How a Veterans Disability Settlement Can Affect a Divorce Case
Jim's client, a 58-year-old man is permanently disabled as a result of his military service. He receives a monthly pension benefit from the Department of Veterans Affairs.
He would like to know how the jury's verdict will impact his VA benefits. It won't. It will, however, affect the income sources of his other income sources.
Can I receive compensation in the event of an accident?
You could be eligible for a settlement if you were a soldier but are now permanently disabled because of injuries or illnesses. This settlement will pay you for medical bills, lost income and other costs that resulted from your injury or sickness. The kind of settlement you will receive will depend on whether your illness or injury is related to service, 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 based on two years of service in the Vietnam War. He doesn't have enough space for work to be eligible for Social Security Disability benefits, however, he can claim an VA Pension that offers cash and medical treatment for free depending on the financial needs of his. He wants to find out if a personal injury settlement will affect his ability to receive this benefit.
The answer is dependent on whether the settlement is a lump-sum or a structured one. Structured settlements consist of installments over time, rather than a single payment. The amount that defendant pays is calculated to offset the existing VA benefits. In contrast, a lump sum payout is likely to affect existing benefits since the VA considers it as income and will increase it. In any event, if extra assets remain after the twelve-month period when the settlement is annualized Jim may be eligible to apply again for the Pension benefit, but only if his assets are less than a minimum threshold that the VA is able to agree establishes financial need.
Do I need to hire an attorney?
Many spouses, military personnel, and former spouses are confused about VA disability compensation and its effect on the financial aspects of divorce cases. Some people think, for instance, that the Department of
camp hill veterans disability lawsuit Affairs compensation payments can be divided like an army retirement in divorce proceedings 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 repercussions.
It is possible to submit an application for disability benefits yourself However, most disabled
little silver veterans disability law firm will require the help from a competent lawyer. A qualified veteran's disability lawyer will examine your medical documents and gather the required evidence to make a convincing argument to the VA. The lawyer can also file any appeals you might need to receive the benefits you are entitled to.
Moreover, most VA disability lawyers don't charge fees for consultations. Additionally, the lawyer will generally be paid by the government directly out of your retroactive past-due benefits. This is an advantage of the Equal Access to Justice Act. The fee agreement should clearly state the amount of retroactive benefits to be paid to your lawyer. A fee agreement could stipulate that, for instance, the government will pay the attorney 20% of retroactive benefits. Any additional amount is your obligation.
Can I Garnish My VA Benefits?
The VA pays monthly compensation to disabled veterans. The purpose of the payments is to compensate for some of the effects of diseases, disabilities or injuries that are sustained or aggravated due to a veteran's military service. Like all incomes, veterans disability benefits are subject to garnishment.
Garnishment allows a court order that an employer or government agency stop money from the wages of an individual who owes an amount and then pay it directly to the creditor. In the case of a divorce, garnishment could be used to pay spousal maintenance or child support.
However, there are certain situations in which a veteran's disability benefits could be garnished. Most often, it is the case of a veteran who renounced his military retirement in order to receive disability compensation. In these situations, the amount of pension that is allocated to disability pay can be garnished to pay family support obligations.
In other instances it is possible for a veteran's benefits to be seized to pay medical expenses or past-due federal student loans. In these situations the court can go directly to the VA to obtain the information they need. It is essential for disabled veterans to work with a reputable lawyer to ensure that their disability benefits are not garnished. This can help them avoid having to depend on payday loans and private loans. lenders.
Can I Represent Myself in a Divorce Case?
VA disability settlements can be a huge help to veterans as well as their families. However, they come with their own set complications. If a person divorces and receives a VA settlement, he or she should know what this will do to their benefits.
In this context, a major question is whether disability benefits are considered assets which can be divided in a divorce. The issue has been resolved in a variety of ways. A Colorado court of appeals ruling decided that VA disability payments were not property and could not be divided this manner. The U.S. Supreme Court ruled in Howell that garnishing a veteran's VA disability payments to pay the purpose of alimony was in violation of USFSPA.
Another concern with this topic is the treatment of disability benefits for child support and maintenance. Both the USFSPA, and the Supreme Court, prohibit states from claiming disability benefits as income. Certain states use a different approach. Colorado for instance takes all income sources together to determine the amount needed to support a spouse and then adds disability benefits in order to take into account their tax-free status.
Finally, it is important for veterans to be aware of how their disability benefits will be affected if they become divorced and how their ex-spouses may be able to garnish their compensation. By being informed about these issues, vets can protect their compensation and avoid any unintended consequences.
