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 south jordan Veterans disability attorney Affairs.

He wants to know if an award from a jury will affect his VA benefits. It will not. However, it will have an impact on the other sources of income he has.

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

You could be eligible for a settlement in the event that you served in the military but are now permanently disabled because of injuries or illnesses. This settlement can assist in compensating you for medical bills, lost income and other expenses resulting from your illness or injury. The type of settlement you are eligible for will depend on whether your injury or illness is service-connected, what VA benefits you qualify for, and the cost to treat your injury or accident.

Jim who is a 58-year veteran of the Vietnam war was diagnosed with permanent disabilities due to his two years of service. He does not have enough work space to qualify for Social Security disability benefits but He does have a VA Pension benefit, which offers medical care and cash based on financial need. He wants to find out if a personal injury settlement would affect his ability be eligible for this benefit.

The answer will depend on whether the settlement is in the form of either a lump sum or structured settlement. Structured settlements are based on payments over time instead of a single payment. The amount paid by the defendant is calculated to offset existing VA benefits. In contrast, a lump sum payout is likely to impact any benefits already in place because the VA considers it to be income and will annually calculate it. In the event that there are any excess assets are left over after the 12 month period when the settlement is annualized, Jim could be eligible for a new 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 spouses, service members, and former spouses have questions about VA disability benefits and their impact on money issues during a divorce. Some people think, for instance, that the Department of Veterans Affairs compensation payments can be divided like military retirements in divorce proceedings or that they're "off limits" when it comes to calculating child support and alimony. These misconceptions can result in financial mistakes that have serious consequences.

While it is possible to do an initial claim for disability benefits by yourself, the majority of disabled veterans require the help of a qualified attorney. A disability attorney for veterans disability lawyer can examine your medical records in order to gather the evidence needed to argue your argument before the VA. The lawyer will also be able to make any appeals you require to receive the benefits you are entitled to.

In addition, the majority of VA disability lawyers charge no fees for consultations. The government will also pay the lawyer directly from the payment of retroactive benefits. This is one of the benefits of the Equal Access to Justice Act. The fee agreement should clearly specify the percentage of retroactive benefits to be paid to your lawyer. A fee agreement could stipulate for instance that the government would give the attorney up to 20% of retroactive benefits. You will be responsible for any additional sums.

Can I Garnish My VA Benefits?

If a disabled veteran receives compensation from the VA it is received in the form of monthly payments. These payments are designed to help offset the effects of diseases, disabilities or injuries that are sustained or aggravated by the veteran's military service. The benefits for veterans' disability are subject to garnishment like any other income.

Garnishment allows a court order that an employer or government agency stop cash from the pay of a person who is in the process of paying an amount and then pay it directly to the creditor. In the event of divorce, the garnishment could be used for child or spousal care.

There are situations where a veteran's benefits can be garnished. The most common scenario is that of a veteran who has renounced his military retirement to receive disability compensation. In these cases, the portion of pension that is allocated to disability benefits can be garnished in order to meet family support obligations.

In other circumstances, veteran's benefit may be garnished to cover medical expenses or federal student loans that are past due. In these instances the court might be able to go straight to the VA to obtain the necessary information. A disabled veteran should employ an experienced attorney to safeguard their disability benefits. This will prevent them from relying on payday lenders and private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements are an excellent aid to veterans and their families. However they have their own set complications. For example the case where a veteran is divorced and receives an VA disability settlement, they need to know what this means for the benefits they receive.

A major issue in this regard is whether or south jordan veterans disability attorney not disability benefits are considered divisible assets in a divorce. The issue has been resolved in a variety of ways. A Colorado court of appeals ruling determined that VA disability payments were not property and could not be divided in this manner. Another way is through the U.S. Supreme Court ruling in Howell which held that garnishing the veteran's VA disability benefits to pay for the payment of alimony is in violation of the Uniformed Services Former Spouses Protection Act (USFSPA).

Another issue that is related to this subject is the treatment of disability benefits for child support and maintenance. Both the USFSPA, as well as the Supreme Court, prohibit states from claiming disability benefits as income. However, certain states have taken a different approach. For instance, Colorado adds up all sources of income to determine how much in support a spouse requires and then adds disability payments to take account that they are tax-free.

It is also important that veterans know the impact divorce has on their disability compensation and how ex-spouses could slash their benefits. By being informed about these issues, vets can protect their income and avoid the unintended consequences.