Divorce in general is a hard situation to go through. Adding the impact of a VA disability on top of that can make it an all more stressful process. When one or both military veterans are receiving VA benefits, a divorce in the middle of it can really make things complicated. Whether in the middle of divorce or adding VA Disability settlements on top of it, at Coskrey Law we understand. Our firm wants to help anyway that we can for you to protect your financial future, especially when military benefits are involved. Below, we explain how VA benefits can impact divorce settlements and what spouses should keep in mind.
Understanding VA Benefits
VA disability compensation (pay) offers a monthly tax-free payment to Veterans who got sick or injured while serving in the military and to Veterans whose service made an existing condition worse. You may qualify for VA disability benefits for physical conditions (like a chronic illness or injury) and mental health conditions (like PTSD) that developed before, during, or after service. Find out how to apply for and manage the Veterans disability benefits you’ve earned.
IS VA Disability Benefits Considered Marital Property?
An important thought that many wonder is if VA Disability benefits are connected with their marital property. The answer is more than likely no. According to federal law, specifically, the Uniformed Services Former Spouses’ Protection Act (USFSPA) and subsequent Supreme Court rulings, VA disability compensation is not divisible as marital property during divorce proceedings. This essentially means the court cannot allocate money to the other spouse for a VA Benefits portion in a property division.
However that doesn’t mean these VA Benefits are totally off the table when it comes to divorce settlements.
VA Disability and Spousal Support
While not available for property division, VA Disability payments can be considered when calculating alimony or child support. The court will tend to consider all of the spouses’ sources of income when needing support. So when a person’s large source of income comes for VA Disability pay, they will take all needs necessary to take this into consideration. While the benefits themselves are protected from direct division, it may still indirectly influence the outcome of a divorce settlement through support obligations.
Waiving Military Retirement for VA Disability Pay
When things seem to be complicated, things get even more complex when the spouse’s military retirement pay in exchange for VA disability compensation. This is common because VA compensation is tax-free and on the other hand military retirement is taxable.
This waiver could be a complicated step for both spouses because it could reduce the retirement pay available for the spouse. Courts have really gone back and forth with this when a spouse takes the decree this far. In Howell v. Howell (2017), the U.S. The Supreme Court ruled that state courts cannot order a veteran to reimburse a former spouse for a reduction in retirement benefits due to a VA waiver.
This overall ruling will limit the spouses ability to recover lost benefits of the retirement benefits they thought they would receive. It is important to think about VA waivers before even filing for a divorce.
Protecting Your Rights in Divorce
Whether the Veteran or the spouse of the Veteran, it is valuable to understand your rights for VA Divorce. Key considerations will include:
- Support Calculations
- Financial Disclosure
- Settlement Agreements
- Legal Representation
How we can Help
At Coskrey Law, we understand the importance of getting the right claims and benefits you need. We have extensive experience in the field of Divorce and VA Disability Claims and we are willing to help you every step of the way. We know the rules surrounding VA disability are different from typical divorce proceedings, and we are here to guide you through them. If you have questions about how Divorce and VA Benefits intertwine, contact us today!