Question:
My uncle who is a Army Viet Nam veteran, not a retiree, but receiving disability pay was just recently divorced, subject to pending asset settlement. The Illinois Judge has requested a copy of my uncle's disability records so that he can include that amount as an asset in the divorce. Is that legal to include disability pay as an asset income?
Jim's Reply:
VA disability pay is considered as income during divorce in every state. There are rumors that the income is protected somehow and those rumors are not true. To not report all income as required may be seen as contempt of court and there are often negative consequences for that. DDon't ever try to hide facts from the court. Your nest asset is your credibility and if you lose that, you're left with very little in front of the judge.