Background
Penny and Greg Doolin divorced in 2018 pursuant to a marital settlement agreement that awarded Penny a share of Greg’s military pension. After the divorce, Greg elected to receive VA disability benefits, which reduced the disposable retired pay available for division. Penny sought an order directing Greg to pay her the same pension share from other sources. The circuit court granted Penny’s petition and denied Greg’s motion to modify maintenance.
Holding
The Fifth District reversed the order requiring Greg to compensate Penny for the pension reduction, finding it violated federal preemption principles under the Uniformed Services Former Spouses’ Protection Act. Federal law prohibits state courts from treating VA disability benefits as divisible marital property, and ordering a veteran to pay the equivalent from other assets impermissibly circumvents this prohibition. The court affirmed the denial of Greg’s motion to modify maintenance.
Key Takeaways
- Under federal law (10 U.S.C. § 1408), state courts may not divide VA disability benefits as marital property.
- An order requiring a veteran to pay an equivalent amount from other sources impermissibly circumvents the federal prohibition, even when styled as enforcement of an existing MSA.
- The court distinguished between impermissible division of disability benefits and permissible consideration of disability income for maintenance purposes.
Why It Matters
This decision addresses a recurring tension in military divorce cases where a veteran’s post-divorce election of disability benefits reduces the pension share available to the former spouse. The ruling reinforces that federal preemption bars indirect methods of dividing exempt disability pay.