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How a Veterans Disability Settlement Can Affect a Divorce Case
Jim's 58-year-old client is permanently disabled from his service in the military. He receives a monthly pension benefit from the Department of Veterans Affairs.
He would like to be aware of whether a verdict by a jury will affect his VA benefits. It won't. It will, however, affect the income sources of his other income sources.
Can I Get Compensation for an Accident?
You may be eligible to receive a settlement if you were in the military but are now permanently disabled because of injuries or illnesses. This settlement can assist in compensating you for medical bills, lost income and other costs that resulted from your injury or sickness. The type of settlement that you will receive will depend on whether your injury or illness is a result of a service connection, the VA benefits you qualify for, as well as the cost to treat your injury or accident.
Jim, a 58-year old Vietnam veteran, was diagnosed as having permanent disabilities as a result of his two years of service. He isn't in a position to have enough work space to be eligible for Social Security Disability benefits, however, he can claim the VA Pension, which provides cash and medical care for free dependent on the amount of money he needs. He would like to learn how a personal injury settlement will affect his ability to receive this benefit.
The answer is dependent on whether the settlement is in the form of either a lump sum or structured settlement. Structured settlements are the ones that are paid over a period of time rather than a single payment and the amount received by the defendant is used to offset any existing VA benefits. In contrast, a lump sum payout will likely impact any benefits already in place because the VA considers it to be income and will annually calculate it. In any case, if there are excess assets are left over after the period of twelve months after the settlement is annually recalculated, Jim could be eligible for a new Pension benefit but only if his assets fall lower than a threshold with which the VA agrees establishes financial need.
Do I need to employ an attorney?
Many spouses, service members and former spouses are confused about VA disability compensation and its impact on financial issues in a divorce case. Some people believe, among other things that Department of Veterans Affairs compensation payments can be divided like an army retirement in divorce cases or that they're "off limits" in calculating child support and alimony. These misconceptions can result in financial mistakes that have serious repercussions.
It is possible to submit an application for disability benefits on your own however, the majority of disabled veterans would benefit from the assistance of a qualified lawyer. A veteran's disability lawyer can review your medical records to collect the evidence necessary to argue your case before the VA. The lawyer can also help to file any appeals you may require to secure the benefits you are entitled to.
Moreover, most VA disability lawyers charge no fees for consultations. The government also pays the lawyer directly from the 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. For instance an agreement on fees could state that the government will pay the attorney up to 20% of the retroactive benefits or pay. You will be responsible for any additional amounts.
Can I Garnish My VA Benefits?
If a disabled veteran receives compensation from the VA it is in the form of monthly payments. The payments are meant to offset some of the effects of diseases, disabilities or injuries sustained or aggravated during a veteran's military service. As with all income, veterans disability benefits can be subject to garnishment.
Garnishment is a court-ordered procedure that an employer or a government agency withhold money from the wages of a person who is in the process of paying a debt and send it directly to the creditor. In the event of a divorce garnishment can be used for child or spousal care.
There are a few situations in which veterans' benefits could be repaid. The most common situation involves veterans who have waived their military retirement to receive disability compensation. In these cases the amount of pension that is attributed to disability benefits could be garnished to meet family support obligations.
In other instances, a veteran’s benefits can also be seized to cover medical expenses or federal student loans that are past due. In these instances, a court can go directly to the VA for the information they require. A disabled veteran should seek out an experienced lawyer to protect their disability benefits. This will prevent them from being forced to rely on private loans and payday lenders.
Can I Represent Myself in a Divorce Case?
VA disability settlements can be an enormous aid to veterans disability law firm and their families, however they're not without their own set-of complications. If a veteran is divorced and receives a VA settlement it is important to be aware of the implications to their benefits.
A major issue in this context is whether or not disability payments are considered divisible assets in a divorce. This issue has been addressed in a variety of ways. A Colorado court of appeals ruling decided that VA disability payments were not property and therefore could not be divided this manner. The U.S. Supreme Court ruled in Howell, that garnishing a veteran's VA disability benefits for Alimony was against the USFSPA.
Another issue that is related to this subject is the treatment of disability benefits for child maintenance and support. The USFSPA and the Supreme Court both forbid states from claiming disability benefits as income to be used for this purpose. Some states have different methods. Colorado for instance takes all income sources together to determine the amount required to support a spouse. The state then adds disability income to account for their tax-free status.
Finally, it is important for veterans to understand how their disability benefits will be affected if they get divorced and how their ex-spouses may be able to garnish their compensation. By being informed about these issues, vets can protect their compensation as well as avoid any unintended consequences.
