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How a Veterans Disability Settlement Can Affect a Divorce Case

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

He wants to know if a verdict of a juror will affect his VA benefits. The answer is that it will not. However, it will have an impact on the other sources of income he has.

Can I get compensation for an Accident?

If you've been in the military, and are permanently disabled because of injuries or illnesses, you may be eligible for a veterans disability settlement. This settlement will pay you for medical bills, lost income, and other expenses resulting from your illness or injury. The type of settlement you can receive will depend on whether your injury or illness is service-related, what VA benefits you qualify to receive, and the amount to treat your injury or accident.

Jim, a 58 year veteran of Vietnam was diagnosed with permanent disabilities due to his two years of service. He does not have enough work space to be eligible for Social Security disability benefits but He does have a VA Pension benefit, which offers cash and medical treatment for free based on financial need. He wants to understand how a personal injuries settlement can affect his ability to receive this benefit.

The answer is contingent upon whether the settlement is in the form of one lump sum or a structured settlement. Structured settlements require payments over a period of time instead of one lump sum payment. The amount paid by defendant is calculated to offset existing VA benefits. A lump sum settlement can impact any existing VA benefits as the VA will annually evaluate and consider it to be income. If Jim has assets that are not used up after the settlement has been annualized then he is eligible 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 require an attorney?

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

It is possible to submit a claim for disability benefits on your own however, the majority of disabled veterans would require the help of a qualified lawyer. A veteran's disability lawyer who is experienced will review your medical documents and gather the necessary evidence to present a strong case to the VA. The lawyer will also be able to file any appeals you may require to obtain the benefits you're entitled.

Most VA disability lawyers do not charge for consultations. The government also pays the lawyer directly from your amount of retroactive benefits. This is a benefit of the Equal Access to Justice Act. The percentage of retroactive past-due benefits that your lawyer will receive should be clearly stated in your fee agreement. A fee agreement could say that, for instance, the government would pay the attorney up 20 percent of retroactive benefits. You will be responsible for any additional amounts.

Can I Garnish My VA Benefits?

If a disabled veteran is granted compensation from the VA it is received in the form of monthly payments. The funds are intended to alleviate some of the effects of diseases, disabilities or injuries sustained or aggravated due to a veteran's military service. Like all incomes, veterans disability benefits can be subject to garnishment.

Garnishment is a court-ordered procedure that an employer or government agency stop money from the wages of a person who has the debt and pay it directly to a creditor. In the event of a divorce the garnishment could be used for child or spousal maintenance.

However, there are some circumstances where a veteran's disability benefits may be refunded. The most common scenario is those who have renounced their military retirement in order to receive disability compensation. In these cases the amount of pension that is attributed to disability benefits may be garnished for lawyers family support obligations.

In other instances it is possible for a veteran's benefits to be garnished to pay for medical expenses or past due federal student loans. In these situations a court may be able to directly to the VA to get the required information. A disabled veteran should employ an experienced attorney to protect their disability benefits. This can help them avoid having to rely on payday and private loan lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a major aid to rialto veterans disability law firm and their families, however they're not without their own set of challenges. For example the case where a veteran is divorced and receives an VA disability settlement, they need to know what this means for their benefits.

In this regard, the main question is whether or not disability payments count as assets that could be divided during a divorce. This question has been resolved in two ways. A Colorado court of appeals decision declared that VA disability payments were not property and could not be divided this manner. Another method is the U.S. Supreme Court ruling in Howell which held that garnishing a veteran's VA disability benefits to pay alimony is a violation of the Uniformed Services Former Spouses Protection Act (USFSPA).

Another concern related to this issue is how disability benefits are treated in the context of child maintenance and support. The USFSPA and the Supreme Court both forbid states from counting 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 is entitled to and then adds disability payments to take into account that they are tax free.

It is also important that veterans are aware of how divorce can affect their disability benefits and how their ex spouses could slash their benefits. By being informed about these issues, veterans can protect their compensation as well as avoid the unintended consequences.