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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 from the Department of Veterans Affairs.
He wants to know if a jury award will affect his VA benefits. The answer is not. But it will have an impact on the other sources of income he has.
Can I Receive Compensation for an Accident?
If you've been in the military and are permanently disabled because of injuries or illnesses, you may be eligible for a veterans disability settlement. This settlement can help compensate you for medical expenses, lost income and other expenses that resulted from your illness or injury. The type of settlement that you are eligible for will depend on whether or not your illness or injury is service-connected, what VA benefits you qualify to receive, and the amount to treat your accident or injury.
Jim who is a 58-year veteran of Vietnam was diagnosed with permanent disabilities because of his two years of service. He does not have enough work space to be eligible for Social Security disability benefits but there is a VA Pension benefit, which offers cash and free medical care that is based on financial need. He wants to understand how a personal injury lawsuit could affect his eligibility to benefit from this benefit.
The answer is dependent on whether the settlement is a lump-sum or a structured one. Structured settlements require payments over a period of time, rather than one single payment. The amount that defendant pays is calculated to offset existing VA benefits. However, a lump sum settlement will probably affect existing benefits since the VA considers it as income and will increase it. In either case, if excess assets are left after the twelve-month period when the settlement is annualized, Jim could be eligible for a new Pension benefit but only if his assets fall below a threshold that the VA accepts as establishing financial need.
Do I have to hire an attorney?
Many spouses, service members, and former spouses have questions about VA disability payments and their impact on money issues during divorce. Some people believe, among other things that the Department of Veterans Affairs compensation payments can be split as military retirements in divorce cases, or that they're "off limits" when calculating child support and Alimony. These misconceptions can lead to financial mistakes that have serious consequences.
While it is possible to make an initial claim for disability benefits on your own, the majority of disabled veterans disability attorneys get the help of a qualified lawyer. A veteran's disability lawyer can look over your medical records and gather the evidence needed to prove your case in front of the VA. The lawyer can also file any appeals you might require to receive the benefits you deserve.
Most VA disability lawyers don't charge for consultations. The government also pays the lawyer directly from your award of retroactive benefits. This is one of the benefits of the Equal Access to Justice Act. The percentage of retroactive past-due benefits that your lawyer will receive should be clearly outlined in your fee agreement. For example an agreement on fees could specify that the government will pay the attorney up to 20% of retroactive benefits or provide. Any additional amounts are your obligation.
Can I Garnish My VA Benefits?
When a disabled veteran receives compensation from the VA, it comes in the form of monthly payments. The purpose of the payments is to help offset the effects of disability, illness or injuries incurred during or aggravated by the veteran's military service. Like other income sources, veterans disability lawsuits disability benefits can be subject to garnishment.
Garnishment permits a court order that an employer or government agency stop money from the wages of an individual who owes a debt and send it directly to the creditor. In the event of a divorce the garnishment could be used for child or spousal support.
There are certain situations where the benefits of a veteran could be encashable. The most common scenario is that of a veteran who has renounced his military retirement in order to receive disability compensation. In these situations, the amount of pension apportioned to disability pay can be garnished for family support obligations.
In other cases, a veteran’s benefits can also be garnished to cover medical expenses or federal student loans that are over due. In these instances the court might be able to directly to the VA to obtain the necessary information. It is vital for a disabled veteran to find a competent attorney to ensure that their disability benefits aren't being snatched away. 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 can be a major aid to veterans and their families, however they're not without their own set of challenges. For instance when a veteran is divorced and is awarded a VA disability settlement, they should know how this could affect the benefits they receive.
In this case, the main question is whether or not disability benefits are considered assets which can be divided in divorce. This question has been addressed in two ways. A Colorado court of appeals ruling decided that VA disability payments were not property and could not be divided this manner. The other way is by an U.S. Supreme Court ruling in Howell that ruled that garnishing the veteran's VA disability benefits to pay the payment of alimony is in 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. Certain states use different approaches. Colorado for instance, takes all income sources together to determine the amount needed to support a spouse. The state then adds disability benefits in order to take into account their tax-free status.
It is also important for veterans to understand how their disability compensation will be affected if they become divorced and how their spouses' ex-spouses could take advantage of their benefits. If they are aware of these issues, veterans can safeguard their benefits and avoid unintended consequences.
