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 from the Department of Veterans Affairs.
He wants to be aware of whether a verdict by a jury will affect his VA benefits. It won't. It will, however, have an impact on the other sources of income he earns.
Can I receive compensation for an accident?
You could be eligible to receive a settlement if you were in the military but are now permanently disabled as a result of injuries or illnesses. This settlement can help you receive compensation for your medical bills, lost wages and other expenses that result from your injury or illness. The kind of settlement you'll be able to get will depend on whether the health condition is non-service connected, what VA benefits you are eligible for, as well as the amount your accident or injury will cost to treat.
For instance, Jim is a 58-year veteran who was diagnosed with permanent disabilities from two years of service in the Vietnam War. He hasn't got enough work space to qualify for Social Security disability benefits but He does have a VA Pension benefit that offers medical care and cash based on financial need. He wants to be aware of what the implications of a personal injury settlement will affect his ability to get this benefit.
The answer depends on if the settlement is a lump sum or a structured one. Structured settlements require payments over time, rather than one single payment. The amount paid by the defendant is calculated to offset existing VA benefits. A lump sum settlement can impact any existing VA benefits since the VA will annualize and consider it as income. In either case, if excess assets are left after the twelve-month period when the settlement is annualized, 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 need to employ an attorney?
Many spouses, military personnel and former spouses have questions about VA disability benefits and their impact on money issues during divorce. Some people believe, among other things, that the Department of Veterans Affairs compensation payments are split like the 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 by yourself however, the majority of disabled veterans will benefit from the assistance of a professional lawyer. A veteran's disability attorney can examine your medical records to gather the evidence needed to argue your argument before the VA. The lawyer can also file any appeals that you may require to get the benefits you are entitled to.
Most VA disability lawyers do not charge for consultations. In addition, the lawyer will generally be paid by the government directly out of your retroactive past due benefits. This is one of the benefits of the Equal Access to Justice Act. The amount of retroactive past due benefits your lawyer will receive must be specified in your fee agreement. For example the fee agreement could specify that the government will pay the lawyer up to 20% of the retroactive benefits or provide. Any additional amount is your to pay.
Can I Garnish My VA Benefits?
The VA pays a monthly amount of compensation to disabled veterans. The payments are meant to help offset the effects of diseases, disabilities or injuries that are sustained or aggravated by a veteran's military service. Like all income, the veterans disability benefits can be subject to garnishment.
Garnishment allows a court order that an employer or government agency withhold money from the wages of an individual who owes the debt and pay it directly to the creditor. In the event of divorce, garnishment could be used to pay spousal or child support or child support.
However, there are a few circumstances where a veteran's disability benefits can be garnished. The most common scenario is veterans who have waived their military retirement in order to claim disability compensation. In these situations the portion of the pension allocated to disability payments may be garnished for family support obligations.
In other cases the benefits of a veteran can be withdrawn to cover medical expenses or past due federal student loans. In these cases the court might be able to the VA to obtain the necessary information. The disabled veteran should consult an experienced attorney to protect their disability benefits. This will stop them from having to rely on payday lenders and private loans.
Can I Represent Myself in a Divorce Case?
VA disability settlements are an excellent assistance to veterans and their families. However, they come with specific complications. For instance the case where a veteran is divorced and receives a VA disability settlement, they need to know what this means for the benefits they receive.
In this case one of the major issues is whether disability benefits are considered assets that can be divided in divorce. This question has been resolved in a couple of ways. A Colorado court of appeals ruling declared that VA disability payments were not property and could not be divided in this way. The U.S. Supreme Court ruled in Howell, that garnishing a veteran’s VA disability payments for Alimony was against the USFSPA.
Another concern that is related to this issue is how disability benefits are treated in the context of child maintenance and support. Both the USFSPA, as well as the Supreme Court, prohibit states from claiming disability benefits as income. However, some states have chosen to take an alternative approach. Colorado is one example. It adds all income sources together to determine the amount required to support a spouse. The state then adds disability income to account for their tax-free status.
It is also important for
veterans disability law firms to be aware of how their disability benefits will be affected when they get divorced and how their ex-spouses may be able to garnish their compensation. By being informed about these issues, vets can safeguard their benefits as well as avoid unintended consequences.