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 receives a monthly pension benefit from the Department of Veterans Affairs.

He wants to know how an award from a jury will impact his VA benefits. It will not. However, it could have an impact on his other sources of income.

Do I have the right to receive compensation in the event of an accident?

You could be eligible for a settlement in the event that you were in the military but are now permanently disabled as a result of injuries or illnesses. This settlement can allow you to get compensation for medical bills, lost wages, and other expenses resulting from your injury or illness. The type of settlement you can get depends on whether or not your health condition is non-service connected, what VA benefits you are eligible for, as well as the amount your injury or accident will cost to treat.

For example, Jim is a 58-year veteran who was diagnosed with permanent disabilities after two years of service during the Vietnam War. Jim does not have enough work space to qualify for Social Security Disability benefits, however, he is able to claim the VA Pension which offers free medical treatment and cash based on his financial need. He would like to find out if a personal injury settlement will affect his ability to get this benefit.

The answer depends on if the settlement is a lump sum or a structured one. Structured settlements involve payments over time instead of one single payment. The amount paid by defendant is calculated to offset existing VA benefits. A lump sum payment will likely affect any existing benefits because the VA considers it a tax-deductible income and will annually increase it. In either case, if excess assets remain 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 is able to agree establishes financial need.

Do I need to hire an Attorney?

Many spouses, service members and former spouses are confused about VA disability compensation and its effect on financial issues in divorce cases. Some people believe, for instance, that the Department of Herrin veterans Disability Attorney Affairs compensation payments can be split like the military retirement in divorce proceedings or that they're "off limits" when it comes to calculating child support and alimony. These misconceptions can lead to financial mistakes that can have grave consequences.

While it is possible to file an initial claim for disability benefits on your own, many disabled veterans can benefit from the assistance of a skilled attorney. A veteran's disability attorney can review your medical records to gather the evidence needed to present a convincing argument before the VA. The lawyer will also be able to make any appeals you require to secure the benefits you are entitled to.

Most VA disability lawyers don't charge for consultations. The government will also pay the lawyer directly from your benefit of retroactive benefits. This is a benefit of the Equal Access to Justice Act. The amount of retroactive past due benefits your lawyer will receive must be specified in your fee agreement. A fee agreement could say that, for example, the government will pay the attorney up 20 percent of retroactive benefits. Any additional amount is your to pay.

Can I Garnish My VA Benefits?

When disabled beckley veterans disability lawyer receive compensation from the VA it is in the form of monthly payments. These payments are designed to offset the effects of illnesses, injuries or disabilities that were sustained or aggravated during a veteran's time of service. The benefits for veterans' disability are subject to garnishment like any other income.

Garnishment allows a court order that an employer or a government agency withhold money from the pay of a person who is in the process of paying an amount and then pay it directly to a creditor. In the event of divorce, garnishment may be used to pay spousal or child support or child support.

There are situations where veterans' benefits could be encashable. The most common scenario is a veteran who waived their military retirement to get disability compensation. In these situations the portion of the pension apportioned to disability pay could be garnished to meet family support obligations.

In other instances it is possible for a veteran's benefits to be seized to pay medical expenses or past-due federal student loans. In these cases the court could go directly to the VA to obtain the information they require. It is vital for disabled veterans to hire a knowledgeable lawyer to ensure that their disability benefits aren't removed. This can help them avoid having to depend on payday loans and private loans. lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements are an excellent help to veterans and their families. However they have certain complications. If a veteran gets divorced and receives an VA settlement, he or she should be aware of the impact this could have to the benefits they receive.

In this regard, the main question is whether or not disability payments are considered assets that can be split in divorce. This question has been resolved in a variety of ways. One option is an Colorado court of appeals decision which concluded that VA disability payments are not property and cannot be divided as such. The other way is by an U.S. Supreme Court ruling in Howell which ruled that garnishing a veteran's VA disability benefits to pay for an alimony payment is a violation of the Uniformed Services Former Spouses Protection Act (USFSPA).

Another concern that is related to this subject is how disability benefits are interpreted for purposes of child support and maintenance. Both the USFSPA and the Supreme Court, prohibit states from utilizing disability benefits as income. However, some states have adopted the opposite approach. Colorado, for example, adds all income sources together to determine the amount needed to support a spouse. It then adds on disability payments in order to account for their tax-free status.

Finally, it is important for veterans to be aware of how their disability benefits will be affected when they get divorced and how their ex-spouses may affect their compensation. By being informed about these issues, vets can safeguard their benefits as well as avoid any unintended consequences.