Jim's client, a 58-year-old man, is permanently disabled due to his military service. He receives a monthly pension from the Department of Veterans Affairs.
He wants to know if a jury award will affect his VA benefits. The answer is not. But it will have an impact on the other sources of income he has.
Can I Receive Compensation for an Accident?
If you've been in the military and are permanently disabled because of injuries or illnesses, you may be eligible for a veterans disability settlement. This settlement can help compensate you for medical expenses, lost income and other expenses that resulted from your illness or injury. The type of settlement that you are eligible for will depend on whether or not your illness or injury is service-connected, what VA benefits you qualify to receive, and the amount to treat your accident or injury.
Jim who is a 58-year veteran of Vietnam was diagnosed with permanent disabilities because of his two years of service. He does not have enough work space to be eligible for Social Security disability benefits but there is a VA Pension benefit, which offers cash and free medical care that is based on financial need. He wants to understand how a personal injury lawsuit could affect his eligibility to benefit from this benefit.
The answer is dependent on whether the settlement is a lump-sum or a structured one. Structured settlements require payments over a period of time, rather than one single payment. The amount that defendant pays is calculated to offset existing VA benefits. However, a lump sum settlement will probably affect existing benefits since the VA considers it as income and will increase it. In either case, if excess assets are left after the twelve-month period when the settlement is annualized, Jim could be eligible for a new Pension benefit but only if his assets fall below a threshold that the VA accepts as establishing financial need.
Do I have to hire an attorney?
Many spouses, service members, and former spouses have questions about VA disability payments and their impact on money issues during divorce. Some people believe, among other things that the Department of Veterans Affairs compensation payments can be split as military retirements in divorce cases, or that they're "off limits" when calculating child support and Alimony. These misconceptions can lead to financial mistakes that have serious consequences.
While it is possible to make an initial claim for disability benefits on your own, the majority of disabled veterans disability attorneys get the help of a qualified lawyer. A veteran's disability lawyer can look over your medical records and gather the evidence needed to prove your case in front of the VA. The lawyer can also file any appeals you might require to receive the benefits you deserve.
Most VA disability lawyers don't charge for consultations. The government also pays the lawyer directly from your award of retroactive benefits. This is one of the benefits of the Equal Access to Justice Act. The percentage of retroactive past-due benefits that your lawyer will receive should be clearly outlined in your fee agreement. For example an agreement on fees could specify that the government will pay the attorney up to 20% of retroactive benefits or provide. Any additional amounts are your obligation.
Can I Garnish My VA Benefits?
When a disabled veteran receives compensation from the VA, it comes in the form of monthly payments. The purpose of the payments is to help offset the effects of disability, illness or injuries incurred during or aggravated by the veteran's military service. Like other income sources, veterans disability lawsuits disability benefits can be subject to garnishment.
Garnishment permits a court order that an employer or government agency stop money from the wages of an individual who owes a debt and send it directly to the creditor. In the event of a divorce the garnishment could be used for child or spousal support.
There are certain situations where the benefits of a veteran could be encashable. The most common scenario is that of a veteran who has renounced his military retirement in order to receive disability compensation. In these situations, the amount of pension apportioned to disability pay can be garnished for family support obligations.
In other cases, a veteran’s benefits can also be garnished to cover medical expenses or federal student loans that are over due. In these instances the court might be able to directly to the VA to obtain the necessary information. It is vital for a disabled veteran to find a competent attorney to ensure that their disability benefits aren't being snatched away. 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 can be a major aid to veterans and their families, however they're not without their own set of challenges. For instance when a veteran is divorced and is awarded a VA disability settlement, they should know how this could affect the benefits they receive.
In this case, the main question is whether or not disability benefits are considered assets which can be divided in divorce. This question has been addressed in two ways. A Colorado court of appeals ruling decided that VA disability payments were not property and could not be divided this manner. The other way is by an U.S. Supreme Court ruling in Howell that ruled that garnishing the veteran's VA disability benefits to pay the payment of alimony is in 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. Certain states use different approaches. Colorado for instance, takes all income sources together to determine the amount needed to support a spouse. The state then adds disability benefits in order to take into account their tax-free status.
It is also important for veterans to understand how their disability compensation will be affected if they become divorced and how their spouses' ex-spouses could take advantage of their benefits. If they are aware of these issues, veterans can safeguard their benefits and avoid unintended consequences.
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