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 Affairs.

He wants to know if a jury verdict will affect his VA benefits. The answer is that it will not. However, it will have an impact on his other sources of income.

Do I have the right to receive compensation in the event of an accident?

If you've served in the military and are permanently disabled due to injuries or illnesses, you may be eligible for a veterans disability settlement. This settlement could help you receive compensation for your medical expenses, lost wages, and other expenses resulting from your injury or illness. The type of settlement that you can receive will depend on whether your illness or injury is related to service, what VA benefits you qualify for, and the amount you will need to treat your accident or injury.

Jim who is a 58-year veteran of Vietnam, was diagnosed as having permanent disabilities because of his two years of service. He does not have enough work space to be eligible for Social Security disability benefits but He does have a VA Pension benefit, which offers medical care and cash in accordance with financial need. He would like to know how a personal injury settlement will affect his eligibility to receive this benefit.

The answer will depend on whether the settlement is in the form of an unintentional lump sum or a structured settlement. Structured settlements are payments made over a time period instead of in one payment, and the amount paid by the defendant is used to offset any existing VA benefits. However, a lump sum payment will likely affect any existing benefits because the VA considers it a tax-deductible income and will annually increase it. If Jim has excess assets after the settlement is annually adjusted, he can reapply to be eligible for the pension benefit. However the assets he has to be below a threshold the VA has agreed establishes financial necessity.

Do I need to hire an Attorney?

Many service members, spouses and former spouses are confused about VA disability compensation and its impact on money issues in a divorce case. Among other things, some people believe that the Department of Veterans Affairs' compensation payments can be split like 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 which can have serious consequences.

While it is possible to submit an initial claim for disability benefits on your own, many disabled veterans benefit from the help of a qualified attorney. An experienced veteran's disability lawyer will review your medical records and gather all the necessary evidence needed to build a strong case at the VA. The lawyer will also be able to file any appeals that you need to get the benefits you're entitled to.

Furthermore, the majority of VA disability lawyers charge no fees for consultations. Additionally the lawyer will usually 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 that your lawyer will receive must be specified in your fee agreement. For instance, a fee agreement can state that the government will pay the attorney up to 20% of retroactive benefits or award. You are responsible for any additional costs.

Can I Garnish My VA Benefits?

The VA offers monthly payments to disabled veterans. These payments are designed to offset some of the effects of disability, illness or injuries sustained or aggravated by a veteran's military service. Like all income, the veterans disability lawsuits disability benefits can be subject to garnishment.

Garnishment is a court-ordered procedure that an employer or a government agency withhold cash from the pay of a person who is in the process of paying a debt and send it directly to a creditor. In the event of a divorce garnishment may be used to pay child or spousal support.

However, there are certain circumstances where a veteran's disability benefits could be repaid. The most common scenario is those who have renounced their military retirement in order to claim disability compensation. In these instances the portion of the pension apportioned to disability pay can be garnished to pay family support obligations.

In other cases veterans' benefits could be withdrawn to cover medical expenses or past-due federal student loans. In these instances the court could go directly to the VA to obtain the information they need. It is vital for disabled veterans to find a competent lawyer to ensure that their disability benefits aren't garnished. This will stop them from relying on payday lenders or private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a huge aid to veterans and their families, but they do come with their own set-of complications. For instance the case where a veteran is divorced and receives a VA disability settlement, they should be aware of how this will affect their benefits.

One of the major issues in this regard is whether disability payments are considered divisible assets in divorce. The question has been answered in two ways. One method is the Colorado court of appeals ruling that concluded that VA disability payments are not property, and therefore cannot be divided in this way. Another option is an U.S. Supreme Court ruling in Howell that ruled that garnishing the veteran's VA disability payments to pay for alimony is a violation of the Uniformed Services Former Spouses Protection Act (USFSPA).

Another concern with this subject is how disability benefits are interpreted for purposes of child support and maintenance. The USFSPA and the Supreme Court both forbid states from counting disability payments as income to be used for this purpose. However, some states have chosen to take different approaches. For instance, Colorado adds up all sources of income to determine the amount in support a spouse is entitled to and then adds disability payments to take into account that they are tax-free.

It is also important that veterans understand how their disability compensation will be affected if they become divorced and how their ex-spouses may garnish their compensation. If they are aware of these issues, veterans can protect their earnings and avoid any unintended consequences.