How a Veterans Disability Settlement Can Affect a Divorce Case

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

He wants to know if a jury award will affect his VA benefits. The answer is that it will not. However, it could have an impact on the other sources of income he has.

Can I get compensation in the event of an accident?

If you've served in the military and Vimeo are now permanently disabled because of injuries or illnesses, you could be eligible for a veterans disability settlement. This settlement can help compensate you for medical expenses, lost income and other costs that resulted from your illness or injury. The type of settlement you will receive will depend on whether or not your injury or illness is a result of a service connection, the VA benefits you are eligible for, and the amount you will need to treat your injury or accident.

Jim, a 58-year veteran of the Vietnam war was diagnosed with permanent disabilities because of his two years of service. He does not have enough working space to qualify for Social Security disability benefits but the VA Pension benefit that provides cash and free medical assistance dependent on financial need. 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 either a lump sum or structured settlement. Structured settlements are settlements that are paid over a period of time rather than a single payment and the amount received by the defendant is used to offset any existing VA benefits. In contrast, a lump sum payout will likely impact any benefits already in place because the VA considers it income and will annualize it. In the event that there are any excess assets are left over after the 12 month period when the settlement has been annualized Jim could apply again for the Pension benefit but only if his assets fall below a threshold that the VA determines to be a financial need.

Do I require an attorney?

Many service members, spouses and former spouses have questions about VA disability benefits and their impact on financial issues during a divorce. There are many other reasons, but some people think that the Department of covington veterans disability attorney Affairs' compensation payments can be divided as a military pension in divorce or are "off limits" in the calculation of child support and alimony. These misconceptions can lead to serious financial errors.

While it is possible to submit an initial claim for disability benefits by yourself, the majority of disabled veterans require the assistance of a professional attorney. A skilled veteran's disability lawyer can examine your medical documents and gather the required evidence to present a strong case to the VA. The lawyer can also file any appeals that you might require to receive the benefits you are entitled to.

Additionally, the majority of VA disability lawyers do not charge fees for consultations. The government also pays the lawyer directly from your payment of retroactive benefits. This is a benefit of the Equal Access to Justice Act. Your fee agreement should clearly specify the amount of retroactive benefits that will be paid to your lawyer. For instance your fee agreement may stipulate that the government will pay the lawyer up to 20% of the retroactive benefits or pay. Any additional amounts are your obligation.

Can I Garnish My VA Benefits?

If a disabled veteran is granted compensation from the VA the compensation is paid in the form of monthly payments. The purpose of the payments is to help offset the consequences of illnesses, disabilities or injuries that are sustained or aggravated by a veteran's military service. Like all income, the veterans disability benefits can be subject to garnishment.

Garnishment is a legal action that allows a judge to require an employer or government agency to withhold funds from the paycheck of a person who owes money and transfer them directly to a creditor. In the case of divorce, garnishment can be used to pay for spousal support or child support.

There are some situations where a veteran's benefits can be encashable. The most common scenario involves those who have renounced their military retirement to get disability compensation. In these situations the pension portion that is allocated to disability payments can be garnished to meet family support obligations.

In other cases, a veteran's benefits could be garnished to cover medical expenses or federal student loans that are past due. In these situations the court may be able to direct the case to the VA to obtain the necessary information. A disabled veteran should hire an experienced lawyer to protect their disability benefits. This will prevent them from having to depend on payday loans or private loans. lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be an enormous benefit for veterans and their families, but they're not without their own set-of complications. For example in the event that a veteran gets divorced and is awarded an VA disability settlement, they must be aware of how this will affect their benefits.

In this context one of the major issues is whether disability payments count as assets that could be divided in a divorce. This question has been answered in two ways. A Colorado court of appeals ruling found that VA disability payments were not property and therefore could not be divided this way. Another option is an U.S. Supreme Court ruling in Howell that ruled that garnishing the veteran's VA disability benefits to pay for 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 treated to determine child support and maintenance. Both the USFSPA, as well as the Supreme Court, prohibit states from counting disability benefits as income. However, some states have taken different approaches. Colorado for instance, adds all income sources together to determine the amount required to provide for a spouse. Colorado then adds disability benefits in order to take into account their tax-free status.

It is also important that veterans know the impact divorce has on their disability benefits and how ex-spouses could slash their benefits. By knowing about these questions, veterans can guard their earnings and avoid any unintended consequences.