How a Veterans Disability Settlement Can Affect a Divorce Case

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

He wants to be aware of whether a verdict by a jury will impact his VA benefits. The answer is that it will not. It will, however, have an impact on his other sources of income.

Can I claim compensation in the event of an accident?

You could be eligible for a settlement if 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 bills, lost wages, and other expenses resulting from your injury or illness. The kind of settlement you can receive will depend on whether your injury or illness is a result of a service connection, the VA benefits you are eligible to receive, and the amount to treat your injury or accident.

For instance, Jim is a 58-year veteran who was diagnosed with permanent disabilities based on two years of service during the Vietnam War. He does not have enough work space to be eligible for Social Security disability benefits but the VA Pension benefit that provides cash and free medical assistance in accordance with financial need. He wants to find out if a personal injury settlement will affect his ability to get this benefit.

The answer depends on if the settlement is a lump-sum or a structured one. Structured settlements consist of payments over a period of time instead of one lump sum payment. The amount paid by defendant is calculated to offset the existing VA benefits. A lump sum settlement will affect any existing VA benefits as the VA will annually evaluate and consider it as income. If Jim has excess assets after the settlement is annually adjusted the applicant can apply again to be eligible for the pension benefit. However, his assets must be less than a certain threshold that the VA has set to establish financial necessity.

Do I need to employ an attorney?

Many spouses, members of the military, and former spouses have questions about VA disability payments and their impact on financial issues during a divorce. Some people think that the Department of Veterans Affairs' compensation payments are able to be divided like a military pension in a divorce or that they are "off limits" in the calculation of child support and Alimony. These misconceptions can result in financial mistakes that have serious consequences.

While it is possible to do an initial claim for disability benefits on your own, most disabled marathon veterans disability law firm get the assistance of a professional lawyer. A veteran's disability lawyer who is experienced will examine your medical records and gather the necessary evidence to make a convincing case to the VA. The lawyer can also file any appeals you may require to receive the benefits you deserve.

Additionally, the majority of VA disability lawyers charge no fees for consultations. In addition that the lawyer will normally be paid by the government directly from your award of retroactive past-due benefits. This is one of the benefits 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. For instance, a fee agreement can provide that the government can pay the attorney up to 20% of retroactive benefits or award. Any additional amount is your to pay.

Can I Garnish My VA Benefits?

The VA pays a monthly amount of compensation to disabled veterans. The purpose of the payments is to offset some of the effects of disabilities, diseases or injuries that are sustained or aggravated by the veteran's military service. The benefits for veterans with disabilities are subject to garnishment, as is any other income.

Garnishment is a legal action that permits a court to require an employer or government agency to deduct funds from the paycheck of a person who owes money, and then send them directly to the creditor. In the event of divorce, garnishment may be used to pay child or spousal care.

There are certain situations where a veteran's benefits can be garnished. The most frequent scenario involves those who have renounced their military retirement to get disability compensation. In these instances the pension portion that is devoted to disability pay can also be garnished to fulfill the family support obligations.

In other situations, veteran's benefits may also be seized in order to pay for medical expenses or federal student loans that are past due. In these situations the court might be able to go straight 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 are not taken away. This will prevent them from having to depend on payday and private loan lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements are an excellent help to Alexander city veterans disability law firm as well as their families. However they also come with their own set complications. For instance the case where a veteran is divorced and is awarded an VA disability settlement, they should know what effect this will have on their benefits.

One of the major issues in this context is whether or not the disability payments are considered divisible assets in divorce. This question has been resolved in a variety of ways. One method is an Colorado court of appeals decision which concluded that VA disability payments are not property, and therefore cannot be divided as such. Another method is the U.S. Supreme Court ruling in Howell that held that garnishing a veteran's VA disability benefits to pay Alimony is against the Uniformed Services Former Spouses Protection Act (USFSPA).

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

It is also vital that veterans are aware of the impact divorce has on their disability benefits and how their spouses who divorced can slash their income. By being aware of these issues, veterans can ensure the security of their income and avoid unwanted consequences.