How a Veterans Disability Settlement Can Affect a Divorce Case

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

He would like to know if a jury verdict will impact his VA benefits. It won't. However, it will have an impact on the income sources of his other income sources.

Can I Receive Compensation in the event of an accident?

You may be eligible to receive a settlement if you served in the military but are now permanently disabled as a result of injuries or illnesses. This settlement can help compensate you for medical bills, lost income and other costs that resulted from your injury or sickness. The kind of settlement you'll receive depends on whether your condition is service-connected or non-service connected, the VA benefits you qualify for, as well as the amount your injury or accident will cost to treat.

Jim is a 58 year veteran of Vietnam, was diagnosed as having permanent disabilities due to his two years of service. He does not have enough working space to qualify for Social Security disability benefits but the VA Pension benefit which provides cash and medical treatment for free based on financial need. He would like to find out if a personal injury settlement could affect his ability to get this benefit.

The answer depends on if the settlement is a lump sum or a structured one. Structured settlements consist of installments over time, rather than one single payment. The amount that defendant pays is calculated to offset existing VA benefits. However, a lump sum payment will likely affect any existing benefits because the VA considers it a tax-deductible income and will annually increase it. In any case, if there are excess assets are left over after the twelve month period after the settlement is annually recalculated, Jim could apply again for the Pension benefit, but only if his assets fall below a certain threshold that the VA agrees establishes financial need.

Do I require an attorney?

Many service members, spouses, and former spouses are concerned about VA disability payments and their impact on money issues during a divorce. Some people think, for instance, that the Department of powell veterans disability law firm Affairs compensation payments can be divided like military retirements in divorce proceedings or that they're "off limits" when it comes to calculating child support and xilubbs.xclub.tw Alimony. These misconceptions could lead to serious financial mistakes.

While it is possible to do an initial claim for disability benefits on your own, most disabled veterans require the assistance of a professional attorney. A skilled veteran's disability lawyer will examine your medical records and gather all the necessary evidence to support your argument to the VA. The lawyer can also file any appeals that you might require to get the benefits you are entitled to.

Moreover, most VA disability lawyers do not charge fees for consultations. The government also pays the lawyer directly from the payment of retroactive benefits. This is an advantage of the Equal Access to Justice Act. Your fee agreement should clearly specify the proportion of retroactive benefits that will be paid to your lawyer. A fee agreement could stipulate that, for example, the government would give the attorney up to 20% of retroactive benefits. You will be accountable for any additional amounts.

Can I Garnish My VA Benefits?

When disabled veterans receive compensation from the VA it is in the form of monthly payments. These payments are designed to alleviate some of the effects of disability, illness or injuries sustained or aggravated during a veteran's military service. Like all incomes, Pahokee veterans disability Law firm disability benefits could be subject to garnishment.

Garnishment allows a court order that an employer or government agency stop cash from the pay of an individual who owes an obligation and pay it directly to a creditor. In the event of divorce, garnishment may be used to pay child or spousal care.

However, there are certain situations where disability benefits can be refunded. Most often, it is the case of a veteran who has renounced his retirement from the military in order to receive disability compensation. In these situations the amount of pension apportioned to disability pay can be garnished to pay family support obligations.

In other circumstances it is possible for a veteran's benefits to be withdrawn to cover medical expenses or past-due federal student loans. In these cases the court can go directly to the VA for the information they need. A disabled veteran should seek out an experienced attorney to secure their disability benefits. This will stop them from relying on payday lenders or private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a big assistance to veterans and their families, but they don't come without their own set of issues. If a veteran is divorced and receives an VA settlement, he or she should know what this will do to the benefits they receive.

In this context one of the major issues is whether disability benefits are considered assets that can be divided in a divorce. This question has been resolved in two ways. A Colorado court of appeals decision decided that VA disability payments were not property and could not be divided this way. The other way is by the U.S. Supreme Court ruling in Howell which ruled that garnishing the veteran's VA disability payments to pay the payment of alimony is in violation of the Uniformed Services Former Spouses Protection Act (USFSPA).

Another concern with this topic is how the disability benefits are treated for purposes of child support and maintenance. Both the USFSPA and the Supreme Court, prohibit states from counting disability benefits as income. However, some states have taken different approaches. For instance, Colorado adds up all sources of income to determine how much in support a spouse needs and then adds up the disability payments to take account that they are tax-free.

It is also essential to know how divorce can affect their disability compensation and how their spouses who divorced could slash their benefits. If they are aware of these issues, veterans can safeguard their compensation and avoid unintended consequences.