Divorce creates challenges, especially when one spouse receives military benefits. If you are a father going through a divorce, you may wonder whether VA disability benefits count as marital property. In Nebraska, these benefits remain protected from division, but they can still affect child support and alimony.
Are VA disability benefits considered marital property?
Federal law does not classify VA disability benefits as marital property. This means spouses cannot divide them in a divorce settlement. The Uniformed Services Former Spouses’ Protection Act (USFSPA) governs military retirement pay division but specifically excludes VA disability benefits. Nebraska courts follow federal guidelines, keeping these funds with the veteran.
How do VA benefits impact child support and alimony?
Even though VA disability benefits remain non-divisible, they can still affect financial obligations. Nebraska courts consider all income sources, including VA disability payments, when calculating child support and alimony. If a father receives these benefits, the court may include them in support calculations to ensure the child’s needs receive proper funding.
What happens if a father waives military retirement for VA benefits?
Some veterans waive a portion of their military retirement pay in exchange for tax-free VA disability compensation. In Nebraska, this decision can affect divorce settlements. Since retirement pay qualifies for division, replacing it with non-divisible disability benefits may lead to changes in spousal support or other financial arrangements. Courts may adjust support payments to prevent unfair financial burdens on the other parent.
Protecting your rights as a father
Understanding how VA benefits influence divorce and custody cases helps military fathers make informed decisions. While these benefits remain separate property, they still impact financial obligations. Reviewing Nebraska statutes and advocating for fair treatment in court can help protect both your rights and your child’s well-being.