How a Veterans Disability Settlement Can Affect a Divorce Case
Jim’s 58 year old client is permanently disabled as a result of his time in the military. He receives a monthly pension benefit from the Department of Veterans Affairs.
He would like to know how the verdict of a jury will affect his VA benefits. The answer is not. But it will have an impact on his other sources of income.
Do I have the right to receive compensation for an Accident?
If you’ve been in the military but are now permanently disabled due to injuries or illnesses, you may be eligible for a veterans disability settlement. This settlement can help compensate you for medical bills, lost income and other expenses resulting from your illness or injury. The type of settlement you’ll get depends on whether or not your condition is service-connected or non-service connected, what VA benefits you are eligible for, and how much your accident or injury will cost to treat.
Jim, a 58-year old Vietnam veteran was diagnosed with permanent disabilities due to his two years of service. He does not have enough working space to qualify for Social Security disability benefits but He does have a VA Pension benefit that provides cash and free medical care dependent on financial need. He would like to be aware of how a personal injury lawsuit will affect his ability to get this benefit.
The answer will depend on whether the settlement is a lump-sum or a structured one. Structured settlements are the ones that are paid over a time period instead of in one payment, and the amount paid by the defendant is calculated to offset any existing VA benefits. A lump sum payout will likely alter any existing benefits as the VA considers it as income and will increase it. In either case, if excess assets remain after the period of twelve months when the settlement has been annualized Jim could apply again for the Pension benefit but only if his assets are lower than a threshold with which the VA accepts as establishing financial need.
Do I require an Attorney?
Many spouses, service members, and former spouses have concerns about VA disability payments and their impact on money issues during divorce. Some people believe, among other things that Department of Inglewood veterans Disability attorney Affairs compensation payments can be divided like the military retirement in divorce cases, or that they’re “off limits” when it comes to calculating child support and alimony. These misconceptions could lead to financial mistakes that have serious consequences.
While it is possible to do an initial claim for disability benefits on your own, the majority of disabled veterans require the assistance of an experienced attorney. A skilled veteran’s disability lawyer will examine your medical records and gather all the necessary evidence needed to build a strong argument to the VA. The lawyer can also file any appeals that you may need in order to get the benefits you are entitled to.
In addition, the majority of VA disability lawyers don’t charge fees for consultations. The government will also pay the lawyer directly from the amount of retroactive benefits. This is an advantage of the Equal Access to Justice Act. The fee agreement should specify clearly the proportion of retroactive benefits to be paid to your lawyer. A fee agreement could state for instance that the government would provide the attorney with 20 percent of retroactive benefits. You are responsible for any additional amount.
Can I Garnish My VA Benefits?
The VA offers monthly payments to disabled veterans disability lawsuit. These payments are designed to offset some of the effects of disability, illness, or injuries sustained during or aggravated during a veteran’s military service. Like other income sources, veterans disability benefits are subject to garnishment.
Garnishment is a court-ordered procedure that an employer or inglewood veterans disability attorney government agency deduct money from the pay of an individual who owes the debt and pay it directly to a creditor. In the event of a divorce garnishment can be used for child or spousal care.
There are a few situations in which a veteran’s disability benefits are able to be refunded. The most frequent is the veteran who has waived his military retirement to receive disability compensation. In these cases the amount of pension allocated to disability payments could be garnished to meet family support obligations.
In other instances, a veteran’s benefits can be seized to pay medical expenses or past due federal student loans. In these situations, a court may be able to direct the case to the VA to obtain the necessary information. It is crucial for a disabled veteran to hire a knowledgeable attorney to ensure that their disability benefits are not removed. This will prevent them from having to rely on payday lenders or private loans.
Can I Represent Myself in a Divorce Case?
VA disability settlements are a tremendous help to veterans and their families. However they do come with their own set complications. If a person divorces and receives a VA settlement and is eligible, they should be aware of the implications to the benefits they receive.
A major issue in this context is whether disability payments are considered to be divisible assets in a divorce. The issue has been resolved in a variety of ways. One way is by a Colorado court of appeals decision, which found that VA disability payments are not property, and therefore cannot be divided in this way. Another option is a U.S. Supreme Court ruling in Howell that ruled that garnishing a veteran’s VA disability benefits to pay for the payment of alimony is in violation of the Uniformed Services Former Spouses Protection Act (USFSPA).
Another concern with this subject is how disability benefits are interpreted for purposes of child support and maintenance. Both the USFSPA and the Supreme Court, prohibit states from claiming disability benefits as income. Certain states take different methods. For instance, Colorado adds up all sources of income to determine the amount in support a spouse requires and then adds the disability payments to take the fact that they are tax-free.
It is also important to know how divorce affects their disability benefits and how their spouses who divorced could take advantage of their compensation. By being informed about these issues, veterans can ensure their compensation as well as avoid any unintended consequences.