Question:
In the attached article regarding fact or fiction on VA benefits and divorce, paragraph 4a seems to imply distribution prohibited but paragraph 5a implies that the benefit can be used to determine alimony. Which is it? My wife told me today she is about to become my ex-wife.
Jim's Reply:
I'm sorry but there was no attachment. However, your topic is the single most frequently asked question I receive so I think I can respond.
In a nutshell, yes...your VA disability payments are considered income by almost every agency you'll run across. Many vets think that tax exempt means exempt from everything...nope.
VA disability benefits can't be garnished to satisfy a debt. However the family court can order that the VA disability income is included as income on the financial statement you'll be required to complete and that will be used to calculate who owes what to who.
No...your disability income is not 'protected' no matter what you read at some angry ex-husband's web site. If you try to hide the income you may be in contempt of court.
This is a pretty good article that explains all this in more detail.
Divorce happens. It happened to me. Twice. Accept some harsh realities and do your best to move on. Good luck.