How a Veterans Disability Settlement Can Affect a Divorce Case

Jim's 58 year old client is permanently disabled because of his time in the military. He receives a monthly pension benefit from the Department of veterans disability case Affairs.

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

Can I claim compensation in the event of an accident?

You may be eligible to receive a settlement if you have served in the military, but are now permanently disabled because of injuries or illnesses. This settlement can help you get compensation for medical bills, lost wages and other expenses that result from your illness or injury. The type of settlement you'll get will depend on whether the condition is service-connected or not connected, which VA benefits you qualify for, as well as the amount your injury or accident will cost to treat.

For instance, Jim is a 58-year old veteran who was diagnosed with permanent disabilities based on two years of service during the Vietnam War. He doesn't have enough work quarters to be eligible for Social Security disability benefits but there is a VA Pension benefit that offers cash and medical treatment for free based on financial need. He wants to understand how a personal injury settlement could affect his eligibility to get this benefit.

The answer will depend on whether the settlement is a lump sum or a structured one. Structured settlements are the ones that are paid over a time period rather than a single payment and the amount paid by the defendant is calculated to offset any existing VA benefits. However, a lump sum payout is likely to affect existing benefits since the VA considers it as income and will increase 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 fall less than a minimum threshold that the VA agrees establishes financial need.

Do I need to employ an attorney?

Many spouses, military personnel, and former spouses are confused about VA disability compensation and the impact it has on the financial aspects of a divorce case. There are many other reasons, but some people believe that the Department of Veterans Affairs' compensation payments can be divided like a military pension in a divorce or that they are "off limits" when it comes to calculation of child support and Alimony. These misconceptions can lead to financial errors which can have serious consequences.

While it is possible to submit an initial claim for disability benefits by yourself, the majority of disabled veterans disability legal benefit from the assistance of a skilled lawyer. A skilled veteran's disability lawyer will examine your medical documents and gather the required evidence to make a convincing case to the VA. The lawyer will also be able to submit any appeals you require to receive the benefits you are entitled to.

The majority of VA disability lawyers don't charge for consultations. Additionally the lawyer will typically be paid by the government directly from your retroactive past-due benefits. This is a benefit of the Equal Access to Justice Act. The amount of retroactive past-due benefits that your lawyer will be paid should be outlined in your fee agreement. For instance your fee agreement may specify that the government will pay the lawyer up to 20% of retroactive benefits or award. The attorney is responsible for any additional amounts.

Can I Garnish My VA Benefits?

When a disabled veteran receives compensation from the VA it is in the form of monthly payments. The purpose of the payments is to help offset the effects of disabilities, diseases or injuries incurred during or aggravated by the veteran's military service. Like all incomes, veterans disability attorneys disability benefits are subject to garnishment.

Garnishment is a court-ordered procedure that an employer or government agency stop cash from the pay of a person who has the debt and pay it directly to a creditor. In the event of divorce, garnishment can be used for child or spousal support.

However, there are certain situations where disability benefits may be garnished. Most often, it is the case of a veteran who has waived his retirement from the military in order to receive disability compensation. In these cases, the amount of pension allocated to disability payments could be garnished to meet family support obligations.

In other situations, veteran's benefits could be seized in order to pay medical bills or federal student loans that are past due. In these cases the court can go directly to the VA for the information they need. A disabled veteran should seek out an experienced attorney to secure their disability benefits. This can help them avoid being forced to rely on payday and private loan lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a huge help to veterans and their families. However they have their own set complications. For example the case where a veteran is divorced and receives a VA disability settlement, they need to know how this will affect their benefits.

A major issue in this regard is whether or not disability payments are considered to be divisible assets in a divorce. This question has been resolved in two ways. One method is a Colorado court of appeals ruling that concluded that VA disability payments are not property and can't be divided in that way. Another way is through the U.S. Supreme Court ruling in Howell which held that garnishing a veteran's VA disability payments to pay for an alimony payment is a violation of the Uniformed Services Former Spouses Protection Act (USFSPA).

Another issue related to this topic is how the disability benefits are interpreted for purposes of child support and maintenance. Both the USFSPA, and the Supreme Court, prohibit states from counting disability benefits as income. Certain states employ different methods. Colorado for instance, takes all income sources together to determine the amount needed to support a spouse and then adds disability payments to reflect their tax-free status.

It is also crucial to know how divorce will affect their disability benefits and how ex-spouses could slash their benefits. By being knowledgeable about these issues, veterans disability settlement veterans can ensure the security of their income and avoid unwanted consequences.