How a Veterans Disability Settlement Can Affect a Divorce Case

Jim's client, a 58 year old man, is permanently disabled due to his military service. He receives a monthly pension benefit from the Department of veterans disability compensation Affairs.

He wants to be aware of whether a verdict by a jury will affect his VA benefits. It will not. However, it could have an impact on the other sources of income he has.

Can I claim compensation in the event of an accident?

If you have served in the military but are now permanently disabled due to injuries or illnesses, you could be eligible for a veterans disability compensation disability settlement. This settlement can assist in compensating you for medical bills, lost income, and other expenses resulting from your illness or injury. The type of settlement you could receive will depend on whether your illness or injury is related to service, what VA benefits you are eligible for, and veterans disability settlement the amount you will need to treat your accident or injury.

Jim, a 58 year veteran of Vietnam, was diagnosed as having permanent disabilities as a result of his two years of service. He does not have enough work space to qualify for Social Security disability benefits but he does have a VA Pension benefit, which offers medical care and cash based on financial need. He would like to be aware of whether a personal injury settlement would affect his ability be eligible for this benefit.

The answer is contingent upon whether the settlement is a lump sum or a structured one. Structured settlements involve installments over time instead of one payment. The amount paid by the defendant is calculated to offset existing VA benefits. A lump sum settlement will affect any existing VA benefits since the VA will annually calculate and Veterans Disability Settlement consider it to be income. In any event, if extra assets are left over after the period of twelve months when the settlement is annualized Jim could reapply for the pension benefit, but only if his assets are below a certain threshold that the VA accepts as establishing financial need.

Do I require an attorney?

Many spouses, military personnel and former spouses have questions about VA disability payments and their effect on financial issues during divorce. In addition, some people believe that the Department of veterans disability law Affairs' compensation payments can be split like a pension from a military service in a divorce or that they are "off limits" in calculation of child support and Alimony. These misconceptions can lead to financial errors that have serious repercussions.

While it is possible to submit an initial claim for disability benefits by yourself, the majority of disabled veterans can benefit from the assistance of a skilled lawyer. A qualified veteran's disability lawyer can review your medical documents and gather the required evidence to present a strong case at the VA. The lawyer can also help to submit any appeals you require to secure the benefits you deserve.

Furthermore, the majority of VA disability lawyers do not charge fees for consultations. In addition the lawyer will usually 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 state the amount of retroactive benefits to be paid to your lawyer. For instance, a fee agreement can stipulate that the government will pay the lawyer up to 20% of the retroactive benefits or pay. Any additional amount is your obligation.

Can I Garnish My VA Benefits?

The VA provides monthly compensation to disabled veterans. These payments are designed to compensate for the effects of diseases, injuries or disabilities sustained or aggravated during a veteran's service. The benefits for veterans' disability are subject to garnishment, just like other incomes.

Garnishment is a legal action which allows a court make an order to an employer or government agency to omit funds from the paycheck of a person who owes money and transfer them directly to a creditor. In the case of divorce, garnishment may be used to pay spousal maintenance or child support.

However, there are a few situations where disability benefits are able to be repaid. The most common situation involves those who have renounced their military retirement in order to receive disability compensation. In these cases the amount of pension allocated to disability payments can be garnished for family support obligations.

In other cases, a veteran's benefits may also be seized to pay medical expenses or federal student loans that are over due. In these cases a judge can refer a case directly to the VA to obtain the information they need. It is vital for a disabled veteran to retain a knowledgeable attorney to ensure that their disability benefits are not removed. This will prevent them from relying on payday lenders or private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a major assistance to veterans and their families, however they come with their own set of challenges. If a person divorces and receives an VA settlement, he or she should be aware of the impact this could have to their benefits.

In this context, the main question is whether or not disability payments are considered assets that can be split in divorce. This issue has been settled in a variety of ways. One way is by a Colorado court of appeals ruling that concluded that VA disability payments are not property and can't be divided in that way. Another way is through the U.S. Supreme Court ruling in Howell which held that garnishing the 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 related to this issue is how disability benefits are treated in the context of child maintenance and support. Both the USFSPA, and the Supreme Court, prohibit states from utilizing disability benefits as income. Certain states use different methods. For instance, Colorado adds up all sources of income to determine how much in support a spouse needs and then adds disability payments to take into the fact that they are tax-free.

Additionally, it is essential for veterans disability law to know how their disability benefits will be affected if they are divorced and how their spouses who divorced them can garnish their compensation. By being aware of these issues, vets can protect their compensation and avoid any unintended consequences.