| CARSON CITY, Nev. (AP) - The
Nevada Supreme Court has ruled that military veterans can be forced to pay
part of their disability benefits to former spouses - despite a federal law
to the contrary.
"Although states are precluded by federal law from treating disability benefits as community property, states are not precluded from applying state contract law, even when disability benefits are involved," the high court said Wednesday. The decision overturned the ruling of Family Court Judge Robert Gaston of Las Vegas, who said he was blocked by federal law from changing an agreement in a Las Vegas divorce decree between Maryann and Roland Shelton. © Copyright 2003 Rosen Law Firm. |
October 30, 2003
Nevada court overturns vet's divorce ruling
CARSON CITY, Nev. (AP) - The Nevada Supreme Court has ruled that military veterans can be forced to pay part of their disability benefits to former spouses - despite a federal law to the contrary.
"Although states are precluded by federal law from treating disability benefits as community property, states are not precluded from applying state contract law, even when disability benefits are involved," the high court said Wednesday.
The decision overturned the ruling of Family Court Judge Robert Gaston of Las Vegas, who said he was blocked by federal law from changing an agreement in a Las Vegas divorce decree between Maryann and Roland Shelton.
Under the agreement, Roland Shelton's military retirement and disability pay were both considered community property. The agreement awarded Maryann Shelton $577 a month from the retirement pay. Roland Shelton got $500 of the pension and $174 in disability, based on his 10 percent disability.
Two years later, a re-evalution gave Roland Shelton 100 percent disability. He waived his military retirement benefits for an equivalent amount of tax-exempt disability pay as federal law allows, and stopped the $577-a.m.onth payment to his ex-wife.
The U.S. Supreme Court in 1989 ruled that states weren't granted the authority to treat disability pay as community property. But the Nevada court said Shelton "cannot escape his contractual obligation by voluntarily choosing to forfeit his retirement pay."
The court also overturned Clark County District Judge Lisa Brown in a similar case involving Eva and Jose Olvera, who were divorced in 1979. Eva Olvera was to receive 41.2 percent of the gross retirement benefit, but Jose Olvera then waived his retirement pay to take tax-exempt disability pay and said he didn't have to pay Eva.
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