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 is able to receive a monthly pension from the Department of Veterans Affairs.
He would like to know how the verdict of a jury will affect his VA benefits. It won’t. However, it could have an impact on the other sources of income he has.
Can I get compensation in the event of an accident?
If you’ve been in the military but are now permanently disabled as a result of injuries or illnesses, you may be eligible for a veteran disability settlement. This settlement can allow you to receive compensation for your medical expenses, lost wages, and other expenses resulting from your illness or injury. The type of settlement you are eligible for will depend on whether or not your injury or illness is service-related, what VA benefits you are eligible for, as well as the cost to treat your accident or injury.
For example, Jim is a 58-year old veteran who was diagnosed with permanent disabilities from two years of service in the Vietnam War. He doesn’t have enough work quarters to be eligible for Social Security disability benefits but He does have a VA Pension benefit that provides cash and medical treatment for free in accordance with financial need. He would like to understand how a personal injury lawsuit will affect his eligibility to receive this benefit.
The answer is dependent on whether the settlement is a lump sum or a structured one. Structured settlements involve payments over time, rather than one single payment. The amount paid by the defendant is calculated to offset existing VA benefits. In contrast, a lump sum payout will likely impact any benefits already in place because the VA considers it a tax-deductible income and will annually increase it. If Jim has extra assets after the settlement is annually adjusted the applicant can apply again to be eligible for the pension benefit. However the assets he has to be under a limit that the VA has determined to be a financial necessity.
Do I Need to Hire an Attorney?
Many spouses, military personnel, and former spouses are concerned about VA disability payments and their effect on financial issues in divorce. There are many other reasons, but some people believe that the Department of palmview veterans disability law firm Affairs’ compensation payments can be divided like a military pension divorce or are “off limits” in calculation of child support and alimony. These misconceptions may lead to serious financial mistakes.
While it is possible to file an initial claim for disability benefits on your own, most disabled veterans benefit from the assistance of a professional lawyer. A veteran’s disability attorney can look over your medical records and collect the evidence necessary to prove your argument before the VA. The lawyer can also file any appeals that you may require to get the benefits you are entitled to.
Most VA disability lawyers do not charge for consultations. Additionally the lawyer will usually be paid by the government directly from your retroactive past due benefits. This is an advantage of the Equal Access to Justice Act. The amount of retroactive past-due benefits your lawyer will receive should be clearly stated in your fee agreement. A fee agreement may stipulate that, for example, the government would give the attorney up to 20 percent of retroactive benefits. You will be accountable for any additional amount.
Can I Garnish My VA Benefits?
The VA pays a monthly amount of compensation to disabled veterans. These payments are designed to alleviate some of the effects of diseases, disabilities, or injuries sustained during or aggravated by the veteran’s military service. Like other income sources, veterans disability benefits can be subject to garnishment.
Garnishment can be a legal proceeding that allows a judge to make an order to an employer or government agency to deduct funds from the pay of someone who owes money and send them directly to an individual creditor. In the event of divorce, garnishment can be used to pay child or spousal maintenance.
However, there are certain situations where disability benefits may be repaid. The most common scenario is a veteran who waived their military retirement to get disability compensation. In these scenarios the amount of pension that is allocated to disability benefits can be garnished to fulfill the family support obligations.
In other circumstances, veteran’s benefits may also be seized to pay for medical expenses or federal student loans that are over due. In these situations, a court can go directly to the VA to obtain the information they need. It is vital for a disabled veteran to work with a reputable lawyer to ensure that their disability benefits are not removed. This can help them avoid having to rely on payday loans and private loans. lenders.
Can I Represent Myself in a Divorce Case?
VA disability settlements can be a huge aid to veterans and their families. However, they come with certain complications. If a veteran is divorced and receives a VA settlement, he or she should know what this will do to their benefits.
A major issue in this context is whether or not disability benefits are considered divisible assets in a divorce. This question has been addressed in two ways. One way is by the Colorado court of appeals ruling that concluded that VA disability payments are not property, and therefore cannot be divided in this way. The U.S. Supreme Court ruled in Howell that garnishing a veteran’s VA disability payments for the purpose of alimony was in violation of USFSPA.
Another issue that is related to this topic is the treatment of disability benefits to children for maintenance and support. Both the USFSPA as well as the Supreme Court, prohibit states from counting disability benefits as income. However, certain states have taken the opposite approach. Colorado for instance, adds all sources of income together to determine the amount needed to support a spouse and then adds on disability payments in order to account for their tax-free status.
It is also important that veterans know the impact divorce has on their disability benefits and how their ex spouses can slash their income. By being knowledgeable about these questions, dunlap veterans disability law firm can guard their earnings and avoid any unintended consequences.