| Copyright (c) 2007 James Livesay | | | | the Colonel will receive a big tax benefit. VA disability |
| The second type of disability pay a member may | | | | compensation, unlike military retired pay, is tax-free! |
| receive is disability compensation from the Department | | | | Second, the VA disability compensation offers Colonel |
| of Veteran's Affairs ("VA disability compensation"). | | | | Jessup a unique opportunity to retaliate against the |
| Let's return to the example of Colonel Jessup, and | | | | former Mrs. Jessup. The USFSPA provides that the |
| flash back to his breakfast with the Navy Judge | | | | retired pay waived by Colonel Jessup in order to |
| Advocates. Again, Colonel Jessup is advising them: | | | | receive VA disability compensation is not divisible by |
| "You want to investigate me, roll the dice and take | | | | state courts or DFAS. Thus, once the Colonel waives |
| your chances. I eat breakfast 300 yards from 4000 | | | | $1,200 of his military retired pay in exchange for $1,200 |
| Cubans who are trained to kill me, so don't think for | | | | of VA disability compensation, DFAS will divide only |
| one second that you can come down here, flash a | | | | the remaining $300 of retired pay. |
| badge, and make me...." | | | | The former Mrs. Jessup will now receive only $150 per |
| Just then, one of the legs of Colonel Jessup's chair | | | | month, and Colonel Jessup will receive a total of $1,350 |
| snaps. However, Colonel Jessup's lightning-quick | | | | per month (his 50% of the remaining $300 retired pay, |
| reflexes enable him to reach out, grab the table, and | | | | plus the $1,200 VA disability compensation). |
| stop himself from falling. He is a bit embarrassed, but | | | | The harsh results for the former Mrs. Jessup |
| uninjured. | | | | described above--with her monthly allotment in each |
| The investigation into the adultery charge against | | | | example being reduced to only $150 per month from |
| Colonel Jessup proceeds, and the investigators find | | | | Colonel Jessups military retirement--could have been |
| incontrovertible evidence that the Colonel had indeed | | | | avoided with proper planning by her attorney. First, the |
| committed the crime. In order to avoid a court-martial, | | | | attorney could have negotiated a Property Settlement |
| Colonel Jessup agrees to quietly retire. | | | | Agreement (PSA) with Colonel Jessup, with a |
| Again, for the purposes of this example, assume | | | | provision that, in the event the Colonel received military |
| Colonel Jessup has an active duty base pay of $3,000 | | | | disability retired pay or VA disability compensation, he |
| per month; thus, with 20 years active duty service, the | | | | would pay 50% of such pay directly to her. Such a |
| Colonel's normal retired pay will be $1,500 per month | | | | PSA is enforceable under Virginia law. |
| ($3,000 x 20 years x 2.5%). | | | | Second, had Colonel Jessup refused to enter into a |
| However, as part of his processing out of the military, | | | | PSA containing such a provision, the former Mrs. |
| Colonel Jessup applies for VA disability compensation, | | | | Jessup and her attorney could simply have asked the |
| based on a number of chronic injuries he has endured | | | | divorce court to withhold jurisdiction to order Colonel |
| over the course of his storied military career. Colonel | | | | Jessup to pay his former wife spousal support based |
| Jessup enters the civilian world. | | | | on any change in the parties circumstances. Then, at |
| The former Mrs. Jessup's attorney makes sure that | | | | such time as the former Mrs. Jessup's share of her |
| DFAS receives the Virginia court order awarding her | | | | husband's retired pay was reduced by his accepting |
| 50% of Colonel Jessup's disposable retired pay. DFAS | | | | disability pay, the attorney could have asked the court |
| honors the order, and begins distributing Colonel | | | | to make up the difference by ordering the Colonel to |
| Jessup's military retirement, $750 to the Colonel and | | | | pay spousal support. |
| $750 to the former Mrs. Jessup. | | | | Conclusion: A proper understanding of the issues |
| Seven months after his retirement, Colonel Jessup's | | | | surrounding military disability retired pay and VA |
| application for VA disability compensation is approved. | | | | disability compensation is important in most military |
| For his chronic injuries, Colonel Jessup will be entitled to | | | | divorce cases. Every service member or spouse going |
| receive $1,200 per month in VA disability compensation, | | | | through such a divorce should consult an attorney |
| if he waives an equivalent amount of his military retired | | | | knowledgeable in such matters. |
| pay. | | | | Livesay & Myers, PC- Virginia Military Divorce |
| What is the benefit to Colonel Jessup of waiving | | | | Attorneys- Divorce lawyers experienced with military |
| $1,200 per month of his retired pay in exchange for | | | | retired pay, VA disability, SBP in Woodbridge, Stafford, |
| $1,200 per month in VA disability compensation? First, | | | | Spotsylvania, and Fredericksburg, Virginia. |