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 from the Department of Veterans Affairs. He wants to be aware of whether a verdict by a jury will impact his VA benefits. It won't. But it will have an impact on the other sources of income he has. Can I receive compensation in the event of an accident? If you've served in the military and are permanently disabled as a result of injuries or illnesses, you may be eligible for a veteran disability settlement. This settlement could help you receive compensation for your medical bills, lost wages and other expenses resulting from your illness or injury. The kind of settlement you are eligible for will depend on whether or not your illness or injury is service-connected, what VA benefits you qualify for, and the cost to treat your injury or accident. For example, Jim is a 58-year old veteran who was diagnosed with permanent disabilities following two years of service during the Vietnam War. Jim does not have enough space for work to qualify for Social Security Disability benefits, however, he does have the VA Pension which offers cash and medical treatment for free depending on the financial needs of his. He wants to be aware of how a personal injuries settlement could affect his eligibility to receive this benefit. The answer is contingent upon whether the settlement is a lump sum or a structured one. Structured settlements require the payment of over time instead of one payment. The amount that defendant pays is calculated to offset existing VA benefits. A lump sum payment will impact any existing VA benefits since the VA will annually calculate and consider it as income. In either case, if excess assets are left after the period of twelve months when the settlement is annualized, Jim could apply again for the pension benefit, but only if his assets fall below a threshold that the VA determines to be a financial need. Do I really need to hire an attorney? Many spouses, military personnel and former spouses have questions about VA disability benefits and their impact on financial issues in divorce. Some people think that the Department of Veterans Affairs' compensation payments can be split like a pension from a military service in divorce or are "off limits" when it comes to calculation of child support and alimony. These misconceptions can lead to serious financial errors. While it is possible to submit an initial claim for disability benefits on your own, many disabled veterans can benefit from the assistance of an experienced attorney. An experienced veteran's disability lawyer can review your medical records and gather all the necessary evidence to present a strong case to the VA. The lawyer can also help to submit any appeals you require to secure the benefits you're entitled to. Additionally, the majority of VA disability lawyers do not charge fees for consultations. Additionally that the lawyer will normally be paid by the government directly from your award of retroactive past-due benefits. This is an advantage of the Equal Access to Justice Act. The amount of retroactive past due benefits your lawyer will be paid should be clearly outlined in your fee agreement. For instance, a fee agreement can state that the government will pay the attorney up to 20% of the retroactive benefits or give. You are responsible for any additional costs. Can I Garnish My VA Benefits? The VA pays a monthly amount of compensation to disabled veterans. These payments are designed to alleviate some of the consequences of illnesses, disabilities or injuries sustained or aggravated by the veteran's military service. The benefits for veterans' disability are subject to garnishment, just like other incomes. Garnishment allows a court order that an employer or government agency withhold money from the pay of an individual who owes a debt and send it directly to a creditor. In the case of divorce, garnishment could be used to pay spousal support or child support. There are certain situations where the benefits of a veteran can be encashable. The most common situation involves a veteran who waived their military retirement in order to receive disability compensation. In these situations the pension portion that is allocated to disability compensation can be garnished to cover the obligations of family support. In other instances, a veteran's benefits could be garnished in order to pay medical expenses or federal student loans that are over due. In these cases the court may be able to the VA to obtain the necessary information. It is important for disabled veterans to find a competent attorney to ensure that their disability benefits aren't removed. This will prevent them from having to depend on private loans and payday lenders. Can I Represent Myself in a Divorce Case? VA disability settlements are an excellent help to veterans and their families. However, they come with specific complications. For instance, if a veteran gets divorced and receives a VA disability settlement, they should know what effect this will have on the benefits they receive. A major issue in this context is whether or not disability payments are considered to be divisible assets in a divorce. This issue has been addressed in a variety of ways. One way is by an Colorado court of appeals ruling that concluded that VA disability payments are not property, and therefore cannot be divided in that way. The U.S. Supreme Court ruled in Howell, that garnishing a veteran’s VA disability benefits for Alimony was against the USFSPA. Another concern related to this subject is how disability benefits are treated for purposes of child support and maintenance. The USFSPA and the Supreme Court both forbid states from counting disability benefits as income to be used for this purpose. However, certain states have adopted the opposite approach. Colorado is one example. It takes all income sources together to determine the amount required to support a spouse and then adds on disability payments in order to take into account their tax-free status. In the end, it is crucial for veterans to be aware of how their disability compensation will be affected if they get divorced and how their spouses' ex-spouses could take advantage of their benefits. By being knowledgeable about these issues, veterans can safeguard their benefits and avoid unwanted consequences.