How a Veterans Disability Settlement Can Affect a Divorce Case

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

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

Do I have the right to receive compensation for an accident?

You could be eligible for a settlement if have served in the military, but are now permanently disabled as a result of injuries or illnesses. This settlement can assist in compensating you for medical expenses, 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 service-related, what VA benefits you qualify for, as well as the cost to treat your injury or accident.

For instance, Jim is a 58-year veteran who was diagnosed with permanent disabilities from two years of service during the Vietnam War. Jim does not have enough work space to qualify for Social Security Disability benefits, however, he can claim an VA Pension that offers cash and medical treatment for free according to his financial need. He wants to understand what the implications of a personal injury settlement could affect his eligibility to be eligible for this benefit.

The answer will depend on whether the settlement is in the form of either a lump sum or structured settlement. Structured settlements consist of installments over time instead of a single payment. The amount paid by the defendant is calculated to offset the existing VA benefits. In contrast, a lump sum payment will likely affect existing benefits since the VA considers it income and will annualize it. In either case, if excess assets are left over after the period of twelve months when the settlement has been annualized Jim could be eligible for a new Pension benefit, but only if his assets fall less than a minimum threshold that the VA determines to be a financial need.

Do I need to employ an attorney?

Many spouses, military personnel, and former spouses are confused about VA disability compensation and its impact on the financial aspects of divorce cases. Some people believe, among other things, that Department of Veterans Affairs compensation payments can be split like the military retirement in a divorce case or that they're "off limits" when it comes to calculating child support and Alimony. These misconceptions can lead to financial errors that can have grave consequences.

It is possible to submit a claim for disability benefits on your own However, most disabled blue springs veterans disability attorney will benefit from the assistance of a qualified lawyer. A veteran's disability lawyer who is experienced 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 you might require to receive the benefits you are entitled to.

Furthermore, the majority of VA disability lawyers do not charge fees for consultations. In addition the lawyer will usually be paid by the government directly from the retroactive past-due benefits. This is an advantage of the Equal Access to Justice Act. Your fee agreement should clearly define the amount of retroactive benefits to be paid to your lawyer. For instance, a fee agreement can stipulate that the government will pay the lawyer up to 20% of retroactive benefits or pay. You are responsible for any additional amounts.

Can I Garnish My VA Benefits?

The VA pays monthly compensation to disabled winnetka veterans disability lawsuit (vimeo.com). The purpose of the payments is to alleviate some of the consequences of illnesses, disabilities or injuries sustained or aggravated during a veteran's military service. The benefits for veterans' disability are subject to garnishment like any other income.

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

There are some situations where the benefits of a veteran can be garnished. Most common is the veteran who waived his military retirement in order to receive disability compensation. In these cases the pension portion that is devoted to disability compensation can be garnished in order to meet family support obligations.

In other situations, veteran's benefit may be garnished in order to pay medical expenses or federal student loans that are over due. In these situations, a court can go directly to the VA to obtain the information they need. The disabled veteran should consult an experienced attorney to safeguard their disability benefits. This will prevent them from relying on payday lenders and private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be an enormous assistance to veterans and their families, however they come with their own set of issues. If a veteran is divorced and receives a VA settlement it is important to know what this will do to the benefits they receive.

One of the major issues in this context is whether or not disability payments are considered divisible assets in divorce. The question has been answered in two ways. A Colorado court of appeals ruling decided that VA disability payments were not property and could not be divided this way. Another way is through the U.S. Supreme Court ruling in Howell that ruled that garnishing a veteran's VA disability payments to pay for an alimony payment is a violation of the Uniformed Services Former Spouses Protection Act (USFSPA).

Another issue related to this topic is how the disability benefits are treated in the context of child maintenance and support. Both the USFSPA as well as the Supreme Court, prohibit states from counting disability benefits as income. Certain states use an alternative approach. For instance, Colorado adds up all sources of income to determine the amount in support a spouse will need and then adds up the disability payments to take into account that they are tax-free.

It is also vital that veterans know how divorce can affect their disability benefits and how their spouses who divorced could slash their benefits. By knowing about these questions, veterans can guard their income and avoid unintended consequences.