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How a Veterans Disability Settlement Can Affect a Divorce Case

Jim’s 58-year-old client is permanently disabled due to his military service. He receives a monthly Pension benefit from the Department of Veterans Affairs.

He would like to know how the jury’s verdict will impact his VA benefits. The answer is that it will not. But it will have some impact on his other sources of income.

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

If you have served in the military, and are permanently disabled because of injuries or illnesses, you may be eligible for a veterans disability settlement. This settlement can allow you to receive compensation for your medical bills, lost wages and other expenses resulting from your injury or illness. The kind of settlement you can receive depends on whether your condition is service-connected or non-service connected, which VA benefits you qualify for, as well as the amount your accident or injury will cost to treat.

Jim who is a 58-year veteran of Vietnam was diagnosed with permanent disabilities because of his two years of service. He hasn’t got enough work space to be eligible for Social Security disability benefits but the VA Pension benefit that provides cash and free medical care based on financial need. He wants to determine if a personal accident settlement could affect his ability to receive this benefit.

The answer will depend on whether the settlement is in the form of a lump sum or a structured settlement. Structured settlements are settlements that are paid over a time frame rather than as a single payment and the amount paid by the defendant is calculated to offset any existing VA benefits. In contrast, a lump sum payout will likely impact any benefits already in place because the VA considers it as income and will increase it. In the event that there are any excess assets are left over after the period of twelve months after the settlement is annually recalculated, Jim could be eligible for a new Pension benefit but only if his assets are less than a minimum threshold that the VA is able to agree establishes financial need.

Do I have to hire an attorney?

Many spouses, military personnel, and former spouses are confused about VA disability compensation and the impact it has on the financial aspects of a divorce case. There are many other reasons, but some people think that the Department of Veterans Affairs’ compensation payments can be split like a pension from a military service in a divorce or that they are “off limits” when it comes to calculation of child support and alimony. These misconceptions could lead to financial mistakes that have serious repercussions.

It is possible to file an application for disability benefits by yourself, but most disabled veterans will require the help of a professional lawyer. A veteran’s disability attorney can examine your medical records to collect the evidence necessary to make a strong case to the VA. The lawyer can also help to submit any appeals you require to secure the benefits you’re entitled.

Most VA disability lawyers don’t charge for consultations. The government also pays the lawyer directly from your amount 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. For instance the fee agreement could provide that the government can pay the lawyer up to 20% of retroactive benefits or provide. Any additional amounts are your obligation.

Can I Garnish My VA Benefits?

If a disabled veteran is granted compensation from the VA the compensation is paid in the form of monthly payments. These payments are designed to help offset the effects of diseases, disabilities or injuries that are sustained or aggravated by a veteran’s military service. The las cruces veterans disability lawsuit disability benefits are subject to garnishment, just like other incomes.

Garnishment can be a legal proceeding that permits a court to make an order to an employer or government agency to deduct funds from the pay of an employee who owes money and transfer them directly to the creditor. In the event of a divorce garnishment can be used to pay child or spousal support.

There are situations where the benefits of a veteran could be repaid. The most frequent is the veteran who has renounced his military retirement in order to receive disability compensation. In these situations, the portion of the pension that is attributed to disability benefits may be garnished for family support obligations.

In other situations, veteran’s benefits can also be garnished to pay for medical expenses or Vimeo federal student loans that are over due. In these instances a judge can refer a case directly to the VA for the information they require. The disabled veteran should consult an experienced lawyer to protect their disability benefits. This can stop them from having to rely on payday lenders or private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements are a great assistance to veterans and their families. However, they come with specific complications. For example the case where a veteran is divorced and is awarded an VA disability settlement, they should know how this will affect the benefits they receive.

In this context, the main question is whether or not disability payments are considered to be assets that can be split during a divorce. This question has been addressed in two ways. One method is the Colorado court of appeals decision, which found that VA disability payments are not property, and therefore cannot be divided in this way. Another method is a U.S. Supreme Court ruling in Howell which ruled that garnishing the veteran’s VA disability benefits to pay Alimony is against the Uniformed Services Former Spouses Protection Act (USFSPA).

Another concern related to this issue is the treatment of disability benefits for child support and maintenance. Both the USFSPA and the Supreme Court, prohibit states from counting disability benefits as income. Some states have an alternative approach. For instance, Colorado adds up all sources of income to determine how much in support a spouse needs and then adds up the disability benefits to take into account that they are tax-free.

In the end, it is crucial for veterans to understand how their disability benefits will be affected when they get divorced and how their ex-spouses may take advantage of their benefits. If they are aware of these issues, veterans can safeguard their earnings and avoid any unwanted consequences.