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 benefit from the Department of veterans disability attorney Affairs.

He wants to be aware of whether a verdict by a jury will affect his VA benefits. It won't. It will, however, affect the income sources of his other income sources.

Do I have the right to receive compensation in the event of an accident?

You could be eligible for a settlement if you were in the military but are now permanently disabled because of injuries or illnesses. This settlement will help pay you for medical expenses, lost income and other costs that resulted from your injury or sickness. The type of settlement that you can receive will depend on whether your injury or illness is service-connected, what VA benefits you qualify for, and the amount you will need to treat your accident or injury.

Jim, a 58 year old Vietnam veteran was diagnosed with permanent disabilities as a result of his two years of service. He does not have enough space for work to be eligible for Social Security Disability benefits, but he has an VA Pension that offers cash and medical care for free according to his financial need. He would like to know how a personal injury lawsuit could affect his eligibility to benefit from this benefit.

The answer is contingent upon whether the settlement is in the form of a lump sum or a structured settlement. Structured settlements are based on payments over a period of time instead of one payment. The amount paid by the defendant is calculated to offset the existing VA benefits. A lump sum payment will affect any existing VA benefits as the VA will annually assess and count it as income. In any case, if there are excess assets remain after the period of twelve months when the settlement is annualized Jim could reapply for the Pension benefit but only if his assets are below a certain threshold that the VA agrees establishes financial need.

Do I need to employ an attorney?

Many spouses, military personnel and former spouses have concerns about VA disability payments and their effect on financial issues in divorce. Some people believe, for instance, that Department of Veterans Affairs compensation payments can be split as military retirements in divorce cases, or that they're "off limits" when calculating child support and Alimony. These misconceptions may lead to grave financial errors.

While it is possible to do an initial claim for disability benefits on your own, the majority of disabled veterans require the assistance of a professional attorney. A disability attorney for veterans disability law firms can review your medical records to collect the evidence necessary to present a convincing case before the VA. The lawyer can also file any appeals that you may require to get the benefits you deserve.

Most VA disability lawyers don't charge for consultations. In addition the lawyer will typically be paid by the government directly from your award of retroactive past-due benefits. This is a benefit of the Equal Access to Justice Act. The amount of retroactive past due benefits your lawyer will be paid must be specified in your fee agreement. A fee agreement could stipulate that, for example, the government will give the attorney up to 20 percent of retroactive benefits. You will be accountable for any additional costs.

Can I Garnish My VA Benefits?

If a disabled veteran receives compensation from the VA it is received in the form of monthly payments. The funds are intended to compensate for some of the effects of diseases, disabilities or injuries that are sustained or aggravated by a veteran's military service. The veterans disability benefits are subject to garnishment like any other income.

Garnishment allows a court order that an employer or government agency stop money from the wages of a person who owes an obligation and pay it directly to the creditor. In the event of a divorce the garnishment could be used for child or spousal care.

There are some situations where a veteran's benefits can be garnished. The most common scenario involves those who have renounced their military retirement to get disability compensation. In these scenarios the pension portion that is allocated to disability compensation can be garnished in order to cover the obligations of family support.

In other circumstances it is possible for a veteran's benefits to be garnished to pay for medical expenses or past due federal student loans. In these instances the court may be able to direct the case to the VA to get the required information. It is essential for disabled veterans to hire a knowledgeable lawyer to ensure that their disability benefits are not garnished. This can stop them from having to rely on payday lenders and private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a huge aid to veterans and their families, however they come with their own set of complications. If a veteran gets divorced and receives a VA settlement and is eligible, they should know what this will do to the benefits they receive.

In this regard, a major question is whether or not disability benefits are considered assets that could be divided during a divorce. This question has been resolved in two ways. A Colorado court of appeals ruling found that VA disability payments were not property and could not be divided this manner. The U.S. Supreme Court ruled in Howell, that garnishing a veteran’s VA disability payments for an alimony payment was a violation of USFSPA.

Another concern related to this issue is the handling of disability benefits for child support and maintenance. The USFSPA and the Supreme Court both forbid states from counting disability benefits as income for these purposes. Certain states use a different approach. For instance, Colorado adds up all sources of income to determine the amount in support a spouse requires and then adds disability payments to take account that they are tax-free.

It is also important that veterans know the impact divorce has on their disability benefits and how their spouses who divorced could take advantage of their compensation. By being aware of these issues, vets can safeguard their benefits as well as avoid any unintended consequences.