How a Veterans Disability Settlement Can Affect a Divorce Case

Jim's 58 year old client is permanently disabled from his time in the military. He receives a monthly Pension benefit from the Department of veterans disability lawsuit Affairs.

He wants to know if the verdict of a jury will impact his VA benefits. It will not. However, it will have an impact on the income sources of his other income sources.

Can I receive compensation for an accident?

If you have served in the military and are now permanently disabled as a result of injuries or illnesses, you could be eligible for a veterans disability settlement. This settlement can assist in compensating you for medical expenses, lost income and other expenses resulting from your injury or sickness. The kind of settlement you'll be able to get will depend on whether the condition is service-connected or non-service connected, what VA benefits you qualify for, as well as the amount your accident or injury will cost to treat.

For example, Jim is a 58-year veteran who was diagnosed with permanent disabilities from two years of service during the Vietnam War. He hasn't got enough work space to be eligible for Social Security disability benefits but he does have a VA Pension benefit, which offers cash and free medical assistance based on financial need. He would like to find out if a personal injury settlement would affect his eligibility to get this benefit.

The answer depends on whether the settlement is in the form of either a lump sum or structured settlement. Structured settlements require payments over time, rather than one single payment. The amount that defendant pays is calculated to offset the existing VA benefits. In contrast, a lump sum payment will likely affect any existing benefits because the VA considers it a tax-deductible income and will annually increase it. If Jim has excess assets after the settlement is annually adjusted 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 to establish financial necessity.

Do I really need to hire an attorney?

Many service members, spouses, and former spouses have questions about VA disability payments and their impact on money issues during divorce. Some people think, for instance, that Department of veterans disability attorneys Affairs compensation payments can be divided like a military retirement in divorce cases or that they're "off limits" when calculating child support and Alimony. These misconceptions may lead to grave financial errors.

It is possible to submit a claim for disability benefits on your own, but most disabled veterans would benefit from the assistance of a professional lawyer. An experienced veteran's disability lawyer can review your medical documents and gather the required evidence to support your argument to the VA. The lawyer can also help to submit any appeals you require to receive the benefits you deserve.

Most VA disability lawyers don't charge for consultations. The government will also pay the lawyer directly from the payment of retroactive 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. A fee agreement could state, for example, that the government will provide the attorney with 20% of retroactive benefits. Any additional amounts will be your responsibility.

Can I Garnish My VA Benefits?

If a disabled veteran receives compensation from the VA, it comes in the form of monthly payments. The payments are intended to offset the effects of illnesses, injuries or disabilities that were suffered or aggravated during a veteran's time of service. Like all income, the veterans disability benefits can be subject to garnishment.

Garnishment can be a legal proceeding that permits a court to make an order to an employer or government agency to take money from the wages of a person who owes money, and then send them directly to the creditor. In the event of a divorce the garnishment could be used for child or spousal maintenance.

There are situations where a veteran's benefits can be garnished. The most common situation involves a veteran who waived their military retirement in order to claim disability compensation. In these situations the amount of pension apportioned to disability pay can be garnished for 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 past due. In these cases the court may be able to go straight to the VA to get the required information. The disabled veteran should consult an experienced lawyer to protect their disability benefits. This can help them avoid being forced to rely on payday loans or private loans. lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a huge benefit for veterans and their families, but they don't come without their own set-of complications. For example, if a veteran gets divorced and receives an VA disability settlement, they should know what this means for their benefits.

A major issue in this context is whether or not disability payments are considered to be divisible assets in divorce. This issue has been addressed in a variety of ways. A Colorado court of appeals decision determined that VA disability payments were not property and therefore could not be divided in this way. The other way is by an U.S. Supreme Court ruling in Howell that held that garnishing the veteran's VA disability payments to pay alimony is a violation of the Uniformed Services Former Spouses Protection Act (USFSPA).

Another concern with this topic is the treatment of disability benefits to children for support and maintenance. Both the USFSPA as well as the Supreme Court, prohibit states from claiming disability benefits as income. Some states have different approaches. For instance, Colorado adds up all sources of income to determine how much in support a spouse will need and then adds the disability benefits to take into account that they are tax-free.

It is also essential to know how divorce will affect their disability benefits and how their ex spouses can slash their income. By being knowledgeable about these issues, veterans can ensure the security of their income and avoid unintended consequences.