How a Veterans Disability Settlement Can Affect a Divorce Case
Jim's 58 year old client is permanently disabled due to his time in the military. He receives a monthly Pension benefit from the Department of Veterans Affairs.
He wants to be aware of whether a verdict by a jury will impact his VA benefits. The answer is that it will not. However, it will have an impact on his other sources of income.
Can I get compensation for an accident?
If you've served in the military and are now permanently disabled because of injuries or illnesses, you may be eligible for a veteran disability settlement. This settlement can help compensate you for medical bills, lost income, and other costs that resulted from your injury or sickness. The type of settlement you'll get will depend on whether the health condition is non-service connected, the VA benefits you are eligible for, as well as the amount your injury or accident will cost to treat.
For instance, Jim is a 58-year veteran who was diagnosed with permanent disabilities after two years of service during the Vietnam War. Jim does not have enough space for work to be eligible for Social Security Disability benefits, however, he can claim an VA Pension that offers cash and medical care for free based on his financial need. He would like to determine if a personal accident settlement will affect his ability to be eligible for this benefit.
The answer is dependent on whether the settlement is a lump sum or a structured one. Structured settlements are payments made over a time frame rather than in a single payment and the amount received by the defendant is used to offset any existing VA benefits. A lump sum payout will likely alter any existing benefits as the VA considers it a tax-deductible income and will annually increase it. In any case, if there are excess assets are left over after the twelve month period after the settlement is annually recalculated, Jim could apply again for the 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, members of the military, and former spouses are concerned about VA disability benefits and their effect on financial issues during divorce. Some people believe, among other things, that the Department of Veterans Affairs compensation payments can be split like military retirements in a divorce case or that they're "off limits" when calculating child support and Alimony. These misconceptions can lead to financial mistakes that have serious repercussions.
It is possible to submit an application for
vimeo disability benefits by yourself However, most disabled veterans would require the help of a skilled lawyer. A skilled veteran's disability lawyer will examine your medical records and gather all the necessary evidence needed to build a strong case at the VA. The lawyer can also file any appeals you might require to get the benefits you are entitled to.
Most VA disability lawyers do not charge for consultations. In addition that the lawyer will normally be paid by the government directly from your award of retroactive past-due benefits. This is one of the benefits of the Equal Access to Justice Act. The fee agreement should specify clearly the amount of retroactive benefits that will be paid to your lawyer. For example the fee agreement could provide that the government can pay the lawyer up to 20% of the retroactive benefits or pay. Any additional amount is your responsibility.
Can I Garnish My VA Benefits?
The VA offers monthly payments to disabled veterans. These payments are designed to help offset the consequences of illnesses, disabilities or injuries incurred during or aggravated by a veteran's military service. The benefits for
huntsville veterans disability law firm' disability are subject to garnishment as is any other income.
Garnishment is a court-ordered procedure that an employer or a government agency withhold funds from the paycheck of a person who owes a debt and send it directly to a creditor. In the event of a divorce the garnishment could be used for child or spousal support.
However, there are a few circumstances where a veteran's disability benefits are able to be garnished. The most frequent scenario involves a veteran who waived their military retirement to get disability compensation. In these cases the amount of pension that is allocated to disability pay can also be garnished to meet family support obligations.
In other cases the benefits of a veteran can be garnished to pay for medical expenses or past due federal student loans. In these cases the court might be able to go straight to the VA to get the required information. A disabled veteran should employ an experienced attorney to secure their disability benefits. This can prevent 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 help to
hailey veterans disability attorney as well as their families. However, they come with their own set of complications. If a veteran gets divorced and receives a VA settlement it is important to be aware of the implications to their benefits.
One of the major issues in this regard is whether or not the disability payments count as divisible assets in divorce. The issue has been resolved in a variety of ways. A Colorado court of appeals decision decided that VA disability payments were not property and therefore could not be divided this way. The U.S. Supreme Court ruled in Howell that garnishing a veteran’s VA disability benefits for an alimony payment was a violation of USFSPA.
Another issue that is related to this subject is the treatment of disability benefits to children for support and maintenance. Both the USFSPA, as well as the Supreme Court, prohibit states from counting disability benefits as income. However, some states have chosen to take a different approach. For instance, Colorado adds up all sources of income to determine the amount in support a spouse will need and then adds the disability payments to take into account that they are tax free.
It is also important for veterans to be aware of how their disability compensation will be affected if they are divorced and how their ex-spouses may take advantage of their benefits. By being aware of these issues, veterans can protect their income as well as avoid unintended consequences.