How a Veterans Disability Settlement Can Affect a Divorce Case
Jim’s client, 58 years old, is permanently disabled due to his time in the military. He receives a monthly pension benefit from the Department of Veterans Affairs.
He wants to know how a jury award will impact his VA benefits. The answer is that it will not. However, it will affect his other sources of income.
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 were in the military but are now permanently disabled as a result of injuries or illnesses. This settlement will allow you to get compensation for medical bills, lost wages and other expenses that result from your injury or illness. The type of settlement you’ll be able to get depends on whether or not your health condition is non-service connected, what VA benefits you are eligible for, and the amount your accident or injury will cost to treat.
For instance, Jim is a 58-year old veteran who was diagnosed with permanent disabilities based on two years of service during the Vietnam War. He does not have enough work space to qualify for Social Security disability benefits but he does have a VA Pension benefit that offers cash and free medical care in accordance with financial need. He would like to understand how a personal injuries settlement will affect his eligibility to get this benefit.
The answer depends on whether the settlement is in the form of a lump sum or a structured settlement. Structured settlements are settlements that are paid over a time frame rather than as a single payment and the amount received by the defendant is used to offset any existing VA benefits. A lump sum payment will impact any existing VA benefits since the VA will annually evaluate and consider it income. If Jim has extra assets after the settlement is annually adjusted and he wants to reapply, he will receive the Pension benefit. However his assets must be below a threshold the VA has set that establishes financial necessity.
Do I need to hire an attorney?
Many service members, spouses, and former spouses have concerns about VA disability payments and their impact on financial issues during divorce. Some people believe, for instance, that Department of veterans disability lawyers Affairs compensation payments can be split like the military retirement in a divorce case or that they’re “off limits” in calculating child support and Alimony. These misconceptions can result in financial mistakes that have serious repercussions.
It is possible to submit an application for disability benefits yourself however, the majority of disabled veterans will benefit from the assistance of a qualified lawyer. A skilled veteran’s disability lawyer can review your medical records and gather the necessary evidence to support your argument to the VA. The lawyer can also file any appeals that you might require to receive the benefits you deserve.
Moreover, most VA disability lawyers charge no fees for consultations. In addition, the lawyer will generally be paid by the government directly out of your retroactive past-due benefits. This is a benefit of the Equal Access to Justice Act. The proportion of retroactive past-due benefits your lawyer will receive should be clearly stated in your fee agreement. For example an agreement on fees could provide that the government can pay the lawyer up to 20% of retroactive benefits or award. The attorney is responsible for any additional amounts.
Can I Garnish My VA Benefits?
The VA pays a monthly amount of compensation to disabled veterans. The funds are intended to compensate for some of the effects of disabilities, diseases or injuries sustained or aggravated due to a veteran’s military service. Like all incomes, veterans disability benefits can be subject to garnishment.
Garnishment lets a court order that an employer or government agency deduct cash from the pay of a person who has the debt and pay it directly to the creditor. In the event of divorce, garnishment may be used to pay child or spousal care.
However, there are certain situations where disability benefits are able to be repaid. The most common scenario is that of a veteran who renounced his retirement from the military in order to receive disability compensation. In these situations the pension portion that is allocated to disability payments can be garnished to fulfill the family support obligations.
In other instances, a veteran’s benefits could be garnished to cover medical expenses or federal student loans that are past due. In these situations, a court can go directly to the VA for the information they require. A disabled veteran should hire an experienced attorney to secure their disability benefits. This will prevent them from being forced to rely on payday loans or private loans. lenders.
Can I Represent Myself in a Divorce Case?
VA disability settlements can be a major help for veterans and their families, but they don’t come without their own set of issues. For example when a veteran is divorced and receives an VA disability settlement, they should know what this means for the benefits they receive.
In this context one of the major issues is whether disability payments count as assets that can be split during a divorce. This question has been addressed in two ways. One way is by a Colorado court of appeals ruling that concluded that VA disability payments are not property and therefore cannot be divided as such. Another method is the U.S. Supreme Court ruling in Howell that held that garnishing the veteran’s VA disability payments to pay for alimony is a violation of the Uniformed Services Former Spouses Protection Act (USFSPA).
Another concern related to this topic is how the disability benefits are treated in the context of child support and maintenance. The USFSPA and the Supreme Court both forbid states from counting disability payments as income for these purposes. Certain states employ a different approach. For instance, Colorado adds up all sources of income to determine how much in support a spouse is entitled to and then pluses up the disability benefits to take into account that they are tax-free.
It is also crucial that veterans disability attorneys understand how divorce will affect their disability compensation and how their spouses who divorced could slash their benefits. By being informed about these issues, vets can protect their income and avoid unintended consequences.
