In May 2017, the U.S. Supreme Court unanimously ruled in favor of retired Air Force veteran John Howell in a family law case. The decision could make it harder for former military spouses to collect the money they expect to receive based on the terms of their divorce decrees. It raises issues that veterans and their spouses need to be aware of when considering divorce.
Background
John and Sandra Howell divorced in 1991. John was to retire soon and Sandra was to receive half of his retirement pay, according to the divorce decree. In 2005, John found out that he was eligible for disability benefits and chose to swap out $250 of his monthly retirement pay for $250 in disability pay, the advantage being that disability pay is not taxable while retirement pay is. There is no mention of whether John also considered the fact that it would reduce his payments to Sandra.
John’s decision cost Sandra $125 per month. Prior to the change, she was receiving $750 per month. She went to court and argued that John should continue paying her what he was paying before he chose to have his retirement reduced. The state court ruled in her favor.
Supreme Court Ruling
The Supreme Court ruled that the state court was wrong because, while state courts can divide military retirement benefits, they do not have the authority to divide disability benefits. That does not mean that states have no way to remedy similar situations. Planning ahead for the possibility that a veteran may waive retirement benefits in favor of disability payments, when deciding the terms of the divorce, can prevent such problems from arising. Or, in cases like the Howell’s the court could have handled things differently and recalculated the spousal support rather than ordering John to “reimburse” Sandra for the money she no longer receives.
To learn more about you rights as a veteran or military spouse, please talk to an experienced family law attorney.
