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How a Veterans Disability Settlement Can Affect a Divorce Case

Jim's 58-year-old client is permanently disabled because of his military service. He receives a monthly pension from the Department of Veterans Affairs.

He wants to know if the jury's verdict will affect his VA benefits. The answer is that it will not. But it will have some 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 due to injuries or illnesses, you may be eligible for a veteran disability settlement. This settlement will allow you to receive compensation for your medical expenses, lost wages, and other expenses resulting from your injury or illness. The type of settlement you are eligible for will depend on whether or not your illness or injury is related to service, what VA benefits you qualify for, as well as the cost to treat your injury or accident.

For example, Jim is a 58-year veteran who was diagnosed with permanent disabilities after two years of service in the Vietnam War. He does not have enough work space to be eligible for Social Security disability benefits but He does have a VA Pension benefit that provides cash and free medical assistance in accordance with financial need. He wants to determine if a personal accident settlement would affect his ability get this benefit.

The answer depends on whether the settlement is in the form of an unintentional lump sum or a structured settlement. Structured settlements are payments made over a time period rather than in a single payment and the amount received by the defendant is calculated to offset any existing VA benefits. A lump sum settlement can affect any existing VA benefits since the VA will annualize and consider it to be income. If Jim has extra assets after the settlement has been annualized and he wants to reapply, he will be eligible for the pension benefit. However his assets must be less than a certain threshold that the VA has agreed establishes financial necessity.

Do I need to employ an attorney?

Many spouses, members of the military, and former spouses have concerns about VA disability payments and their effect on financial issues during a divorce. Some people believe, among other things that Department of Veterans Affairs compensation payments can be split as a military retirement in divorce cases or that they're "off limits" in calculating child support and Alimony. These misconceptions can lead to financial errors which can have serious consequences.

While it is possible to do an initial claim for disability benefits on your own, most disabled veterans get the assistance of a skilled lawyer. A disability attorney for veterans can review your medical records to collect the evidence necessary to present a convincing case to the VA. The lawyer will also be able to make any appeals you need to get the benefits you're entitled to.

Most VA disability lawyers don't charge for consultations. The government will also pay the lawyer directly from your benefit of retroactive benefits. This is a benefit of the Equal Access to Justice Act. Your fee agreement should clearly specify the percentage of retroactive benefits that will be paid to your lawyer. A fee agreement could say, for example, that the government would pay the attorney 20% of retroactive benefits. Any additional amounts will be your to pay.

Can I Garnish My VA Benefits?

The VA provides monthly compensation to disabled veterans disability attorneys. The payments are meant to help offset the effects of disability, illness or injuries incurred during or aggravated due to a veteran's military service. Like all income, the veterans disability benefits can be subject to garnishment.

Garnishment can be a legal proceeding that allows a judge to require an employer or government agency to take money from the pay of someone who owes money and send them directly to a creditor. In the case of divorce, garnishment can be used to pay spousal or child support or child support.

There are situations where a veteran's benefits can be garnished. The most common scenario is that of a veteran who has renounced his military retirement to receive disability compensation. In these cases, the amount of pension that is allocated to disability pay may be garnished for family support obligations.

In other circumstances, veteran's benefit may be seized in order to cover medical expenses or federal student loans that are past due. In these situations the court may be able to go straight to the VA to obtain the necessary information. It is vital for disabled veterans to find a competent lawyer to ensure that their disability benefits aren't taken away. This can stop them from having to rely on payday lenders and private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be a huge benefit for veterans and their families, however they don't come without their own set of complications. If a veteran divorces and receives a VA settlement and is eligible, they should be aware of the implications to their benefits.

In this regard the most important question is whether or not disability benefits are considered assets that could be divided during a divorce. This question has been resolved in a variety of ways. A Colorado court of appeals decision declared that VA disability payments were not property and could not be divided this manner. The other way is by a U.S. Supreme Court ruling in Howell that ruled that garnishing a veteran's VA disability payments to pay an alimony payment is a violation of the Uniformed Services Former Spouses Protection Act (USFSPA).

Another concern relating to this subject is the treatment of disability benefits for child support and maintenance. Both the USFSPA as well as the Supreme Court, prohibit states from counting disability benefits as income. However, certain states have adopted a different approach. For instance, Colorado adds up all sources of income to determine how much in support a spouse requires and then adds disability benefits to take into account that they are tax-free.

Additionally, it is essential for veterans to be aware of how their disability compensation will be affected if they are divorced and how their ex-spouses can be able to garnish their compensation. If they are aware of these issues, veterans can ensure the security of their income and avoid unwanted consequences.

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