by Porfirio DailyHow 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 disability law firms Affairs.
He would like to know if a jury verdict will impact his VA benefits. The answer is that it will not. It will, however, affect his other income sources.
Can I Receive Compensation in the event of an accident?
You may be eligible for a settlement if have served in the military, but are now permanently disabled as a result of injuries or illnesses. This settlement can help compensate you for medical bills, lost income and other expenses resulting from your injury or sickness. The type of settlement that you are eligible for will depend on whether your injury or illness is related to service, what VA benefits you qualify for, and the cost to treat your injury or accident.
For example, Jim is a 58-year old veteran who was diagnosed with permanent disabilities from two years of service during the Vietnam War. He isn’t in a position to have enough space for work to qualify for Social Security Disability benefits, however, he is able to claim an VA Pension that offers cash and medical care for free based on his financial need. He would like to find out if a personal injury settlement will affect his ability 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 are the ones that are paid over a long period of time rather than in a single payment, and the amount paid by the defendant is used to offset any existing VA benefits. A lump sum settlement can affect any existing VA benefits as the VA will annually calculate and consider it to be income. In any case, if there are excess assets are left over after the period of twelve months when the settlement has been annualized Jim may be eligible to apply again for the Pension benefit but only if his assets are below a threshold that the VA determines to be a financial need.
Do I require an attorney?
Many spouses, military personnel, and former spouses are confused about VA disability compensation and its impact on financial issues in a divorce case. There are many other reasons, but some people think that the Department of veterans disability lawsuit Affairs’ compensation payments are able to be divided like a pension from a military service in a divorce or that they are “off limits” in the calculation of child support and alimony. These misconceptions may lead to serious financial mistakes.
It is possible to file an application for disability benefits yourself, but most disabled veterans will benefit from the assistance of a professional lawyer. An experienced veteran’s disability lawyer will examine your medical records and gather all the necessary evidence to support your case 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 usually be paid by the government directly from your retroactive past due benefits. This is one of the benefits of the Equal Access to Justice Act. Your fee agreement should specify clearly the amount of retroactive benefits to be paid to your lawyer. A fee agreement could state that, for example, the government will give the attorney up to 20% of retroactive benefits. You will be accountable for any additional amount.
Can I Garnish My VA Benefits?
If a disabled veteran receives compensation from the VA it is received in the form of monthly payments. The payments are intended to offset the effects of injuries, diseases or disabilities that have been sustained or aggravated by a veteran’s time of service. Like all incomes, veterans disability benefits could be subject to garnishment.
Garnishment is a court-ordered procedure that an employer or government agency withhold money 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 could be used to pay spousal support or child support.
There are situations where veterans’ benefits could be garnished. The most common scenario is that of a veteran who renounced his military retirement to receive disability compensation. In these cases the amount of pension that is attributed to disability benefits could be garnished to meet family support obligations.
In other circumstances, veteran’s benefits may also be seized in order to pay medical expenses or federal student loans that are over due. In these instances the court can go directly to the VA for the information they require. The disabled veteran should consult an experienced attorney to secure their disability benefits. This can help them avoid having to rely on private loans and payday lenders.
Can I Represent Myself in a Divorce Case?
VA disability settlements can be an enormous aid to veterans and their families, but they’re not without their own set of complications. If a veteran is divorced and receives a VA settlement it is important to be aware of what this might do to the benefits they receive.
In this regard, a major question is whether disability payments count as assets that can be divided in a divorce. The question has been answered in two ways. A Colorado court of appeals decision found that VA disability payments were not property and could not be divided in this manner. The U.S. Supreme Court ruled in Howell that garnishing a veteran’s VA disability benefits for alimony was a violation of USFSPA.
Another issue related to this issue is how disability benefits are interpreted in the context of child maintenance and support. Both the USFSPA as well as the Supreme Court, prohibit states from utilizing disability benefits as income. Some states have a different approach. For instance, Colorado adds up all sources of income to determine the amount in support a spouse needs and then pluses up the disability payments to take the fact that they are tax-free.
It is also important for veterans disability law firms to understand how their disability compensation will be affected if they become divorced and how their spouses who divorced them can take advantage of their benefits. By being knowledgeable about these issues, veterans can safeguard their income and avoid unwanted consequences.