How a veterans disability attorney Disability Settlement Can Affect a Divorce Case

Jim's client, a 58 year old man is permanently disabled as a result of his military service. He receives a monthly pension benefit from the Department of Veterans Affairs.

He would like to know if a jury verdict will affect his VA benefits. The answer is not. But it will have some impact on the other sources of income he has.

Can I get compensation for an accident?

If you've been in the military and are permanently disabled due to injuries or illnesses, you may be eligible for a veterans disability settlement. This settlement can help you get compensation for medical bills, lost wages and other expenses resulting from your injury or illness. The type of settlement that you will receive will depend on whether your illness or injury is a result of a service connection, the VA benefits you are eligible for, and the cost to treat your accident or injury.

For example, Jim is a 58-year old veteran who was diagnosed with permanent disabilities based on two years of service during the Vietnam War. He does not have enough working space to qualify for Social Security disability benefits but the VA Pension benefit, which offers medical care and cash based on financial need. He would like to know if a personal injury 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 payments over time, rather than one lump sum payment. The amount paid by defendant is calculated to offset the existing VA benefits. A lump sum payment can affect any existing VA benefits since the VA will annually calculate and consider it income. If Jim has surplus assets after the settlement is annualized the applicant can apply again to receive the Pension benefit. However the assets he has to be below a threshold the VA has agreed establishes financial necessity.

Do I need to hire an attorney?

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

While it is possible to do an initial claim for disability benefits on your own, most disabled veterans can benefit from the assistance of a skilled attorney. A disability attorney for veterans can examine your medical records to gather the evidence needed to prove your argument before the VA. The lawyer can also file any appeals that you may require to get the benefits you deserve.

The majority of VA disability lawyers do not charge for consultations. The government will also pay the lawyer directly from your award of retroactive benefits. This is an advantage of the Equal Access to Justice Act. The amount of retroactive past due benefits your lawyer will be paid must be specified in your fee agreement. A fee agreement may stipulate that, for example, the government would provide the attorney with 20% of retroactive benefits. You are responsible for any additional amounts.

Can I Garnish My VA Benefits?

When disabled veterans receive compensation from the VA the compensation is paid in the form of monthly payments. The purpose of the payments is to help offset the effects of disabilities, diseases, or injuries sustained during or aggravated by a veteran's military service. Like all income, the veterans disability benefits can be subject to garnishment.

Garnishment permits a court order that an employer or government agency deduct money from the wages of a person who has an amount and then pay it directly to a creditor. In the event of divorce, garnishment may be used to pay spousal support or child support.

There are certain situations where veterans' benefits could be encashable. The most common situation involves veterans who have waived their military retirement in order to receive disability compensation. In these cases, the portion of the pension that is allocated to disability pay may be garnished for family support obligations.

In other situations veterans' benefits could be seized to pay medical expenses or past-due federal student loans. In these situations a judge can refer a case directly to the VA for the information they need. It is important for disabled veterans to work with a reputable lawyer to ensure that their disability benefits are not removed. This can stop them from relying on payday lenders or private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be an enormous assistance to veterans and their families, veterans but they don't come without their own set of challenges. If a person divorces and receives an VA settlement then they must be aware of what this might do to the benefits they receive.

In this case, the main question is whether disability payments count as assets that can be split in divorce. This question has been answered in two ways. One option is the Colorado court of appeals decision, which found that VA disability payments are not property, and therefore cannot be divided in that way. The other way is by the U.S. Supreme Court ruling in Howell that ruled that garnishing the veteran's VA disability payments to pay alimony is a violation of the Uniformed Services Former Spouses Protection Act (USFSPA).

Another concern that is related to this issue is how disability benefits are interpreted to determine child maintenance and support. The USFSPA and the Supreme Court both forbid states from counting disability payments as income to be used for this purpose. Certain states take different methods. For instance, Colorado adds up all sources of income to determine the amount in support a spouse requires and then adds up the disability payments to take account that they are tax-free.

It is also important for veterans to understand how their disability benefits will be affected if they get divorced and how their spouses who divorced them can affect their compensation. If they are aware of these issues, veterans can protect their earnings and avoid any unwanted consequences.