How a Veterans Disability Settlement Can Affect a Divorce Case

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

He wants to know if the verdict of a jury will impact his VA benefits. The answer is not. It will, however, affect his other income sources.

Can I receive compensation for an accident?

You may be eligible for a settlement if were in the military but are now permanently disabled because of injuries or illnesses. This settlement can help you get compensation for medical bills, lost wages and other expenses that result from your injury or illness. The kind of settlement you can get depends on whether or not your health condition is non-service connected, what VA benefits you qualify for, and what your accident or injury will cost to treat.

For instance, Jim is a 58-year old veteran who was diagnosed with permanent disabilities from two years of service during the Vietnam War. He doesn't have enough space for work to be eligible for Social Security Disability benefits, but he has the VA Pension, which provides free medical care and cash according to his financial need. He wants to know if a personal injury settlement would affect his ability receive this benefit.

The answer depends on whether the settlement is in the form of a lump sum or a structured settlement. Structured settlements are payments made over a period of time rather than in a single payment and the amount paid by the defendant is used to offset any existing VA benefits. However, a lump sum settlement will probably affect any existing benefits because the VA considers it income and will annualize it. In any event, if extra assets are left over after the twelve month period after the settlement is annually recalculated, Jim could reapply for the Pension benefit but only if his assets are below a certain threshold that the VA agrees establishes financial need.

Do I have to hire an attorney?

Many service members, spouses and former spouses have questions about VA disability payments and their effect on financial issues during divorce. Among other things, some people think that the Department of Veterans Affairs' compensation payments are able to be divided like a military pension in a divorce or that they are "off limits" in the calculation of child support and alimony. These misconceptions can lead to grave financial errors.

While it is possible to file an initial claim for disability benefits on your own, the majority of disabled veterans require the assistance of a skilled attorney. A veteran's disability lawyer who is experienced will review your medical documents and gather the required evidence to support your case at the VA. The lawyer can also file any appeals that you might require to get the benefits you are entitled to.

Most VA disability lawyers do not charge for consultations. The government will also pay the lawyer directly from your amount of retroactive benefits. This is one of the benefits of the Equal Access to Justice Act. The amount of retroactive past due benefits that your lawyer will receive should be outlined in your fee agreement. A fee agreement could say, for example, that the government will give the attorney up to 20 percent of retroactive benefits. Any additional amounts will be your responsibility.

Can I Garnish My VA Benefits?

The VA pays a monthly amount of compensation to disabled veterans. The payments are intended to help offset the impact of injuries, illnesses or disabilities that have been sustained or aggravated during a veteran's service. Like other income sources, veterans disability benefits can be subject to garnishment.

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

However, there are certain circumstances where a veteran's disability benefits may be repaid. The most common scenario is that of a veteran who has renounced his military retirement in order to receive disability compensation. In these cases, the amount of pension that is allocated to disability pay could be garnished to meet family support obligations.

In other situations, veteran's benefits could be garnished to cover medical expenses or federal student loans that are over due. In these instances the court can go directly to the VA for the information they need. A disabled veteran should hire an experienced attorney to safeguard their disability benefits. This can 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 great help to veterans as well as their families. However they have certain complications. For example, if a veteran gets divorced and is awarded a VA disability settlement, they need to know how this will affect their benefits.

One of the major issues in this context is whether or not the disability payments count as divisible assets in divorce. This question has been answered in two ways. One option is an Colorado court of appeals decision that found that VA disability payments are not property and cannot be divided in that way. The U.S. Supreme Court ruled in Howell, that garnishing a veteran's VA disability benefits for the purpose of alimony was in violation of USFSPA.

Another concern that is related to this subject is how disability benefits are treated for purposes of child maintenance and support. Both the USFSPA as well as the Supreme Court, prohibit states from claiming disability benefits as income. However, certain states have chosen to take a different approach. Colorado for instance, adds all sources of income together to determine the amount needed to support a spouse and then adds disability income in order to account for their tax-free status.

Finally, it is important that veterans understand how their disability benefits will be affected if they are divorced and how their spouses' ex-spouses could be able to garnish their compensation. If they are aware of these issues, veterans can protect their benefits and avoid unwanted consequences.