How a Veterans Disability Settlement Can Affect a Divorce Case

Jim's client, a 58-year-old man, is permanently disabled as a result of his military service. He receives a monthly Pension benefit from the Department of Joliet Veterans Disability Attorney Affairs.

He would like to know how an award from a jury will affect his VA benefits. The answer is that it will not. It will, however, have an impact on his other sources of income.

Can I Get Compensation for an accident?

If you have served in the military but are now permanently disabled because of injuries or illnesses, you could be eligible for a veterans disability settlement. This settlement will allow you to get compensation for medical bills, lost wages, and other expenses resulting from your injury or illness. The kind of settlement you are eligible for will depend on whether or not your injury or illness is service-connected, what VA benefits you qualify to receive, and the amount to treat your injury or accident.

For instance, Jim is a 58-year old veteran who was diagnosed with permanent disabilities after two years of service during the Vietnam War. He does not have enough work space to qualify for Social Security Disability benefits, however, he can claim the VA Pension, which provides free medical care and cash according to his financial need. He would like 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 are based on payments over time rather than one lump sum payment. The amount paid by defendant is calculated to offset existing VA benefits. In contrast, a lump sum payment will likely affect existing benefits since the VA considers it as income and will increase it. If Jim has assets that are not used up after the settlement has been annualized 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 that establishes financial necessity.

Do I need to hire an attorney?

Many service members, spouses and former spouses are confused about VA disability compensation and the impact it has on money issues in divorce cases. In addition, some people believe that the Department of Veterans Affairs' compensation payments are able to be divided like a military pension divorce or are "off limits" in calculation of child support and alimony. These misconceptions can lead to serious financial errors.

It is possible to file an application for disability benefits yourself however, the majority of disabled bellflower veterans disability lawsuit would benefit from the assistance from a competent lawyer. A skilled veteran's disability lawyer can examine your medical records and gather all the necessary evidence to support your argument to the VA. The lawyer can also help to file any appeals that you require to secure the benefits you deserve.

In addition, the majority of VA disability lawyers don't charge fees for consultations. The government also pays the lawyer directly from the award of retroactive benefits. This is a benefit of the Equal Access to Justice Act. Your fee agreement should specify clearly the percentage of retroactive benefits that will be paid to your lawyer. A fee agreement could stipulate that, for example, the government would provide the attorney with 20 percent of retroactive benefits. Any additional amounts will be your obligation.

Can I Garnish My VA Benefits?

When a disabled veteran receives compensation from the VA, it comes in the form of monthly payments. The funds are intended to compensate for some of the consequences of illnesses, disabilities or injuries that are sustained or aggravated during a veteran's military service. Like all incomes, veterans disability benefits are subject to garnishment.

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

However, there are certain situations in which a veteran's disability benefits could be garnished. The most common scenario involves veterans who have waived their military retirement in order to claim disability compensation. In these cases, the portion of pension that is devoted to disability benefits can be garnished in order to cover the obligations of family support.

In other situations veterans' benefits could be seized to pay medical expenses or past due federal student loans. In these situations the court may be able to the VA to obtain the necessary information. A disabled veteran should employ an experienced attorney to protect their disability benefits. This will stop them from relying on payday lenders and private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a huge assistance to veterans and their families. However they have their own set complications. If a person divorces and receives a VA settlement it is important to be aware of what this might do to their benefits.

In this case, a major question is whether or not disability benefits are considered assets which can be divided in divorce. This issue has been addressed in a variety of ways. One option is a Colorado court of appeals ruling that concluded that VA disability payments are not property, and therefore cannot be divided in this way. The U.S. Supreme Court ruled in Howell that garnishing a veteran’s VA disability payments to pay an alimony payment was a violation of USFSPA.

Another concern related to this subject is the treatment of disability benefits for child support and maintenance. The USFSPA and the Supreme Court both forbid states from claiming disability benefits as income for these purposes. However, certain states have adopted different approaches. For instance, Colorado adds up all sources of income to determine how much in support a spouse will need and then pluses up the disability payments to take account that they are tax free.

It is also vital that veterans understand how divorce affects their disability benefits and how their ex spouses could take advantage of their compensation. By being informed about these issues, veterans can protect their compensation as well as avoid the unintended consequences.