How a Veterans Disability Settlement Can Affect a Divorce Case

Jim's client, a 58-year-old man, is permanently disabled because of his military service. He gets a monthly pension from the Department of Veterans Affairs.

He wants to know how the verdict of a jury will affect his VA benefits. It won't. However, it will have an impact on his other income sources.

Can I claim compensation for an accident?

If you've been in the military, and are permanently disabled as a result of injuries or illnesses, you may be eligible for a veteran disability settlement. This settlement can help compensate you for medical expenses, lost income and other expenses that resulted from your illness or injury. The type of settlement you can get depends on whether or not your condition is service-connected or non-service connected, what VA benefits you qualify for, Vimeo as well as the amount your accident or injury will cost to treat.

Jim, a 58 year veteran of the Vietnam war was diagnosed with permanent disabilities because of his two years of service. He doesn't have enough work space to qualify for Social Security Disability benefits, but he has an VA Pension that offers free medical treatment and cash depending on the financial needs of his. He would like to know if a personal injury settlement would affect his eligibility to receive this benefit.

The answer will depend on whether the settlement is a lump sum or a structured one. Structured settlements are those that are made over a time period rather than in a single payment and the amount received by the defendant is calculated to offset any existing VA benefits. However, a lump sum payout is likely to alter any existing benefits as the VA considers it income and will annualize it. In the event that there are any excess assets remain after the twelve month period after the settlement is annually recalculated, Jim could be eligible for a new Pension benefit, but only if his assets are below a certain threshold that the VA agrees establishes financial need.

Do I need to hire an Attorney?

Many spouses, service members and former spouses have questions about VA disability payments and their impact on financial issues during divorce. Among other things, some people believe that the Department of Veterans Affairs' compensation payments can be split like a pension from a military service in divorce or are "off limits" in calculation of child support and Alimony. These misconceptions can lead to financial mistakes that have serious consequences.

While it is possible to submit an initial claim for disability benefits on your own, many disabled veterans benefit from the assistance of a professional attorney. A qualified veteran's disability lawyer can examine your medical documents and gather the necessary evidence to support your case at the VA. The lawyer can also file any appeals you might require to get the benefits you are entitled to.

Additionally, the majority of VA disability lawyers don't charge fees for consultations. In addition that the lawyer will normally 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 proportion of retroactive past-due benefits your lawyer will be paid should be clearly stated in your fee agreement. For instance your fee agreement may provide that the government can pay the lawyer up to 20% of the retroactive benefits or give. The attorney is responsible for any additional amounts.

Can I Garnish My VA Benefits?

The VA pays a monthly amount of compensation to disabled veterans. The funds are intended to alleviate some of the consequences of illnesses, disabilities, or injuries sustained during or aggravated by a veteran's military service. Like all incomes, patterson veterans disability lawyer disability benefits could be subject to garnishment.

Garnishment is a legal procedure that allows a court to require an employer or government agency to withhold funds from the paycheck of a person who owes money, and then send them directly to an individual creditor. In the event of a divorce, garnishment could be used to pay for spousal support or child support.

There are a few situations in which a veteran's benefits can be garnished. Most common is the veteran who has renounced his retirement from the military in order to receive disability compensation. In these scenarios the part of pension that is allocated to disability payments can be garnished in order to fulfill the family support obligations.

In other circumstances, veteran’s benefits can also be garnished to pay for medical expenses or federal student loans that are past due. In these situations a judge can refer a case directly to the VA to obtain the information they require. It is crucial for a disabled veteran to find a competent 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 are a tremendous help to veterans as well as their families. However, they come with specific complications. For instance, if a veteran gets divorced and is awarded a VA disability settlement, they need to know how this will affect the benefits they receive.

One of the major issues in this regard is whether or not disability benefits are considered divisible assets in divorce. This issue has been addressed in a couple of ways. One method is the Colorado court of appeals decision that found that VA disability payments are not property and can't be divided in that way. The other way is by an U.S. Supreme Court ruling in Howell that held that garnishing the veteran's VA disability benefits to pay for Alimony is against the Uniformed Services Former Spouses Protection Act (USFSPA).

Another concern with this topic is the treatment of disability benefits for child support and maintenance. Both the USFSPA as well as the Supreme Court, prohibit states from counting disability benefits as income. Some states have different methods. Colorado for instance, adds all sources of income together to determine the amount required to support a spouse. The state then adds disability benefits to account for their tax-free status.

It is also important to know the impact divorce has on their disability benefits and how their ex spouses can slash their income. By being aware of these issues, veterans can safeguard their income and avoid unwanted consequences.