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How a Veterans Disability Settlement Can Affect a Divorce Case

Jim's client, a 58 year old man is permanently disabled due to his military service. He receives a monthly Pension benefit from the Department of Veterans Affairs.

He wants to know how the jury's verdict will impact his VA benefits. The answer is not. It will, however, have an impact on his other income sources.

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

If you've been in the military and are now permanently disabled because of injuries or illnesses, you could be eligible for a veterans disability settlement. This settlement will allow you to receive compensation for your medical bills, lost wages and other expenses resulting from your illness or injury. The type of settlement that you will receive will depend on whether your injury or illness is service-related, 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 the Vietnam war was diagnosed with permanent disabilities because of his two years of service. Jim does not have enough space for work to qualify for Social Security Disability benefits, however, he is able to claim the VA Pension, which provides cash and medical care for free depending on the financial needs of his. He wants to determine if a personal accident settlement would affect his eligibility to get this benefit.

The answer depends on whether the settlement is in the form of either a lump sum or structured settlement. Structured settlements consist of payments over time, rather than one payment. The amount that defendant pays is calculated to offset the existing VA benefits. A lump sum payout will likely alter any existing benefits as the VA considers it as income and will increase it. In the event that there are any excess assets are left over after the period of twelve months when the settlement is annualized, Jim could apply again for the pension benefit, but only if his assets fall below a certain threshold that the VA accepts as establishing financial need.

Do I need to employ an attorney?

Many service members, spouses and former spouses are confused about VA disability compensation and its effect on money issues in divorce cases. Some people believe, among other things that the Department of Veterans Affairs compensation payments can be split as a military retirement in divorce cases, or that they're "off limits" in calculating child support and Alimony. These misconceptions can lead to grave financial errors.

While it is possible to file an initial claim for disability benefits by yourself, the majority of disabled veterans benefit from the assistance of a professional lawyer. An experienced veteran's disability lawyer can examine your medical documents and gather the necessary evidence to support your argument to the VA. The lawyer can also file any appeals you may require to get the benefits you are entitled to.

Most VA disability lawyers don't charge for consultations. Additionally, the lawyer will generally be paid by the government directly from your retroactive past due benefits. This is a benefit of the Equal Access to Justice Act. The percentage of retroactive past-due benefits that your lawyer will be paid should be clearly outlined in your fee agreement. A fee agreement could state for instance that the government would give the attorney up to 20 percent of retroactive benefits. You are responsible for any additional sums.

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 injuries, illnesses or disabilities that were sustained or aggravated by a veteran's service. Like other income sources, veterans disability benefits can be subject to garnishment.

Garnishment is a court-ordered procedure that an employer or government agency deduct cash from the pay of a person who is in the process of paying an obligation and pay it directly to the creditor. In the case of divorce, garnishment can be used to pay spousal support or child support.

However, there are certain situations where disability benefits can be garnished. Most common is the veteran who renounced his military retirement to receive disability compensation. In these situations the part of pension that is devoted to disability pay can also be garnished to meet family support obligations.

In other instances veterans' benefits could be seized to pay medical expenses or past due federal student loans. In these situations the court could go directly to the VA for the information they need. The disabled veteran should consult an experienced lawyer to protect their disability benefits. This will allow them to avoid being forced to rely on payday loans or private loans. lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements are a tremendous help to veterans and their families. However they do come with their own set complications. If a veteran gets divorced and receives an VA settlement, he or she should be aware of what this might do to their benefits.

One of the major issues in this regard is whether or not disability payments are considered divisible assets in a divorce. This question has been answered in two ways. A Colorado court of appeals decision decided that VA disability payments were not property and therefore could not be divided in this way. Another method is an U.S. Supreme Court ruling in Howell that held that garnishing a veteran's VA disability benefits to pay Alimony is against the Uniformed Services Former Spouses Protection Act (USFSPA).

Another concern relating to this subject is the treatment of disability benefits to children for maintenance and support. The USFSPA and the Supreme Court both forbid states from counting disability benefits as income for these purposes. However, certain states have adopted an alternative approach. Colorado, for example, adds all income sources together to determine the amount needed to support a spouse. The state then adds disability income to reflect their tax-free status.

It is also essential to know how divorce will affect their disability benefits and how their ex spouses can slash their income. If they are aware of these issues, veterans can ensure the security of their income and avoid unwanted consequences.