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 gets a monthly pension from the Department of Veterans Affairs.
He wants to know if a jury verdict will impact his VA benefits. It will not. It will, however, have an impact on his other income sources.
Can I get compensation in the event of an accident?
If you’ve served in the military and are now permanently disabled due to injuries or illnesses, you could be eligible for a veteran disability settlement. This settlement will help pay you for medical bills, lost income and other expenses that resulted from your illness or injury. The type of settlement you’ll be able to receive depends on whether your condition is service-connected or not connected, which VA benefits you qualify for, and what your injury or accident will cost to treat.
Jim is a 58 year old Vietnam veteran was diagnosed with permanent disabilities as a result of his two years of service. He doesn’t have enough work space to qualify for Social Security Disability benefits, but he has the VA Pension, which provides cash and medical care for free according to his financial need. He wants to be aware of how a personal injury lawsuit will affect his eligibility to receive this benefit.
The answer depends on if the settlement is a lump sum or a structured one. Structured settlements involve payments over time instead of one single payment. The amount that defendant pays is calculated to offset the existing VA benefits. In contrast, a lump sum payout will likely affect any existing benefits because the VA considers it to be income and will annually calculate it. If Jim has surplus assets after the settlement has been annualized the applicant can apply again to receive the Pension benefit. However the assets he has to be below a minimum threshold that 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 effect on money issues in divorce cases. There are many other reasons, but some people think that the Department of Veterans Affairs’ compensation payments can be split as a military pension in divorce or are “off limits” in the calculation of child support and Alimony. These misconceptions can lead to financial errors that have serious repercussions.
It is possible to file an application for disability benefits yourself However, most disabled veterans disability lawsuit would require the help of a qualified lawyer. A skilled veteran’s disability lawyer can review your medical documents and gather the required evidence to support your argument to the VA. The lawyer can also help to make any appeals you require to secure the benefits you’re entitled to.
The majority of VA disability lawyers don’t charge for consultations. The government also pays the lawyer directly from your award of retroactive benefits. This is an advantage of the Equal Access to Justice Act. The fee agreement should clearly define the percentage of retroactive benefits to be paid to your lawyer. For example an agreement on fees could provide that the government can pay the attorney up to 20% of the retroactive benefits or pay. You will be accountable for any additional amounts.
Can I Garnish My VA Benefits?
The VA pays a monthly amount of compensation to disabled veterans. The payments are intended to help offset the impact of diseases, injuries or disabilities that were suffered or aggravated during the course of a veteran’s time of service. As with all income, benefits for veterans with disabilities are subject to garnishment.
Garnishment is a legal procedure that allows a judge to require an employer or government agency to omit funds from the pay of an employee who owes money and send them directly to a creditor. In the event of a divorce, garnishment can be used to pay for spousal support or child support.
There are some situations where the benefits of a veteran could be encashable. Most often, it is the case of a veteran who waived his military retirement in order to receive disability compensation. In these situations, the portion of the pension apportioned to disability pay could be garnished to meet family support obligations.
In other instances it is possible for a veteran’s benefits to be withdrawn to cover medical expenses or past-due federal student loans. In these instances the court might be able to go straight to the VA to obtain the necessary information. The disabled veteran should consult an experienced attorney to safeguard their disability benefits. This can stop them from relying on payday lenders and private loans.
Can I Represent Myself in a Divorce Case?
VA disability settlements are an excellent help to veterans and their families. However, they come with their own set complications. If a person divorces and receives an VA settlement and is eligible, they should know what this will do to the benefits they receive.
In this context, the main question is whether disability benefits are considered assets that could be divided during a divorce. This issue has been settled in a couple of ways. A Colorado court of appeals ruling declared that VA disability payments were not property and therefore could not be divided this way. The U.S. Supreme Court ruled in Howell that garnishing a veteran’s VA disability payments for Alimony was against the USFSPA.
Another concern with this topic is how the disability benefits are interpreted in the context of child maintenance and support. Both the USFSPA and the Supreme Court, prohibit states from utilizing disability benefits as income. Certain states use different methods. Colorado for instance adds all income sources together to determine the amount needed to support a spouse and then adds disability payments in order to take into account their tax-free status.
Additionally, it is essential for veterans disability attorneys to know how their disability benefits will be affected when they get divorced and how their spouses’ ex-spouses could garnish their compensation. By being aware of these issues, vets can protect their compensation and avoid any unintended consequences.