How a Veterans Disability Settlement Can Affect a Divorce Case

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

He would like to know how a jury award will impact his VA benefits. It won't. But it will have some impact on the other sources of income he has.

Can I get compensation in the event of an accident?

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

For example, Jim is a 58-year veteran who was diagnosed with permanent disabilities from two years of service during the Vietnam War. He does not have enough space for work to qualify for Social Security Disability benefits, however, he does have an VA Pension that offers cash and medical care for free dependent on the amount of money he needs. He would like to learn what the implications of 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 require the payment of over time instead of one single payment. The amount that defendant pays is calculated to offset the existing VA benefits. In contrast, a lump sum payment will likely impact any benefits already in place because the VA considers it to be income and will annually calculate it. In any case, if there are excess assets remain after the 12 month period when the settlement is 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 Need to Hire an Attorney?

Many spouses, service members and former spouses are confused about VA disability compensation and the impact it has on the financial aspects of a divorce case. Among other things, some people think that the Department of Veterans Affairs' compensation payments are able to be divided like a military pension a divorce or that they are "off limits" in calculation of child support and Vimeo alimony. These misconceptions can result in financial mistakes which can have serious consequences.

It is possible to submit a claim for disability benefits yourself However, most disabled veterans will require the help from a competent lawyer. An experienced veteran's disability lawyer can review your medical records and gather all the necessary evidence needed to build a strong argument to the VA. The lawyer can also file any appeals that you might require to receive the benefits you are entitled to.

Furthermore, the majority of VA disability lawyers do not charge fees for consultations. Additionally, the lawyer will generally be paid by the government directly from the retroactive past-due benefits. This is a benefit 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 that, for instance, the government will give the attorney up to 20 percent of retroactive benefits. Any additional amounts will be your the responsibility of the attorney.

Can I Garnish My VA Benefits?

When disabled schertz veterans disability law firm receive compensation from the VA the compensation is paid in the form of monthly payments. The funds are intended to alleviate some of the effects of diseases, disabilities or injuries incurred during or aggravated by the veteran's military service. The veterans disability benefits are subject to garnishment as is any other income.

Garnishment is a legal procedure that permits a court to decide that an employer or a government agency to take money from the wages of a person who owes money and send them directly to the creditor. In the event of divorce, garnishment can be used to pay child or spousal support.

There are certain situations where a veteran's benefits can be encashable. The most common scenario is veterans who have waived their military retirement to receive disability compensation. In these situations the portion of the pension that is attributed to disability benefits can be garnished for family support obligations.

In other cases it is possible for a veteran's benefits to be garnished to pay for medical expenses or past due federal student loans. In these cases, a court can go directly to the VA for the information they need. It is important for disabled veterans to hire a knowledgeable lawyer to ensure that their disability benefits are not taken away. This will prevent them from having to depend on private loans and payday lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a big help for veterans and their families, but they're not without their own set of issues. If a veteran gets divorced and receives a VA settlement then they must be aware of the impact this could have to the benefits they receive.

In this regard, the main question is whether or not disability benefits are considered assets that could be divided during a divorce. This question has been addressed in two ways. A Colorado court of appeals ruling declared that VA disability payments were not property and Vimeo therefore could not be divided this manner. The U.S. Supreme Court ruled in Howell that garnishing a veteran's VA disability payments to pay the purpose of alimony was in violation of USFSPA.

Another concern relating to this topic is the treatment of disability benefits for child support and maintenance. Both the USFSPA and the Supreme Court, prohibit states from claiming disability benefits as income. However, some states have taken different approaches. For instance, Colorado adds up all sources of income to determine how much in support a spouse requires and then adds disability payments to take into account that they are tax free.

Additionally, it is essential for veterans to be aware of how their disability compensation will be affected if they are divorced and how their spouses' ex-spouses could affect their compensation. By being aware of these issues, veterans can protect their income and avoid any unintended consequences.