How a Veterans Disability Settlement Can Affect a Divorce Case

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

He would like to find out if a verdict from a jury will impact his VA benefits. It won't. However, it will have an impact on the other sources of income he earns.

Can I get compensation for an Accident?

You could be eligible for a settlement in the event that you were a soldier but are now permanently disabled because of injuries or illnesses. This settlement can help you receive compensation for your medical expenses, lost wages, and other expenses related to your injury or illness. The kind of settlement you'll receive depends on whether your health condition is non-service connected, the VA benefits you qualify for, and how much your accident or injury will cost to treat.

For instance, Jim is a 58-year old veteran who was diagnosed with permanent disabilities from two years of service during the Vietnam War. He does not have enough working space to qualify for Social Security disability benefits but the VA Pension benefit that provides medical care and cash in accordance with financial need. He wants to know if a personal injury settlement will affect his ability to receive this benefit.

The answer is contingent upon whether the settlement is in the form of an unintentional lump sum or a structured settlement. Structured settlements are based on installments over time, rather than one lump sum payment. The amount paid by defendant is calculated to offset the existing VA benefits. However, a lump sum payment will likely affect any existing benefits because the VA considers it a tax-deductible income and will annually increase it. In any event, if extra assets remain after the 12 month period when the settlement is annualized, Jim could be eligible for a new pension benefit, but only if his assets fall lower than a threshold with which the VA determines to be a financial need.

Do I need to hire an attorney?

Many spouses, military personnel, and former spouses are confused about VA disability compensation and its effect on the financial aspects of a divorce case. Among other things, some people believe that the Department of stayton veterans disability attorney Affairs' compensation payments are able to be divided like a military pension in divorce or are "off limits" in calculation of child support and alimony. These misconceptions can result in financial mistakes which can have serious consequences.

While it is possible to submit an initial claim for disability benefits on your own, many disabled veterans require the assistance of an experienced lawyer. A veteran's disability lawyer can examine your medical records to gather the necessary evidence to prove your argument before the VA. The lawyer can also help to make any appeals you require to secure the benefits you deserve.

The majority of VA disability lawyers do not charge for consultations. Additionally, the lawyer will generally be paid by the government directly out of the retroactive past-due benefits. This is a benefit of the Equal Access to Justice Act. The percentage of retroactive past-due benefits that your lawyer will be paid should be outlined in your fee agreement. A fee agreement could say for instance that the government would pay the attorney 20% of retroactive benefits. You will be responsible for any additional amount.

Can I Garnish My VA Benefits?

The VA pays monthly compensation to disabled veterans. The payments are meant to offset some of the effects of disability, illness or injuries sustained or aggravated during a veteran's military service. The benefits for veterans' disability are subject to garnishment, just like other incomes.

Garnishment is a legal action that allows a court to make an order to an employer or government agency to withhold funds from the pay of someone who owes money and transfer them directly to the creditor. In the event of a divorce garnishment can be used for child or spousal maintenance.

There are situations where a veteran's benefits can be garnished. The most common scenario is that of a veteran who renounced his retirement from the military in order to receive disability compensation. In these instances, the amount of pension apportioned to disability pay could be garnished to meet family support obligations.

In other cases, a veteran's benefits can be withdrawn to cover medical expenses or past due federal student loans. In these situations a court may be able to the VA to obtain the necessary information. It is essential for disabled veterans to retain a knowledgeable lawyer to ensure that their disability benefits are not garnished. This can stop them from having to rely on payday lenders or private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be an enormous help for veterans and their families, however they do come with their own set-of complications. For example the case where a veteran is divorced and is awarded a VA disability settlement, they should be aware of how this could affect the benefits they receive.

In this case, a major question is whether or not disability payments count as assets that can be divided in a divorce. The question has been answered in two ways. A Colorado court of appeals ruling decided that VA disability payments were not property and therefore could not be divided in this way. The U.S. Supreme Court ruled in Howell, that garnishing a veteran’s VA disability benefits for an alimony payment was a violation of USFSPA.

Another concern related to this issue is the treatment of disability benefits for child support and maintenance. Both the USFSPA, as well as the Supreme Court, prohibit states from claiming disability benefits as income. However, certain states have adopted the opposite approach. Colorado for instance, adds all income sources together to determine the amount required to provide for a spouse. Colorado then adds on disability payments to account for their tax-free status.

Finally, it is important for Huntingdon veterans disability lawyer to be aware of how their disability compensation will be affected if they are divorced and how their ex-spouses may be able to garnish their compensation. By being aware of these issues, brooklyn center veterans disability lawsuit can safeguard their income and avoid unintended consequences.