How a Veterans Disability Settlement Can Affect a Divorce Case

Jim's client, a 58-year-old man, is permanently disabled as a result of his military service. He receives a monthly pension from the Department of Veterans Affairs.

He would like to be aware of whether a verdict by a jury will affect his VA benefits. It won't. However, it will have an impact on 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 in the military but are now permanently disabled as a result of injuries or illnesses. This settlement can allow you to receive compensation for your medical expenses, lost wages, and other expenses related to your injury or illness. The kind of settlement you will receive will depend on whether or not your injury or illness is service-related, what VA benefits you are eligible for, and the amount you will need to treat your accident or injury.

Jim is a 58 year old Vietnam veteran, was diagnosed as having permanent disabilities due to his two years of service. He isn't in a position to have enough work space to qualify for Social Security Disability benefits, however, he can claim a VA Pension that provides free medical care and cash depending on the financial needs of his. He would like to understand how a personal injury lawsuit will affect his ability to be eligible for this benefit.

The answer is contingent upon whether the settlement is in the form of one lump sum or a structured settlement. Structured settlements are settlements that are paid over a period of time rather than as a single payment, and the amount paid by the defendant is calculated to offset any existing VA benefits. A lump sum payout will likely alter any existing benefits as the VA considers it to be income and will annually calculate it. In any event, if extra assets are left over after the twelve-month period when the settlement is annualized Jim could be eligible for a new Pension benefit, but only if his assets are less than a minimum threshold that the VA is able to agree establishes financial need.

Do I need to hire an Attorney?

Many service members, spouses, and former spouses have concerns about VA disability payments and their impact on money issues in divorce. Some people think, for instance, that Department of Veterans Affairs compensation payments can be divided like the military retirement in a divorce case or that they're "off limits" in calculating child support and alimony. These misconceptions could lead grave financial errors.

While it is possible to make an initial claim for disability benefits on your own, the majority of disabled veterans require the help of a qualified attorney. A veteran's disability attorney can examine your medical records in order to gather the evidence needed to prove your argument before the VA. The lawyer can also help to file any appeals that you require to secure the benefits you are entitled to.

Most VA disability lawyers do not charge for consultations. The government also pays the lawyer directly from your amount of retroactive benefits. This is a benefit of the Equal Access to Justice Act. The amount of retroactive past due benefits your lawyer will be paid should be outlined in your fee agreement. For instance, a fee agreement can specify that the government will pay the attorney up to 20% of the retroactive benefits or provide. Any additional amount is your the responsibility of the attorney.

Can I Garnish My VA Benefits?

The VA pays a monthly amount of compensation to disabled veterans. The funds are intended to offset some of the effects of disability, illness or injuries that are sustained or aggravated by the veteran's military service. Like all income, the veterans disability benefits could be subject to garnishment.

Garnishment is a legal action which allows a court order an employer or government agency to take money from the paycheck of a person who is in debt and to send them directly to the creditor. In the case of divorce, garnishment may be used to pay for spousal support or child support.

However, there are certain situations in which a veteran's disability benefits could be garnished. Most often, it is the case of a veteran who waived his retirement from the military in order to receive disability compensation. In these situations, the portion of pension that is allocated to disability compensation can be garnished to cover the obligations of family support.

In other circumstances, veteran’s benefits can also be seized in order to cover medical expenses or federal student loans that are over due. In these cases the court could go directly to the VA for the information they require. It is important for disabled veterans disability law firm to work with a reputable attorney to ensure that their disability benefits are not removed. This will prevent them from relying on payday lenders or private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be an enormous benefit for veterans and their families, but they come with their own set of challenges. For instance when a veteran is divorced and receives a VA disability settlement, they should know what effect this will have on their benefits.

In this case, the main question is whether disability payments are considered assets that can be divided during a divorce. This issue has been addressed in a variety of ways. A Colorado court of appeals ruling determined that VA disability payments were not property and therefore could not be divided in this manner. Another way is through a U.S. Supreme Court ruling in Howell that ruled that garnishing the veteran's VA disability payments to pay for the payment of alimony is in violation of the Uniformed Services Former Spouses Protection Act (USFSPA).

Another concern related to this subject is the treatment of disability benefits to children for support and maintenance. The USFSPA and the Supreme Court both forbid states from claiming disability benefits as income for these purposes. However, some states have adopted the opposite approach. Colorado for instance adds all sources of income together to determine the amount required to support a spouse. The state then adds disability income to reflect their tax-free status.

Finally, it is important that veterans understand how their disability benefits will be affected if they become divorced and how their ex-spouses can garnish their compensation. By being informed about these issues, vets can ensure their compensation and avoid unintended consequences.