How a Veterans Disability Settlement Can Affect a Divorce Case

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

He wants to know if a jury award will impact his VA benefits. The answer is that it will not. However, it will affect the other sources of income he earns.

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

You could be eligible for a settlement if you have served in the military, but are now permanently disabled because of injuries or illnesses. This settlement will help pay you for medical bills, lost income and other costs that resulted from your injury or sickness. The kind of settlement you could receive 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 accident or injury.

For instance, Jim is a 58-year veteran who was diagnosed with permanent disabilities after two years of service during the Vietnam War. He doesn't have enough space for work to be eligible for Social Security Disability benefits, however, he is able to claim the VA Pension which offers free medical treatment and cash depending on the financial needs of his. He wants to know if a personal injury settlement would affect his ability receive this benefit.

The answer will depend on whether the settlement is a lump-sum or a structured one. Structured settlements consist of payments over a period of time rather than one single payment. The amount paid by the defendant is calculated to offset existing VA benefits. In contrast, a lump sum settlement will probably affect existing benefits since the VA considers it as income and will increase it. In any case, if there are excess assets are left after the twelve 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 agrees establishes financial need.

Do I Need to Hire an Attorney?

Many spouses, service members, and former spouses have concerns about VA disability benefits and their impact on money issues during divorce. Some people believe that the Department of Veterans Affairs' compensation payments can 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 file an initial claim for disability benefits on your own, most disabled lufkin veterans disability lawsuit benefit from the assistance of an experienced lawyer. An experienced veteran's disability lawyer can examine your medical records and gather all the necessary evidence to support your case at the VA. The lawyer will also be able to submit any appeals you require to obtain the benefits you are entitled to.

Additionally, the majority of VA disability lawyers charge no fees for consultations. In addition, the lawyer will generally be paid by the government directly out of your retroactive past-due benefits. This is an advantage of the Equal Access to Justice Act. The amount of retroactive past due benefits your lawyer will receive should be clearly outlined in your fee agreement. For instance the fee agreement could specify that the government will pay the lawyer up to 20% of the retroactive benefits or give. Any additional amount is your responsibility.

Can I Garnish My VA Benefits?

If a disabled veteran is granted compensation from the VA, it comes in the form of monthly payments. The purpose of the payments is to compensate for some of the effects of disability, illness, or injuries sustained during or aggravated by a veteran's military service. As with all income, benefits for veterans with disabilities are subject to garnishment.

Garnishment is a legal process which allows a court order an employer or government agency to take money from the wages of a person who owes money and send them directly to an individual creditor. In the case of a divorce, garnishment can be used to pay spousal maintenance or child support.

However, there are some situations in which a veteran's disability benefits may be garnished. Most often, it is the case of a veteran who renounced his military retirement to receive disability compensation. In these cases the amount of pension that is attributed to disability benefits can be garnished for family support obligations.

In other instances, a veteran's benefits may also be garnished in order to pay medical expenses or federal student loans that are past due. In these cases, a court may be able to the VA to get the required information. It is important for disabled veterans to find a competent lawyer to ensure that their disability benefits are not being snatched away. This can prevent them from having to rely on payday lenders or private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements are an excellent help to veterans and their families. However they also come with their own set complications. If a veteran is divorced and receives an VA settlement it is important to be aware of what this might do to the benefits they receive.

A major issue in this regard is whether or not disability benefits are considered divisible assets in divorce. This issue has been settled in a variety of ways. A Colorado court of appeals ruling declared that VA disability payments were not property and therefore could not be divided this manner. The U.S. Supreme Court ruled in Howell that garnishing a veteran’s VA disability payments for Alimony was against the USFSPA.

Another issue that is related to this topic is the treatment of disability benefits for child 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 taken a different approach. For instance, Colorado adds up all sources of income to determine how much in support a spouse will need and then adds up the disability payments to take account that they are tax-free.

It is also important for veterans to know how their disability compensation will be affected if they become divorced and how their spouses' ex-spouses could affect their compensation. By being aware of these issues, vets can protect their income and avoid unintended consequences.