How a Veterans Disability Settlement Can Affect a Divorce Case
Jim’s 58 year old client is permanently disabled because of his time in the military. He receives a monthly Pension benefit from the Department of veterans disability compensation Affairs.
He would like to know if a jury verdict will affect his VA benefits. The answer is not. It will, however, affect his other income sources.
Can I receive compensation in the event of an accident?
You may be eligible for a settlement if you were in the military but are now permanently disabled as a result of injuries or illnesses. This settlement will help pay you for medical expenses, lost income and other expenses resulting from your illness or injury. The kind of settlement you’ll be able to get depends on whether or not your health condition is non-service connected, the VA benefits you are eligible for, and the amount your accident or injury will cost to treat.
Jim, a 58-year veteran of the Vietnam war was diagnosed with permanent disabilities because of his two years of service. He doesn’t have enough work space to qualify for Social Security Disability benefits, but he has the VA Pension, which provides free medical care and cash depending on the financial needs of his. He wants to learn what the implications of a personal injury settlement will affect his eligibility to receive this benefit.
The answer is dependent on whether the settlement is in the form of either a lump sum or structured settlement. Structured settlements are based on payments over time, veterans disability lawyers rather than one payment. The amount paid by the defendant is calculated to offset existing VA benefits. A lump sum payment can impact any existing VA benefits as the VA will annually calculate and consider it to be income. In either case, if excess assets remain after the twelve month period when the settlement is annualized Jim may be eligible to apply again for the Pension benefit but only if his assets are lower than a threshold with which the VA determines to be a financial need.
Do I really need to hire an attorney?
Many spouses, members of the military, and former spouses have concerns about VA disability payments and their impact on financial issues during a divorce. In addition, some people think that the Department of Veterans Affairs’ compensation payments can be divided like a military pension in divorce or are «off limits» in the calculation of child support and alimony. These misconceptions can lead to financial errors that have serious repercussions.
It is possible to submit a claim for disability benefits on your own However, most disabled veterans disability attorney will benefit from the assistance of a qualified lawyer. A veteran’s disability lawyer who is experienced will review your medical documents and gather the required evidence needed to build a strong argument to the VA. The lawyer can also help to submit any appeals you require to obtain the benefits you’re entitled to.
The majority of VA disability lawyers do not charge for consultations. The government also pays the lawyer directly from the award of retroactive benefits. This is an advantage of the Equal Access to Justice Act. Your fee agreement should clearly define the percentage of retroactive benefits to be paid to your lawyer. For instance, a fee agreement can specify that the government will pay the lawyer up to 20% of retroactive benefits or pay. Any additional amounts are your to pay.
Can I Garnish My VA Benefits?
When a disabled veteran receives compensation from the VA it is in the form of monthly payments. These payments are designed to alleviate some of the effects of disabilities, diseases or injuries that are sustained or aggravated by the veteran’s military service. The benefits for veterans disability law‘ disability are subject to garnishment, like any other income.
Garnishment can be a legal proceeding that allows a judge to order an employer or government agency to take money from the pay of someone who owes money and send them directly to a creditor. In the event of divorce, garnishment may be used to pay spousal maintenance or child support.
There are a few situations where disability benefits can be garnished. Most often, it is the case of a veteran who has waived his retirement from the military in order to receive disability compensation. In these instances, the portion of pension that is devoted to disability benefits can be garnished to cover the obligations of family support.
In other situations, veteran’s benefits can also be garnished to pay medical bills or federal student loans that are over due. In these instances the court might be able to direct the case to the VA to obtain the necessary information. A disabled veteran should seek out 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 can be a major help for veterans disability lawyers (knowing it) and their families, however they come with their own set of issues. For instance the case where a veteran is divorced and receives a VA disability settlement, they should know how this will affect their benefits.
A major issue in this context is whether or not the disability payments count as divisible assets in divorce. This question has been resolved in two ways. One way is by a Colorado court of appeals decision which concluded that VA disability payments are not property, and therefore cannot be divided in that way. The U.S. Supreme Court ruled in Howell, that garnishing a veteran’s VA disability benefits for alimony was a violation of USFSPA.
Another concern related to this topic is how the disability benefits are treated in the context of child support and maintenance. Both the USFSPA and the Supreme Court, prohibit states from counting disability benefits as income. Certain states employ different methods. Colorado is one example. It takes all income sources together to determine the amount required to provide for a spouse. Colorado then adds on disability payments to account for their tax-free status.
It is also essential that veterans disability lawyer know how divorce can affect their disability benefits and how their ex spouses can garnish their compensation. If they are aware of these questions, veterans can guard their income and avoid unintended consequences.