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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 because of his military service. He receives a monthly Pension benefit from the Department of Veterans Affairs.

He wants to be aware of whether a verdict by a jury will impact his VA benefits. It will not. But 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?

You could be eligible to receive a settlement if 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 costs that resulted from your injury or sickness. The type of settlement you can receive will depend on whether your illness or injury is a result of a service connection, the VA benefits you are eligible for, and the cost to treat your accident or injury.

Jim, a 58-year old Vietnam veteran was diagnosed with permanent disabilities due to his two years of service. He doesn’t have enough space for work to be eligible for Social Security Disability benefits, however, he does have the VA Pension, which provides cash and medical treatment for free dependent on the amount of money he needs. He wants to understand how a personal injury lawsuit will affect his eligibility to get this benefit.

The answer is dependent on whether the settlement is a lump sum or a structured one. Structured settlements are based on payments over a period of time rather than one single payment. The amount paid by the defendant is calculated to offset the existing VA benefits. In contrast, a lump sum payout is likely to affect any existing benefits because the VA considers it a tax-deductible income and will annually increase it. If Jim has assets that are not used up after the settlement is annually adjusted then he is eligible to receive the Pension benefit. However the assets must be under a limit that the VA has determined to be a financial necessity.

Do I require an attorney?

Many service members, spouses and former spouses are confused about VA disability compensation and its impact on the financial aspects of a divorce case. Some people believe, among other things, that the Department of sandersville veterans disability attorney (https://vimeo.com/709739980) Affairs compensation payments can be split as military retirements in a divorce case or that they’re “off limits” when it comes to calculating child support and alimony. These misconceptions can lead to grave financial errors.

It is possible to file an application for disability benefits by yourself, but most disabled veterans will require the help of a professional lawyer. An experienced veteran’s disability lawyer can examine your medical records and gather all the necessary evidence to support your argument to the VA. The lawyer will also be able to make any appeals you require to receive the benefits you’re entitled to.

Additionally, the majority of VA disability lawyers do not charge fees for consultations. The government also pays the lawyer directly from your payment of retroactive benefits. This is a benefit of the Equal Access to Justice Act. The amount of retroactive past due benefits your lawyer will receive must be specified in your fee agreement. A fee agreement could stipulate that, for instance, the government will pay the attorney up 20 percent of retroactive benefits. You will be accountable for any additional costs.

Can I Garnish My VA Benefits?

The VA pays a monthly amount of compensation to disabled veterans. The payments are meant to compensate for some of the consequences of illnesses, disabilities or injuries incurred during or aggravated during a veteran’s military service. The benefits for veterans’ disability are subject to garnishment, just like any other income.

Garnishment is a legal procedure that permits a court to make an order to an employer or government agency to omit funds from the pay of someone who owes money, and then send them directly to the creditor. In the event of divorce, garnishment may be used to pay child or spousal maintenance.

There are some situations where a veteran’s benefits can be encashable. The most common scenario is that of a veteran who has waived his retirement from the military in order to receive disability compensation. In these scenarios the amount of pension that is allocated to disability pay can also be garnished in order to cover the obligations of family support.

In other cases, a veteran’s benefits can also be garnished to pay medical expenses 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 important for disabled veterans to find a competent attorney to ensure that their disability benefits aren’t being snatched away. This will allow them to avoid being forced to rely on private loans and payday lenders.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a major benefit for veterans and their families, but they’re not without their own set of challenges. If a veteran divorces and receives a VA settlement then they must be aware of the implications to their benefits.

In this regard one of the major issues is whether disability benefits are considered assets that can be divided in a divorce. This issue has been addressed in a couple of ways. One method is the Colorado court of appeals decision, which found that VA disability payments are not property and cannot be divided in this way. The U.S. Supreme Court ruled in Howell, that garnishing a veteran’s VA disability benefits for an alimony payment was a violation of USFSPA.

Another concern relating to this topic is the treatment of disability benefits to children for maintenance and support. Both the USFSPA and the Supreme Court, prohibit states from utilizing disability benefits as income. However, certain states have adopted the opposite approach. For instance, Colorado adds up all sources of income to determine the amount in support a spouse will need and then adds disability benefits to take into account that they are tax free.

It is also vital that new kensington veterans disability law firm know how divorce affects their disability benefits and how ex-spouses can slash their income. By being aware of these issues, vets can protect their income as well as avoid any unintended consequences.