How a Veterans Disability Settlement Can Affect a Divorce Case
Jim’s 58-year-old client is permanently disabled as a result of his military service. He receives a monthly pension from the Department of Veterans Affairs.
He wants to know how the verdict of a jury will affect his VA benefits. It won’t. However, it will have an impact on his other income sources.
Can I Get Compensation for an accident?
If you have served in the military, and are permanently disabled as a result of injuries or illnesses, you could be eligible for a veterans disability settlement. This settlement will allow you to get compensation for medical bills, lost wages, and other expenses resulting from your injury or illness. The type of settlement you will receive will depend on whether or not your illness or injury is service-connected, what VA benefits you qualify for, and the amount you will need to treat your accident or injury.
Jim is a 58 year veteran of the Vietnam war was diagnosed with permanent disabilities because of his two years of service. He does not have enough working space to qualify for Social Security disability benefits but he does have a VA Pension benefit which provides medical care and cash based on financial need. He wants to determine if a personal accident settlement will affect his ability to receive this benefit.
The answer is contingent upon whether the settlement is in the form of either a lump sum or structured settlement. Structured settlements involve the payment of over time rather than one single payment. The amount paid by defendant is calculated to offset the existing VA benefits. A lump sum payment will likely impact any benefits already in place because the VA considers it as income and will increase it. In any event, if extra assets are left over after the twelve-month period when the settlement is annualized Jim could reapply for the pension benefit, but only if his assets are below a certain threshold that the VA is able to agree establishes financial need.
Do I need to employ an attorney?
Many spouses, service members, and former spouses are concerned about VA disability benefits and their effect on financial issues in divorce. Some people believe, among other things that the Department of Veterans Affairs compensation payments are split like military retirements in divorce cases, or that they’re «off limits» when calculating child support and Alimony. These misconceptions could lead to financial mistakes that have serious repercussions.
While it is possible to make an initial claim for disability benefits on your own, many disabled veterans get the assistance of a professional lawyer. A skilled veteran’s disability lawyer can examine your medical documents and gather the required evidence to support your case at the VA. The lawyer can also file any appeals you may need in order to receive the benefits you are entitled to.
Moreover, most VA disability lawyers charge no fees for consultations. The government also pays the lawyer directly from your benefit of retroactive 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 to be paid to your lawyer. For instance, a fee agreement can provide that the government can 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?
When disabled veterans disability legal receive compensation from the VA it is in the form of monthly payments. The purpose of the payments is to compensate for the effects of injuries, illnesses or disabilities that have been sustained or worsened during the veteran’s time of service. The benefits for veterans disability compensation‘ disability are subject to garnishment just like any other income.
Garnishment allows a court order that an employer or a government agency withhold money from the pay of an individual who owes a debt and send it directly to the creditor. In the case of divorce, garnishment could be used to pay spousal or child support or child support.
However, there are certain situations where disability benefits may be repaid. The most common situation involves those who have renounced their military retirement in order to receive disability compensation. In these scenarios the pension portion that is allocated to disability compensation can be garnished in order to fulfill the family support obligations.
In other cases veterans disability lawsuit (Forums.shopbotix.com)’ benefits could be seized to pay medical expenses or Veterans Disability Lawsuit past-due federal student loans. In these cases the court could go directly to the VA for the information they require. The disabled veteran should consult an experienced lawyer to protect their disability benefits. This will help them avoid being forced to rely on private loans and payday lenders.
Can I Represent Myself in a Divorce Case?
VA disability settlements can be a huge assistance to veterans disability claim and their families, but they don’t come without their own set of issues. If a veteran gets divorced and receives an VA settlement and is eligible, they should be aware of the impact this could have to the benefits they receive.
One of the major issues in this context is whether or not the disability benefits are considered divisible assets in a divorce. This issue has been addressed in a variety of ways. A Colorado court of appeals ruling determined that VA disability payments were not property and veterans Disability lawsuit therefore could not be divided this manner. The U.S. Supreme Court ruled in Howell, that garnishing a veteran’s VA disability payments for alimony was a violation of USFSPA.
Another concern with this issue is the handling of disability benefits to children for support and maintenance. Both the USFSPA, and the Supreme Court, prohibit states from claiming disability benefits as income. Certain states take different approaches. Colorado for instance, adds all income sources together to determine the amount required to provide for a spouse. Colorado then adds disability payments in order to take into account their tax-free status.
Finally, it is important that veterans disability legal understand how their disability benefits will be affected if they get divorced and how their ex-spouses may garnish their compensation. By being aware of these issues, vets can protect their compensation and avoid unintended consequences.