There are plenty of ways you chould achieve this. Unreal Engine 4 even comes with a built-in damage system for Actors. You could use that, or if it doesn’t suit your needs, you could make your own. Without knowing the specific implementations of your project, it’s hard to give any specific advice.
Given that you’ve got networking and some less than basic animations going on, it shouldn’t be too hard to do either of these things. That is, unless you’ve copied most of the things and not made much of it yourself. In which case, your game might a bit too ambitious. If that is the case, I’d advice you to start with something smaller and learn the basics first. The only thing anyone ever achieves by starting out with something too ambitious is frustrating themselves to the point of quitting and giving up game development.