How a Veterans Disability Settlement Can Affect a Divorce Case Jim's client, 58 years old, is permanently disabled as a result of his time in the military. He is able to receive a monthly pension from the Department of Veterans Affairs. He wants to know if the jury's verdict will impact his VA benefits. It will not. But it will have an impact on his other sources of income. Can I claim compensation in the event of an accident? If you've been in the military but are now permanently disabled as a result of injuries or illnesses, you could be eligible for a veterans disability settlement. This settlement will allow you to get compensation for medical bills, lost wages and other expenses resulting from your illness or injury. The type of settlement you can get depends on whether or not your condition is service-connected or not connected, what VA benefits you qualify for, and the amount your accident or injury will cost to treat. Jim, a 58-year veteran of the Vietnam war, was diagnosed as having permanent disabilities as a result of his two years of service. He does not have enough working space to qualify for Social Security disability benefits but there is a VA Pension benefit that offers cash and free medical care in accordance with financial need. He wants to know if a personal injury settlement would affect his eligibility to receive this benefit. The answer is dependent on whether the settlement is in the form of an unintentional lump sum or a structured settlement. Structured settlements require installments over time instead of one single payment. The amount that defendant pays is calculated to offset existing VA benefits. A lump sum payout is likely to affect any existing benefits because the VA considers it to be income and will annually calculate it. If Jim has extra assets after the settlement is annually adjusted the applicant can apply again to be eligible for the pension benefit. However the assets he has to be below a threshold the VA has set to establish financial necessity. Do I require an Attorney? Many service members, spouses, and former spouses have questions about VA disability benefits and their effect on financial issues in divorce. There are many other reasons, but some people think that the Department of Veterans Affairs' compensation payments are able to be divided as a military pension in divorce or are "off limits" in calculation of child support and alimony. These misconceptions can lead to serious financial errors. While it is possible to do an initial claim for disability benefits on your own, many disabled veterans benefit from the help of a qualified attorney. A disability attorney for veterans can look over your medical records and gather the evidence required to prove your case before the VA. The lawyer can also help to file any appeals that you need to get the benefits you're entitled. Moreover, most VA disability lawyers do not charge fees for consultations. Additionally, the lawyer will generally 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. Your fee agreement should clearly state the amount of retroactive benefits that will be paid to your lawyer. A fee agreement could stipulate that, for instance, the government will pay the attorney 20 percent of retroactive benefits. Any additional amounts are your responsibility. Can I Garnish My VA Benefits? When a disabled veteran receives compensation from the VA it is in the form of monthly payments. The funds are meant to help offset the impact of injuries, illnesses or disabilities that were sustained or aggravated during a veteran's time of service. The benefits for veterans' disability are subject to garnishment, as is any other income. Garnishment lets a court order that an employer or government agency stop cash from the pay of an individual who owes a debt and send it directly to a creditor. In the event of a divorce garnishment can be used for child or spousal maintenance. There are a few circumstances where a veteran's disability benefits could be repaid. Most often, it is the case of a veteran who waived his military retirement to receive disability compensation. In these cases the part of pension that is devoted to disability compensation can be garnished to cover the obligations of family support. In other circumstances, veteran's benefits could be seized in order to pay medical expenses or federal student loans that are over due. In these situations, a court can go directly to the VA for the information they require. It is essential for a disabled veteran to retain a knowledgeable lawyer to ensure that their disability benefits are not removed. This can help them avoid being forced to rely on payday loans and private loans. lenders. Can I Represent Myself in a Divorce Case? VA disability settlements are a tremendous aid to veterans and their families. However, they come with their own set of complications. For instance in the event that a veteran gets divorced and receives a VA disability settlement, they must be aware of how this could affect their benefits. In this regard the most important question is whether disability payments are considered to be assets that can be split in a divorce. This issue has been settled in a variety of ways. One is through a Colorado court of appeals decision, which found that VA disability payments are not property and can't be divided as such. Another method is an U.S. Supreme Court ruling in Howell which held that garnishing the veteran's VA disability benefits to pay an alimony payment is a violation of the Uniformed Services Former Spouses Protection Act (USFSPA). Another concern that is related to this issue is how disability benefits are interpreted to determine child maintenance and support. Both the USFSPA and the Supreme Court, prohibit states from utilizing disability benefits as income. However, some states have adopted a different approach. For instance, Colorado adds up all sources of income to determine the amount in support a spouse will need and then adds disability benefits to take into account that they are tax free. It is also crucial that veterans are aware of how divorce affects their disability benefits and how ex-spouses can garnish their compensation. If they are aware of these issues, veterans can safeguard their benefits and avoid unintended consequences.