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What's The Current Job Market For Veterans Disability Litigation Professionals Like?

2024.04.18
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 benefit from the Department of Veterans Affairs.

He wants to know if a verdict of a juror will impact his VA benefits. It won't. However, it will have an impact on the income sources of his other income sources.

Can I receive compensation for an accident?

If you've been in the military but are now permanently disabled due to injuries or illnesses, you may be eligible for a veterans disability settlement. This settlement will pay you for medical expenses, lost income and other costs that resulted from your illness or injury. The kind of settlement you will receive will depend on whether your injury or illness is related to service, what VA benefits you are eligible for, as well as the cost to treat your injury or accident.

For example, Jim is a 58-year veteran who was diagnosed with permanent disabilities from two years of service during the Vietnam War. He doesn't have enough space for work to qualify for Social Security Disability benefits, however, he is able to claim the VA Pension, which provides free medical treatment and cash dependent on the amount of money he needs. He would like to be aware of what the implications of a personal injury settlement can affect his ability to get this benefit.

The answer depends on if the settlement is a lump-sum or a structured one. Structured settlements are those that are made over a time frame rather than in a single payment and the amount paid by the defendant is calculated to offset any existing VA benefits. In contrast, a lump sum payout is likely to affect any existing benefits because the VA considers it as income and will increase it. In any event, if extra assets remain 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 less than a minimum threshold that the VA accepts as establishing financial need.

Do I have to hire an attorney?

Many service members, spouses and former spouses are confused about VA disability compensation and the impact it has on money issues in divorce cases. Among other things, some people believe that the Department of Veterans Affairs' compensation payments can be divided as a military pension in divorce or are "off limits" in the calculation of child support and Alimony. These misconceptions can lead to serious financial errors.

While it is possible to file an initial claim for disability benefits on your own, the majority of disabled veterans get the assistance of an experienced attorney. An experienced veteran's disability lawyer can examine your medical records and gather the necessary evidence to support your argument to the VA. The lawyer can also help to make any appeals you require to obtain the benefits you are entitled to.

Most VA disability lawyers don't charge for consultations. The government will also pay the lawyer directly from the payment of retroactive benefits. This is an advantage of the Equal Access to Justice Act. Your fee agreement should clearly define the amount of retroactive benefits to be paid to your lawyer. For example the fee agreement could stipulate that the government will pay the lawyer up to 20% of retroactive benefits or award. Any additional amounts are your the responsibility of the attorney.

Can I Garnish My VA Benefits?

When disabled veterans receive compensation from the VA, it comes in the form of monthly payments. These payments are designed to offset the effects of illnesses, injuries or disabilities that have been sustained or aggravated by a veteran's time of service. Like other income sources, veterans disability benefits can be subject to garnishment.

Garnishment permits a court order that an employer or government agency withhold money from the wages of a person who is in the process of paying the debt and pay it directly to the creditor. In the event of a divorce garnishment can be used for child or spousal maintenance.

There are situations where veterans' benefits could be garnished. The most common situation involves a veteran who waived their military retirement in order to claim disability compensation. In these situations the amount of pension that is attributed to disability benefits can be garnished to pay family support obligations.

In other cases, a veteran’s benefits can also be garnished in order to pay medical expenses or federal student loans that are past due. In these cases, a court may be able to go straight to the VA to obtain the necessary information. It is crucial for disabled veterans to find a competent lawyer to ensure that their disability benefits aren't garnished. This will prevent them from relying on payday lenders and private loans.

Can I Represent Myself in a Divorce Case?

VA disability settlements can be an enormous benefit for Veterans Disability veterans and their families, however they come with their own set of issues. If a person divorces and receives an VA settlement and is eligible, they should be aware of the impact this could have to their benefits.

In this context, the main question is whether disability benefits are considered assets that can be split in divorce. This question has been answered in two ways. A Colorado court of appeals ruling determined that VA disability payments were not property and could not be divided in this way. Another method is a U.S. Supreme Court ruling in Howell which held that garnishing a veteran's VA disability payments to pay for alimony is a violation of the Uniformed Services Former Spouses Protection Act (USFSPA).

Another concern with this issue is how disability benefits are treated to determine 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 a different approach. Colorado, for example, takes all income sources together to determine the amount required to provide for a spouse. Colorado then adds on disability payments to reflect their tax-free status.

In the end, it is crucial for veterans to understand how their disability compensation will be affected if they are divorced and how their spouses' ex-spouses could take advantage of their benefits. By being aware of these issues, vets can protect their compensation as well as avoid unintended consequences.

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