In a Pennsylvania divorce, VA disability compensation cannot be divided as marital property. However, it does count as income when a court calculates support. Divorce can also reduce the extra amount the VA pays for dependents. Silverman, Tokarsky & Forman, L.L.C., handles support and alimony for Johnstown families when one spouse receives VA disability payments.
What Changes While You Are Separated?
Most VA benefits stay the same during a separation. If the veteran’s combined disability rating is 30% or higher, they keep the added amount for a spouse until the divorce is final. A spouse who lives apart from the veteran can also ask the VA to send part of the payment directly to them. This is called an apportionment.
Under Pennsylvania law, property acquired after the date of separation generally is not marital property. VA disability compensation is not marital property in either case.
What Ends After the Final Decree?
Once the divorce is final, several federal changes take effect that a Pennsylvania judge cannot change. Starting the following month:
- The added amount for a spouse stops
- The former spouse’s coverage under the Civilian Health and Medical Program of the Department of Veterans Affairs (CHAMPVA) ends
- Payments apportioned to the former spouse end, but payments apportioned to children can continue
- The children stay on the veteran’s award as dependents
Post-9/11 GI Bill benefits that the veteran transferred to a spouse or child are different. They remain in place after the divorce unless the veteran cancels the transfer, which the VA allows at any time.
How Investing VA Back Pay Can Affect Divorce
A lump-sum VA disability back payment generally keeps its protection after you receive it. If the money stays in a savings account you can access, it usually remains excluded from marital property.
However, that protection may not apply once the money is turned into another asset. For example, if you use the lump sum to buy a rental property during the marriage, that property may become marital property that can be divided in the divorce.
Does VA Pay Count Toward Pennsylvania Support?
Yes. Pennsylvania counts disability benefits from any source as income when calculating support. In Rose v. Rose, the U.S. Supreme Court confirmed that states can enforce child support orders even when a veteran’s income comes from VA disability payments. The Cambria County Domestic Relations Section in Ebensburg includes these payments when calculating support under Pennsylvania’s guidelines.
The VA Loan and the Marital Home
A VA home loan uses the veteran’s loan entitlement. If the former spouse keeps the house, the veteran’s entitlement usually stays in use until the loan is refinanced or paid off. A veteran who plans to buy another home with a VA loan should make sure the settlement includes a deadline for refinancing.
How to Report a Divorce to the VA
If the VA keeps paying the spouse amount after the divorce, those extra payments become a debt. The VA can collect the debt by reducing future payments. To avoid this:
- Remove Your Former Spouse Promptly: File VA Form 21-686c online soon after the divorce is final.
- Keep Your Children Listed: Removing a former spouse does not mean removing your children.
- Request a Waiver if You Already Owe a Debt: Financial hardship may support a request to waive the debt.
These debts can grow quickly, and the VA can begin reducing payments without going to court.
Protect Your VA Benefits During Divorce
Our firm handles both family law and VA benefits issues, so the lawyers on your support case understand how apportionment, back pay, and the spouse amount work together. We aim to give you clear numbers and a settlement that accounts for VA rules. Call (814) 536-8600 or contact us online to set up a consultation.
