regard, the main question is whether disability benefits are considered assets which can be divided in a divorce. The issue has been resolved in a variety of ways. One method is the Colorado court of appeals ruling that concluded that VA disability payments are not property and cannot be divided in this way. The U.S. Supreme Court ruled in Howell, that garnishing a veteran's VA disability benefits for Veterans Disability Law Firms alimony was a violation of USFSPA.

Another concern related to this issue is the treatment of disability benefits for child support and maintenance. Both the USFSPA and the Supreme Court, prohibit states from claiming disability benefits as income. Certain states use a different approach. Colorado for instance adds all income sources together to determine the amount required to support a spouse. It then adds disability payments to reflect their tax-free status.

It is also crucial that veterans know how divorce affects their disability compensation and how their spouses who divorced could take advantage of their compensation. By being aware of these issues, vets can safeguard their benefits as well as avoid the unintended consequences.