Jim's 58-year-old client is permanently disabled from his service in the military. He receives a monthly pension benefit from the Department of Veterans Affairs.
He would like to be aware of whether a verdict by a jury will affect his VA benefits. It won't. It will, however, affect the income sources of his other income sources.
Can I Get Compensation for an Accident?
You may be eligible to receive a settlement if you were in the military but are now permanently disabled because of injuries or illnesses. This settlement can assist in compensating you for medical bills, lost income and other costs that resulted from your injury or sickness. The type of settlement that you will receive will depend on whether your injury or illness is a result of a service connection, the VA benefits you qualify for, as well as the cost to treat your injury or accident.
Jim, a 58-year old Vietnam veteran, was diagnosed as having permanent disabilities as a result of his two years of service. He isn't in a position to have enough work space to be eligible for Social Security Disability benefits, however, he can claim the VA Pension, which provides cash and medical care for free dependent on the amount of money he needs. He would like to learn how a personal injury settlement will affect his ability to receive this benefit.
The answer is dependent on whether the settlement is in the form of either a lump sum or structured settlement. Structured settlements are the ones that are paid over a period of time rather than a single payment and the amount received by the defendant is used to offset any existing VA benefits. In contrast, a lump sum payout will likely impact any benefits already in place because the VA considers it to be income and will annually calculate it. In any case, if there are excess assets are left over after the period of twelve months after the settlement is annually recalculated, Jim could be eligible for a new Pension benefit but only if his assets fall lower than a threshold with which the VA agrees establishes financial need.
Do I need to employ an attorney?
Many spouses, service members and former spouses are confused about VA disability compensation and its impact on financial issues in a divorce case. Some people believe, among other things that Department of Veterans Affairs compensation payments can be divided like an army retirement in divorce cases or that they're "off limits" in calculating child support and alimony. These misconceptions can result in financial mistakes that have serious repercussions.
It is possible to submit an application for disability benefits on your own however, the majority of disabled veterans would benefit from the assistance of a qualified lawyer. A veteran's disability lawyer can review your medical records to collect the evidence necessary to argue your case before the VA. The lawyer can also help to file any appeals you may require to secure the benefits you are entitled to.
Moreover, most VA disability lawyers charge no fees for consultations. The government also pays the lawyer directly from the 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. For instance an agreement on fees could state that the government will pay the attorney up to 20% of the retroactive benefits or pay. You will be responsible for any additional amounts.
Can I Garnish My VA Benefits?
If a disabled veteran receives compensation from the VA it is in the form of monthly payments. The payments are meant to offset some of the effects of diseases, disabilities or injuries sustained or aggravated during a veteran's military service. As with all income, veterans disability benefits can be subject to garnishment.
Garnishment is a court-ordered procedure that an employer or a government agency withhold money from the wages of a person who is in the process of paying a debt and send it directly to the creditor. In the event of a divorce garnishment can be used for child or spousal care.
There are a few situations in which veterans' benefits could be repaid. The most common situation involves veterans who have waived their military retirement to receive disability compensation. In these cases the amount of pension that is attributed to disability benefits could be garnished to meet family support obligations.
In other instances, a veteran’s benefits can also be seized to cover medical expenses or federal student loans that are past due. In these instances, a court can go directly to the VA for the information they require. A disabled veteran should seek out an experienced lawyer to protect their disability benefits. This will prevent them from being forced to rely on private loans and payday lenders.
Can I Represent Myself in a Divorce Case?
VA disability settlements can be an enormous aid to veterans disability law firm and their families, however they're not without their own set-of complications. If a veteran is divorced and receives a VA settlement it is important to be aware of the implications to their benefits.
A major issue in this context is whether or not disability payments are considered divisible assets in a divorce. This issue has been addressed in a variety of ways. A Colorado court of appeals ruling decided that VA disability payments were not property and therefore could not be divided this manner. The U.S. Supreme Court ruled in Howell, that garnishing a veteran's VA disability benefits for Alimony was against the USFSPA.
Another issue that is related to this subject is the treatment of disability benefits for child maintenance and support. The USFSPA and the Supreme Court both forbid states from claiming disability benefits as income to be used for this purpose. Some states have different methods. Colorado for instance takes all income sources together to determine the amount required to support a spouse. The state then adds disability income to account for their tax-free status.
Finally, it is important for veterans to understand how their disability benefits will be affected if they get divorced and how their ex-spouses may be able to garnish their compensation. By being informed about these issues, vets can protect their compensation as well as avoid any unintended consequences.