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 is able to receive a monthly pension from the Department of Veterans Affairs.
He wants to find out if a verdict from a jury will affect his VA benefits. It won't. However, it will affect his other income sources.
Can I Receive Compensation for an Accident?
If you have served in the military, and are permanently disabled due to injuries or illnesses, you may be eligible for a veterans disability settlement. This settlement can help compensate you for medical bills, lost income and other costs that resulted from your illness or injury. The kind of settlement you'll be able to get will depend on whether the condition is service-connected or not connected, what VA benefits you are eligible for, and how much your injury or accident will cost to treat.
Jim, a 58-year old Vietnam veteran was diagnosed with permanent disabilities due to his two years of service. He doesn't have enough work space to be eligible for Social Security Disability benefits, however, he can claim the VA Pension which offers cash and medical treatment for free according to his financial need. He would like to know if a personal injury settlement will affect his ability to get this benefit.
The answer is contingent upon whether the settlement is in the form of one lump sum or a structured settlement. Structured settlements are based on payments over a period of time rather than one single payment. The amount that defendant pays is calculated to offset existing VA benefits. A lump sum payment can affect any existing VA benefits since the VA will annually evaluate and consider it as income. If Jim has excess assets after the settlement is annually adjusted and he wants to reapply, he will be eligible for the pension benefit. However, his assets must be below a threshold the VA has agreed establishes financial necessity.
Do I need to hire an attorney?
Many spouses, service members and former spouses are confused about VA disability compensation and its impact on the financial aspects of a divorce case. Some people think that the Department of Veterans Affairs' compensation payments can be split as a military pension 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.
While it is possible to submit an initial claim for disability benefits by yourself, the majority of disabled veterans can benefit from the assistance of a professional lawyer. A veteran's disability lawyer can examine your medical records to gather the evidence required to argue your argument before the VA. The lawyer can also file any appeals that you might need to get the benefits you deserve.
Most VA disability lawyers do not 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 percentage of retroactive past-due benefits that your lawyer will be paid should be outlined in your fee agreement. For instance, a fee agreement can provide that the government can pay the attorney up to 20% of retroactive benefits or give. The attorney is responsible for any additional sums.
Can I Garnish My VA Benefits?
The VA provides monthly compensation to disabled veterans. These payments are designed to help offset the impact of injuries, illnesses or disabilities sustained or aggravated by a veteran's time of service. Like all income, the
veterans disability law firms disability benefits can be subject to garnishment.
Garnishment lets a court order that an employer or a government agency withhold cash from the pay of a person who is in the process of paying an amount and then pay it directly to the creditor. In the event of a divorce garnishment can be used to pay child or spousal care.
However, there are certain circumstances where a veteran's disability benefits are able to be repaid. Most common is the veteran who has waived his military retirement to receive disability compensation. In these situations the portion of the pension allocated to disability payments could be garnished to meet family support obligations.
In other circumstances the benefits of a veteran can be garnished to pay for medical expenses or past-due federal student loans. In these instances, a court may be able to directly to the VA to get the required information. It is vital for disabled veterans to work with a reputable lawyer to ensure that their disability benefits are not garnished. This can stop them from relying on payday lenders or private loans.
Can I Represent Myself in a Divorce Case?
VA disability settlements are a tremendous help to veterans as well as their families. However they also come with specific complications. If a person divorces and receives a VA settlement, he or she should be aware of the implications to their benefits.
One of the major issues in this context is whether or not disability payments count as divisible assets in 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 way. The U.S. Supreme Court ruled in Howell that garnishing a veteran's VA disability payments for alimony was a violation of USFSPA.
Another issue related to this issue is how disability benefits are interpreted in the context of child support and maintenance. The USFSPA and the Supreme Court both forbid states from counting disability payments as income for these purposes. Certain states use an alternative approach. For instance, Colorado adds up all sources of income to determine the amount in support a spouse is entitled to and then adds the disability benefits to take into the fact that they are tax-free.
Finally, it is important for veterans to know how their disability benefits will be affected if they get divorced and how their spouses who divorced them can affect their compensation. By being informed about these issues, veterans can safeguard their benefits as well as avoid any unintended consequences.