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 receives a monthly Pension benefit from the Department of Veterans Affairs.

He wants to know how a jury award will affect his VA benefits. The answer is not. However, it will affect his other income sources.

Can I Get Compensation in the event of an accident?

You may be eligible to receive a settlement if you served in the military but are now permanently disabled because of injuries or illnesses. This settlement can help compensate you for medical bills, lost income, and other expenses that resulted from your injury or sickness. The type of settlement you will receive will depend on whether your illness or injury is a result of a service connection, the VA benefits you qualify for, and the amount you will need to treat your accident or injury.

Jim, a 58 year veteran of the Vietnam war was diagnosed with permanent disabilities as a result of his two years of service. He does not have enough work space to qualify for Social Security disability benefits but there is a VA Pension benefit, which offers medical care and cash dependent on financial need. He would like to determine if a personal accident settlement would affect his ability be eligible for this benefit.

The answer is dependent on whether the settlement is a lump sum or a structured one. Structured settlements are those that are made over a long period of time rather than a single payment and the amount paid by the defendant is calculated to offset any existing VA benefits. However, a lump sum payout is likely to alter any existing benefits as the VA considers it to be income and will annually calculate it. If Jim has assets that are not used up after the settlement has been annualized, he can reapply to receive the Pension benefit. However the assets must be less than a certain threshold that the VA has set to establish financial necessity.

Do I really need to hire an attorney?

Many spouses, service members and former spouses are confused about VA disability compensation and its effect on financial issues in divorce cases. 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" when it comes to calculation of child support and Alimony. These misconceptions could lead grave financial errors.

While it is possible to do an initial claim for disability benefits on your own, the majority of disabled ada veterans disability lawyer require the assistance of a professional lawyer. A veteran's disability attorney will look over your medical records and collect the evidence necessary to prove your case to the VA. The lawyer can also help to file any appeals that you require to secure the benefits you are entitled to.

In addition, the majority of VA disability lawyers charge no fees for consultations. The government will also pay the lawyer directly from your benefit of retroactive benefits. This is an advantage of the Equal Access to Justice Act. Your fee agreement should clearly specify the amount of retroactive benefits to be paid to your lawyer. A fee agreement could state for instance that the government would pay the attorney up 20 percent of retroactive benefits. Any additional amounts will be your obligation.

Can I Garnish My VA Benefits?

The VA offers monthly payments to disabled veterans. The funds are intended to offset some of the effects of disabilities, diseases or injuries incurred during or aggravated due to a veteran's military service. The benefits for veterans' disability are subject to garnishment like any other income.

Garnishment permits a court order that an employer or a government agency withhold funds from the paycheck of an individual who owes an obligation and pay it directly to the creditor. In the event of a divorce the garnishment could be used for child or spousal care.

However, there are certain situations in which a veteran's disability benefits could be repaid. The most frequent is the veteran who has renounced his retirement from the military in order to receive disability compensation. In these cases, the amount of pension apportioned to disability pay could be garnished to meet family support obligations.

In other cases, a veteran's benefit may be seized in order to pay medical bills or federal student loans that are over due. In these instances a court may be able to go straight to the VA to obtain the necessary information. It is vital for disabled veterans to find a competent lawyer to ensure that their disability benefits are not being snatched away. 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 odessa veterans disability lawsuit and their families, but they don't come without their own set-of complications. If a veteran divorces and receives an VA settlement, he or she should be aware of the impact this could have to the benefits they receive.

One of the major issues in this context is whether or not the disability benefits are considered divisible assets in a divorce. This question has been resolved in a couple of ways. One way is by the Colorado court of appeals decision which concluded that VA disability payments are not property, and therefore cannot be divided as such. The U.S. Supreme Court ruled in Howell, that garnishing a veteran’s VA disability payments for alimony was a violation of USFSPA.

Another concern with this subject is the treatment of disability benefits to children for support and maintenance. The USFSPA and the Supreme Court both forbid states from counting disability payments as income to be used for this purpose. However, certain states have chosen to take the opposite approach. Colorado is one example. It takes all income sources together to determine the amount required to support a spouse. The state then adds disability benefits in order to take into account their tax-free status.

In the end, it is crucial for veterans to understand how their disability benefits will be affected when they get divorced and how their spouses who divorced them can garnish their compensation. If they are aware of these issues, mountain Brook veterans disability attorney can protect their compensation and avoid unintended consequences.