How a Veterans Disability Settlement Can Affect a Divorce Case

Jim's 58-year-old client is permanently disabled because of 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. The answer is not. It will, however, have an impact on his other sources of income.

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

You may be eligible for a settlement in the event that you have served in the military, but are now permanently disabled because of injuries or illnesses. This settlement could help you receive compensation for your medical expenses, lost wages, and other expenses resulting from your illness or injury. The type of settlement you'll receive will depend on whether your health condition is non-service connected, what VA benefits you qualify for, and how much your injury or accident will cost to treat.

For instance, Jim is a 58-year old veteran who was diagnosed with permanent disabilities after two years of service during the Vietnam War. Jim does not have enough space for work to qualify for Social Security Disability benefits, however, he is able to claim a VA Pension that provides cash and medical treatment for free depending on the financial needs of his. He would like to determine if a personal accident settlement will affect his ability to receive this benefit.

The answer is dependent on whether the settlement is in the form of one lump sum or a structured settlement. Structured settlements involve the payment of over time instead of one payment. The amount that defendant pays is calculated to offset existing VA benefits. However, a lump sum payment will likely impact any benefits already in place because the VA considers it a tax-deductible income and will annually increase it. If Jim has extra assets after the settlement is annualized the applicant can apply again to receive the Pension benefit. However his assets must be below a minimum threshold that the VA has set to establish financial necessity.

Do I need to employ an attorney?

Many spouses, service members and former spouses are confused about VA disability compensation and vimeo its impact on money 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 divorce or are "off limits" when it comes to calculation of child support and Alimony. These misconceptions could lead serious financial mistakes.

While it is possible to do an initial claim for disability benefits on your own, most disabled veterans get the assistance of a professional attorney. A veteran's disability attorney will examine your medical records in order to collect the evidence necessary to argue your case in front of the VA. The lawyer can also file any appeals you might require to receive the benefits you deserve.

In addition, the majority of VA disability lawyers don't charge fees for consultations. Additionally, the lawyer will generally be paid by the government directly out of 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 to be paid to your lawyer. For instance the fee agreement could stipulate that the government will pay the attorney up to 20% of the retroactive benefits or provide. Any additional amounts are your obligation.

Can I Garnish My VA Benefits?

If a disabled veteran is granted compensation from the VA, it comes in the form of monthly payments. The purpose of the payments is to offset some of the effects of disability, illness or injuries sustained or aggravated due to a veteran's military service. Like all income, the veterans disability benefits could be subject to garnishment.

Garnishment permits a court order that an employer or a government agency withhold funds from the paycheck of a person who owes an obligation and pay it directly to the creditor. In the event of a divorce garnishment can be used for child or spousal support.

There are certain situations where the benefits of a veteran can be garnished. The most common situation involves a veteran who waived their military retirement to get disability compensation. In these cases the amount of pension that is devoted to disability compensation can be garnished in order to meet family support obligations.

In other situations veterans' benefits could be garnished to pay for medical expenses or past due federal student loans. In these instances the court may be able to direct the case to the VA to get the required information. A disabled veteran should employ an experienced attorney to protect their disability benefits. This can help them avoid having to depend on private loans and payday lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements are a great help to veterans and their families. However, they come with specific complications. If a veteran is divorced and receives an VA settlement then they must know what this will do to the benefits they receive.

One of the major issues in this regard is whether disability benefits are considered divisible assets in divorce. This issue has been addressed in a variety of ways. A Colorado court of appeals decision declared that VA disability payments were not property and could not be divided this manner. Another method is a U.S. Supreme Court ruling in Howell which held 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 related to this issue is how disability benefits are interpreted for purposes of child support and maintenance. The USFSPA and the Supreme Court both forbid states from claiming disability benefits as income for Vimeo these purposes. Some states have different approaches. Colorado for instance, takes all income sources together to determine the amount needed to support a spouse and then adds disability benefits to reflect their tax-free status.

It is also important that veterans know how divorce will affect their disability benefits and how ex-spouses can slash their income. By being aware of these issues, vets can ensure their compensation as well as avoid the unintended consequences.