OFFE directs this warning to all legislators in all 50 states. HB2348 does not hold, or gain any ground towards the protection of veteran’s disability compensation, nor does the California bill, or the Indiana bill. States have NO jurisdiction or authority to dictate the Federal disposition of veteran’s disability benefits. The Secretary of the Department of Veterans Affairs and the U.S. Congress are the only two powers with authority over all decisions concerning veteran’s disability compensation. USC, Title 38, 5301, prohibits the Arizona legislation as a ‘legal or equitable process.’ Individual states tampering with the absolute protection of Federal law is not the answer. This issue can only be addressed at the Federal level.
OFFE supports efforts to prevent civil courts from using veterans' disability to
calculate spousal or child support orders. Arizona Bill HB2348 as well as our
other two states, falls short of this goal, consequently posing a serious threat
to many disabled veterans. Federal statues do not support using a veteran’s
disability for any other purpose than self maintenance.
Gene D. Simes, President VFVC Inc. / National Chairman
A new Arizona Bill, to be signed into law in the next couple of weeks, opens the door wider to further abuse of veteran’s disability compensation by civil courts.
Operation Firing For Effect had access to preliminary drafts of the law before it was introduced to the Arizona General Assembly. The wording at that time was very simple, focused, and left no room for misinterpretation concerning the total protection of veteran’s disability compensation as a divisible asset in a divorce or any other legal or equitable process.
The original version of the Bill made no mention of alimony or child support, the revised Bill does. This is contrary to the wording and intent of USC, Title 38, section 5301, which makes no exception for any attachment whatsoever.
HB 2348 does absolutely nothing to protect veteran’s benefits from calculation into a a divorce settlement. In fact, the bill only further locks-in the continued practice by civil court judges of basing support awards solely on a veteran’s disability compensation. State judges were already routinely making awards of support based solely on a veteran’s VA disability compensation. So nothing has changed. However, now this legally questionable practice will be reinforced by state legislation, HB 2348.
The problem this creates is; state judges’ issue divorce settlement orders which contain a number of calculated payment requirements under the single heading of ‘alimony’. These requirements can involve any number of outside creditors and services. For example; in addition to spousal and child support, a disabled veteran may be ordered to pay their ex-spouse’s attorney fee, car payments, mortgage payment, doctor bills, and so on. The end result is that not only has the veteran’s ex-spouse attached to the veteran’s disability benefits, so has their attorney, their car company, their mortgage company, and their doctor have attached to the benefits as well. This is a back-door attack on the federal laws created to protect veteran’s benefits from just such claims. The end result is veteran’s benefits are not protected at all. The only real solution to this problem is total and absolute failsafe protection of veterans’ benefits as stated by USC. Title 38, 5301. HB2348 does nothing for such protection. If you make an exception and open the door just a little, everybody and their brother will find a way to take advantage of the situation.
In our opinion, HB2348 is a meaningless piece of legislation which further damages the overall protection of veteran’s disability benefits from third party awards, and only adds to the confusion surrounding the issue. The veterans of this country have been sold out once more. The Arizona Bill appears below, you be the judge.
Jere Beery
OFFE Public Relations Director
veterans; disability benefits
DP |
Committee on Military Affairs and Public Safety |
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W/D |
Committee on Judiciary |
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DP |
Caucus and COW |
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X |
As Transmitted to the Governor |
HB 2348 prohibits the federal disability benefits of veterans from being awarded to anyone else aside from child and spousal support enforcement pursuant to federal law.
Pursuant to 38 United States Code Chapter 11, the United States provides compensation to any veteran for a disability resulting from personal injury suffered or disease contracted in the line of duty or for aggravation of any preexisting injury or disease in the active military service. The amount of the compensation is dependent on the veteran's disability rating, which ranges from ten percent disability to total disability. Disability compensation is subject to state withholdings in accordance with state laws enacted to enforce the legal obligation of individuals to provide child support and alimony.
Arizona Revised Statutes (A.R.S.) § 12-1539 allows plaintiffs, in certain cases, to have the property of defendants attached as security for satisfaction of any judgment which may be recovered, unless the defendants give security to pay such judgment. Pursuant to A.R.S. § 25-317, courts may make orders for the disposition of property or maintenance, which are enforceable by all remedies available including contempt.
· Specifies that federal disability benefits awarded to veterans for service-connected disabilities pursuant to federal law are:
Ø Exempt from the claim of creditors.
Ø Not subject to attachment, levy or seizure under any legal or equitable process.
Ø Prohibited from being awarded to any other person.
Ø Subject to child and spousal support enforcement pursuant to federal law.
· Prohibits a court, in making a disposition of property or determining or modifying spousal maintenance following a dissolution of a marriage, from:
Ø Considering any federal disability benefits award to a veteran for service-connected disabilities pursuant to federal law.
Ø Indemnifying the veteran's spouse or former spouse or awarding any other income or property of the veteran to the veteran's spouse or former spouse for any prejudgment or post judgment waiver or reduction in military retirement or retainer pay related to receipt of the disability benefits.
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Ø Forty-ninth Legislature
Ø Second Regular Session 2 April 15, 2010