How a Veterans Disability Settlement Can Affect a Divorce Case

Jim's 58-year-old client is permanently disabled from his service in the military. He is able to receive a monthly pension from the Department of Veterans Affairs.

He would like to know how the jury's verdict will impact his VA benefits. The answer is not. It will, however, affect his other income sources.

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

You could be eligible to receive a settlement if you were a soldier but are now permanently disabled because of injuries or illnesses. This settlement can help compensate you for medical bills, lost income, and other expenses resulting from your illness or injury. The type of settlement you'll get depends on whether or not your health condition is non-service connected, the VA benefits you are eligible for, and how much your injury or accident will cost to treat.

Jim is a 58 year veteran of Vietnam was diagnosed with permanent disabilities due to his two years of service. He does not have enough working space to qualify for Social Security disability benefits but He does have a VA Pension benefit that provides cash and free medical care dependent on financial need. He wants to understand how a personal injury lawsuit will affect his ability to get this benefit.

The answer is dependent on whether the settlement is a lump sum or a structured one. Structured settlements are payments made over a time period rather than as a single payment and the amount received by the defendant is used to offset any existing VA benefits. However, a lump sum payout is likely to alter any existing benefits as the VA considers it a tax-deductible income and will annually increase it. In the event that there are any excess assets are left after the 12 month period after the settlement is annually recalculated, Jim could reapply for the Pension benefit but only if his assets are less than a minimum threshold that the VA accepts as establishing financial need.

Do I need to hire an attorney?

Many service members, spouses and Veterans Disability Settlement former spouses are confused about VA disability compensation and its effect on financial issues in divorce cases. Some people believe, for instance, that Department of veterans disability case Affairs compensation payments can be divided like the military retirement in divorce proceedings or that they're "off limits" in calculating child support and Alimony. These misconceptions could lead serious financial errors.

While it is possible to file an initial claim for disability benefits on your own, the majority of disabled veterans disability lawsuit require the assistance of a skilled lawyer. An experienced veteran's disability lawyer will examine your medical records and gather the necessary evidence to present a strong case at the VA. The lawyer can also help to make any appeals you require to obtain the benefits you're entitled to.

Additionally, the majority of VA disability lawyers do not charge fees for consultations. In addition that the lawyer will normally be paid by the government directly from your retroactive past due benefits. This is an advantage of the Equal Access to Justice Act. The amount of retroactive past-due benefits your lawyer will receive should be clearly stated in your fee agreement. A fee agreement could say, for example, that the government will provide the attorney with 20 percent of retroactive benefits. Any additional amount is your obligation.

Can I Garnish My VA Benefits?

When disabled veterans receive compensation from the VA it is in the form of monthly payments. These payments are designed to help offset the impact of diseases, injuries or disabilities sustained or aggravated by a veteran's time of service. The benefits for veterans disability compensation with disabilities are subject to garnishment, just like any other income.

Garnishment is a legal procedure that allows a judge to make an order to an employer or government agency to deduct funds from the pay of an employee who is in debt and to send them directly to an individual creditor. In the event of a divorce garnishment can be used to pay child or spousal maintenance.

There are some situations where the benefits of a veteran can be repaid. The most common scenario involves veterans disability lawyers who have waived their military retirement to receive disability compensation. In these scenarios, the portion of pension that is devoted to disability payments can be garnished in order to cover the obligations of family support.

In other instances, a veteran's benefit may be seized in order to pay medical bills or federal student loans that are past due. In these situations the court may be able to the VA to get the required information. It is important for a disabled veteran to find a competent attorney to ensure that their disability benefits aren't removed. This will help them avoid having to depend on private loans and payday lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a huge assistance to veterans disability attorney and their families, however they do come with their own set of challenges. For instance, if a veteran gets divorced and is awarded an VA disability settlement, Veterans Disability Settlement they need to know how this could affect their benefits.

In this context, a major question is whether or not disability payments are considered to be assets that can be divided during a divorce. This question has been resolved in a variety of ways. One option is the Colorado court of appeals ruling that concluded that VA disability payments are not property and therefore cannot be divided in that way. The U.S. Supreme Court ruled in Howell that garnishing a veteran's VA disability payments for Alimony was against the USFSPA.

Another issue that is related to this issue is the treatment of disability benefits for child maintenance and support. Both the USFSPA, and the Supreme Court, prohibit states from counting disability benefits as income. However, some states have taken an alternative approach. For instance, Colorado adds up all sources of income to determine how much in support a spouse requires and then adds disability benefits to take into account that they are tax-free.

It is also essential that veterans understand how divorce can affect their disability benefits and how their spouses who divorced could take advantage of their compensation. By being informed about these issues, vets can protect their income as well as avoid any unintended consequences.