How a Ontario Veterans Disability Law Firm Disability Settlement Can Affect a Divorce Case

Jim's client, 58 years old, is permanently disabled from his time in the military. He receives a monthly pension benefit from the Department of Veterans Affairs.

He wants to know how the verdict of a jury will impact his VA benefits. It won't. However, it will have an impact on the income sources of his other income sources.

Can I receive compensation in the event of an accident?

If you've served in the military, and are permanently disabled because of injuries or illnesses, you may be eligible for a veterans disability settlement. This settlement will allow you to receive compensation for your medical bills, lost wages, and other costs resulting from your injury or illness. The type of settlement you will receive will depend on whether your injury or illness is service-related, what VA benefits you are eligible to receive, and the amount to treat your accident or injury.

Jim, a 58-year veteran of the Vietnam war, was diagnosed as having permanent disabilities as a result of his two years of service. He isn't in a position to have enough space for work to qualify for Social Security Disability benefits, however, he does have a VA Pension that provides free medical care and cash dependent on the amount of money he needs. He wants to be aware of whether a personal injury settlement will affect his ability to get this benefit.

The answer will depend on whether the settlement is in the form of a lump sum or a structured settlement. Structured settlements are those that are made over a long period of time rather than in a single payment and the amount paid by the defendant is used to offset any existing VA benefits. However, a lump sum payout will likely impact any benefits already in place because the VA considers it income and will annualize it. In any event, if extra assets are left after the twelve month period when the settlement is annualized Jim could be eligible for a new pension benefit, but only if his assets fall below a threshold that the VA determines to be a financial need.

Do I require an attorney?

Many spouses, service members and former spouses have questions about VA disability benefits and their effect on financial issues during a divorce. There are many other reasons, but some people think that the Department of Veterans Affairs' compensation payments are able to be divided like a pension from a military service in a divorce or that they are "off limits" in calculation of child support and alimony. These misconceptions can lead to financial errors that have serious repercussions.

It is possible to file a claim for disability benefits by yourself, but most disabled veterans will benefit from the assistance from a competent lawyer. A qualified veteran's disability lawyer can examine your medical documents and gather the required evidence to make a convincing case at the VA. The lawyer can also file any appeals that you may need in order to get the benefits you deserve.

Additionally, the majority of VA disability lawyers don't charge fees for consultations. The government will also pay the lawyer directly from the award of retroactive benefits. This is one of the benefits of the Equal Access to Justice Act. The fee agreement should clearly define the proportion of retroactive benefits that will be paid to your lawyer. A fee agreement may stipulate for instance that the government would pay the attorney up 20% of retroactive benefits. You are responsible for any additional amount.

Can I Garnish My VA Benefits?

The VA pays monthly compensation to disabled veterans. The payments are intended to offset the effects of illnesses, injuries or disabilities that were sustained or aggravated during the course of a veteran's service. The veterans disability benefits are subject to garnishment, as is any other income.

Garnishment can be a legal proceeding which allows a court make an order to an employer or government agency to withhold funds from the pay of someone who owes money, and then send them directly to an individual creditor. In the event of a divorce, garnishment can be used to pay for spousal support or child support.

There are a few situations in which a veteran's benefits can be repaid. The most common scenario is a veteran who waived their military retirement to receive disability compensation. In these situations, the amount of pension allocated to disability payments could be garnished to meet family support obligations.

In other instances it is possible for a veteran's benefits to be garnished to pay for medical expenses or past due federal student loans. In these instances, a court can go directly to the VA to obtain the information they need. A disabled veteran should employ an experienced attorney to safeguard their disability benefits. This will help them avoid having to rely on private loans and payday lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a huge aid to veterans and their families, but they do come with their own set of challenges. If a veteran is divorced and receives an VA settlement then they must be aware of what this might do to the benefits they receive.

In this context the most important question is whether or not disability payments are considered assets that could be divided in divorce. This issue has been settled in a couple of ways. A Colorado court of appeals ruling decided that VA disability payments were not property and could not be divided in this way. Another way is through an U.S. Supreme Court ruling in Howell that ruled that garnishing the veteran's VA disability benefits to pay the payment of alimony is in violation of the Uniformed Services Former Spouses Protection Act (USFSPA).

Another concern related to this issue is how disability benefits are interpreted for purposes of child maintenance and support. Both the USFSPA, as well as the Supreme Court, prohibit states from utilizing disability benefits as income. Certain states take an alternative approach. Colorado for instance, adds all income sources together to determine the amount required to support a spouse. It then adds disability income in order to account for their tax-free status.

It is also important for tyler veterans disability attorney to know how their disability compensation will be affected if they become divorced and how their ex-spouses can take advantage of their benefits. By being aware of these issues, veterans can protect their income and avoid unintended consequences.