How a Veterans Disability Settlement Can Affect a Divorce Case

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

He wants to know if a jury verdict will impact his VA benefits. It won't. It will, however, have an impact on his other sources of income.

Can I get compensation for an accident?

You could be eligible for a settlement if served in the military but are now permanently disabled because of injuries or illnesses. This settlement can help you get compensation for medical bills, lost wages and other costs resulting from your illness or injury. The kind of settlement you'll be able to receive depends on whether your medical condition is service-connected, or not connected, the VA benefits you are eligible for, and the amount your injury or accident will cost to treat.

Jim, a 58-year old Vietnam veteran, was diagnosed as having permanent disabilities as a result of his two years of service. He hasn't got enough work space to qualify for Social Security disability benefits but the VA Pension benefit that provides medical care and cash that is based on financial need. He wants to be aware of how a personal injury lawsuit will affect his ability to be eligible for this benefit.

The answer is contingent upon whether the settlement is in the form of an unintentional lump sum or lawsuit a structured settlement. Structured settlements involve installments over time rather than a single payment. The amount paid by the defendant is calculated to offset existing VA benefits. In contrast, a lump sum payment will likely alter any existing benefits as the VA considers it income and will annualize it. If Jim has extra assets after the settlement is annualized the applicant can apply again to be eligible for the pension benefit. However his assets must be below a threshold the VA has determined to be a financial necessity.

Do I Need to Hire an Attorney?

Many spouses, service members, and former spouses have concerns about VA disability payments and their impact on financial issues during a divorce. Some people think, for instance, that the Department of Veterans Affairs compensation payments are split like a military retirement in divorce cases, or that they're "off limits" when calculating child support and alimony. These misconceptions could lead to serious financial mistakes.

It is possible to file a claim for disability benefits yourself however, the majority of disabled veterans would require the help of a qualified lawyer. A veteran's disability lawyer can review your medical records to gather the evidence needed to argue your case in front of the VA. The lawyer can also help to make any appeals you require to receive the benefits you're entitled.

Most VA disability lawyers do not charge for consultations. The government also pays the lawyer directly from the award of retroactive benefits. This is a benefit of the Equal Access to Justice Act. The fee agreement should clearly state the amount of retroactive benefits to be paid to your lawyer. A fee agreement could state that, for example, the government will provide the attorney with 20 percent of retroactive benefits. The attorney is responsible for any additional amounts.

Can I Garnish My VA Benefits?

If a disabled veteran receives compensation from the VA it is in the form of monthly payments. These payments are designed to help offset the effects of diseases, disabilities or injuries sustained or aggravated due to a veteran's military service. The benefits for veterans with disabilities are subject to garnishment, just like any other income.

Garnishment lets a court order that an employer or government agency withhold funds from the paycheck of a person who owes an obligation and pay it directly to a creditor. In the case of a divorce, garnishment may be used to pay spousal support or child support.

There are certain situations where veterans' benefits could be garnished. The most common scenario involves those who have renounced their military retirement in order to receive disability compensation. In these situations, the portion of the pension that is attributed to disability benefits could be garnished to meet family support obligations.

In other situations the benefits of a veteran can be withdrawn to cover medical expenses or past due federal student loans. In these cases a court may be able to the VA to obtain the necessary information. A disabled veteran should hire an experienced attorney to safeguard their disability benefits. This will help them avoid being forced to rely on payday and private loan lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements are a tremendous aid to veterans and their families. However they have their own set complications. For instance the case where a veteran is divorced and is awarded a VA disability settlement, they need to know what effect this will have on their benefits.

In this context one of the major issues is whether or not disability payments are considered to be assets that can be divided during a divorce. The issue has been resolved in a couple of ways. One is through the Colorado court of appeals decision, which found that VA disability payments are not property and cannot be divided in that way. Another way is through the U.S. Supreme Court ruling in Howell which ruled 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 that is related to this issue is how disability benefits are treated to determine child support and maintenance. The USFSPA and the Supreme Court both forbid states from claiming disability benefits as income for these purposes. However, certain states have taken a different approach. Colorado for instance adds all sources of income together to determine the amount needed to support a spouse. It then adds disability income to account for their tax-free status.

It is also important to know how divorce can affect their disability benefits and how ex-spouses can slash their income. By being knowledgeable about these issues, brookfield veterans disability law firm can safeguard their benefits and avoid unwanted consequences.