What You Need to Know About Veterans Disability Settlement The VA program pays for disability based upon loss of earning ability. This program differs from workers' compensation plans. Jim received a lump sum settlement. The VA will annually increase the lump amount over the course of one year. This will reduce his Pension benefit. He will not be able to reapply for his Pension benefit after the annualized amount is returned to him. Compensation Veterans and their families could be eligible for compensation from the government for injuries they suffered during the military. These benefits can be in the form of a pension or disability payment. There are a few key points to be aware of when you are considering a personal injury lawsuit or settlement for disabled veterans. For example, if a disabled veteran receives an award in their lawsuit against the at-fault person who caused their injuries and they also have an VA disability compensation claim, the amount of the settlement or jury verdict can be taken from their VA payments. This kind of garnishment is subject to certain restrictions. First an application to the court must be filed for the apportionment. Only a small portion of the monthly salary is able to be garnished, typically between 20-50%. It is important to note that compensation is not based on the actual earnings of a veteran instead, it is based on a percentage. This means that the greater the disability rating of a veteran, the more they will be compensated. Family members of survivors of disabled veterans who die due to service-related illness or injuries are eligible for a special benefit called Dependency Indemnity Compensation (DIC). There are many misconceptions regarding the impact of veterans' pension benefits or disability payments, as well as other compensations from the Department of Veterans Affairs on the financial aspects of divorce. These misconceptions can cause a difficult divorce even more difficult for veterans and their families. Pension Veterans Disability Pension is a tax-free benefit that pays out to veterans with disabilities incurred or worsened during military service. The benefit is also accessible to spouses of those who have survived and children with dependents. Congress sets the pension rate that is based on disability level, severity of disability, and dependents. The VA has specific rules regarding how assets are evaluated to determine eligibility for the pension benefit. Generally speaking, the veteran's residence personal effects, personal belongings and a vehicle are not considered, and the remaining assets that are non-exempt for the veteran must be less than $80,000 to demonstrate financial need. It is common knowledge that courts are able to garnish VA disability payments to meet court-ordered child support or spousal maintenance obligations. It is important to note that this is not the case. The courts are only able to garnish a pensioner's pension in the event that they have waived their military retirement pay in order to get compensation for the disability. 38 U.S.C. (a) SS5301 (a) is the law that governs this. It is important to understand that this does not apply to CRSC or TDSC pay, since these programs are specifically designed to provide higher levels of income for disabled veterans. It is important to note that a personal injury settlement can affect their eligibility for aid and attendance. SSI If a veteran has no earned income and has permanent disabilities and is disabled, they may be eligible for Supplemental Security Income (SSI). This is a program based on need. A person must have a low income and assets to be eligible for SSI. Certain people are also eligible for a monthly pension benefit from the VA. The amount will depend on their service and wartime period as well as a disability rating. Most veterans are not qualified for both a pension and Compensation benefit at the same time. If a person has an existing pension and is receiving a disability payment from the VA, the VA will not pay an additional Supplemental Security Income benefit to that person. The VA is required to provide your monthly military retirement, CRDP or CRSC to the Social Security Administration (SSA). This almost always causes an increase in your SSI benefit. The SSA can also determine your SSI income based on the VA waiver benefits. If a veteran is required to pay support pursuant to an order from a judge the court can go directly to VA to levy the retirement benefits of the military. This can happen in divorce cases when the retiree waives his military retirement pay in exchange for VA disability benefits. The U.S. Supreme Court recently decided in the case of Howell that this practice was in violation of federal law. Medicaid Veterans with disabilities resulting from their service might be eligible for Medicare and Medicaid. He must prove he has completed the five-year look-back time. The applicant must also submit documents to prove his citizenship status. He cannot transfer assets without an appraisal of fair market value, but he can still keep his primary residence and one vehicle. He can keep up to $1500 in cash or the face amount of a life insurance policy. In divorce the judge can decide that the veteran's VA disability payments can be considered income in the context of calculation of post-divorce child custody and maintenance. This is due to numerous court rulings that have confirmed the right of family courts to count these payments as income for support calculations. These include decisions from Florida, Mississippi (Steiner v. Steiner), Wisconsin (In the case of Marriage of Wojcik), and other states. The amount of VA disability benefits is contingent on the severity of the service-connected illness. It is calculated based on a scale that ranks the severity of the condition. It can vary from 10 percent up to 100 percent and higher scores bringing the most money. Veterans may be eligible for additional compensation for aid and attendance costs or a special monthly payment, which is based not on a specific schedule, but rather the severity of their disability.