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How a Veterans Disability Settlement Can Affect a Divorce Case

Jim's 58 year old client is permanently disabled as a result of his service in the military. He is able to receive a monthly pension from the Department of Veterans Affairs.

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

Can I get compensation for an Accident?

If you've served in the military but are now permanently disabled as a result of injuries or illnesses, you could be eligible for a veteran disability settlement. This settlement can help you receive compensation for your medical expenses, lost wages, and other expenses that result from your illness or injury. The type of settlement you'll be able to receive depends on whether your condition is service-connected or non-service connected, the VA benefits you qualify for, as well as the amount your injury or accident will cost to treat.

Jim who is a 58-year veteran of the Vietnam war, was diagnosed as having permanent disabilities due to his two years of service. He hasn't got enough work space to qualify for Social Security disability benefits but He does have a VA Pension benefit that provides cash and free medical assistance dependent on financial need. He wants to know if a personal injury settlement would affect his ability be eligible for this benefit.

The answer is dependent on whether the settlement is in the form of an unintentional lump sum or a structured settlement. Structured settlements require the payment of over time, rather than a single payment. The amount paid by the defendant is calculated to offset existing VA benefits. A lump sum payout is likely to impact any benefits already in place because the VA considers it a tax-deductible income and will annually increase it. In the event that there are any excess assets are left after the 12 month period when the settlement has been annualized Jim could apply again for the Pension benefit but only if his assets are lower than a threshold with which the VA accepts as establishing financial need.

Do I need to employ an attorney?

Many spouses, military personnel, and former spouses are concerned about VA disability payments and their impact on money issues during divorce. Among other things, some people think that the Department of Veterans Affairs' compensation payments are able to be divided like a pension from a military service in divorce or are "off limits" in calculation of child support and Alimony. These misconceptions can lead to serious financial errors.

While it is possible to submit an initial claim for disability benefits on your own, the majority of disabled veterans benefit from the assistance of an experienced lawyer. A disability attorney for veterans disability lawsuits can look over your medical records and collect the evidence necessary to argue your case to the VA. The lawyer can also file any appeals you may require to receive the benefits you are entitled to.

Most VA disability lawyers don't charge for consultations. In addition the lawyer will typically be paid by the government directly out of the retroactive past-due benefits. This is an advantage of the Equal Access to Justice Act. The percentage of retroactive past-due benefits that your lawyer will receive must be specified in your fee agreement. A fee agreement could state for instance that the government would pay the attorney up 20 percent of retroactive benefits. Any additional amounts will be your to pay.

Can I Garnish My VA Benefits?

The VA pays a monthly amount of compensation to disabled veterans. The funds are meant to alleviate the effects of diseases, injuries or disabilities that have been sustained or aggravated during the course of a veteran's time of service. Like all incomes, veterans disability benefits can be subject to garnishment.

Garnishment permits a court order that an employer or government agency deduct money from the pay of a person who owes a debt and send it directly to the creditor. In the event of a divorce the garnishment could be used for child or spousal support.

However, there are certain situations where disability benefits could be refunded. Most often, it is the case of a veteran who has renounced his retirement from the military in order to receive disability compensation. In these situations the amount of pension that is devoted to disability payments can be garnished in order to pay for family support obligations.

In other situations, veteran's benefits may also be garnished in order to pay medical bills or federal student loans that are past due. In these instances a judge can refer a case directly to the VA to obtain the information they need. It is vital for disabled veterans to find a competent attorney to ensure that their disability benefits are not taken away. This can help them avoid having to depend on payday and private loan lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a major help for veterans and their families, however they come with their own set of issues. For example in the event that a veteran gets divorced and receives an VA disability settlement, they need to know what effect this will have on the benefits they receive.

In this case, a major question is whether or not disability payments are considered assets that can be split in a divorce. The question has been answered in two ways. One option is a Colorado court of appeals decision that found that VA disability payments are not property, and therefore cannot be divided in this way. Another option is a U.S. Supreme Court ruling in Howell that held that garnishing a 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 topic is how the disability benefits are treated in the context of child support and maintenance. Both the USFSPA as well as the Supreme Court, prohibit states from counting disability benefits as income. However, certain states have adopted the opposite approach. For instance, Colorado adds up all sources of income to determine how much in support a spouse needs and then adds disability benefits to take into account that they are tax free.

It is also essential that veterans disability attorney know how divorce will affect their disability compensation and how ex-spouses can garnish their compensation. By being informed about these issues, vets can protect their compensation as well as avoid unintended consequences.