by Jere Beery
Today Iowa State Legislators unanimously approved a Bill that will enhance Federal statutes designed to protect veterans’ disability compensation from attachment in divorce settlements.
Veterans’ service-connected disability compensation is intended to financially compensate a military veteran disabled in the line of duty. This compensation is not an asset, or property, and should not be used to calculate a veteran’s net worth. Disability compensation is awarded to a veteran that has lost some/all physical or mental ability to work, or maintain a daily routine. Veteran’s disability compensation is tax exempt and not classified as ‘income’ by the IRS.
VA disability compensation is non-transferable and cannot be awarded to a third party under any legal process whatsoever. Even after the veteran has deposited these funds into their personal bank account they are federally protected from attachment or seizure. Disability compensation belongs solely to the disabled veteran that has suffered the disability.
USC, Title 38, Section 5301 reads in part; Payments of benefits due or to become due under any law administered by the Secretary shall not be assignable except to the extent specifically authorized by law, and such payments made to, or on account of, a beneficiary shall be exempt from taxation, shall be exempt from the claim of creditors, and shall not be liable to attachment, levy, or seizure by or under any legal or equitable process whatever, either before or after receipt by the beneficiary.
Although United States Code, Title 38, Section 5301 is very clear in its wording and intent, civil court judges nationwide have routinely ignored the U.S. Code and calculated veterans’ disability compensation into divorce settlements as a divisible asset.
The Iowa effort was spearheaded by U.S. Army veteran Jerry Bohr of Ossian, Iowa. Bohr is Operation Firing For Effect Director of Operations for the state of Iowa. He is also employed as a service officer for the Iowa State Department of Veterans Affairs. In addition, Jerry Bohr is a member of the 5301 Club, a grassroots group devoted to the protection of disability benefits from third party awards in civil courts. To say Jerry Bohr is well versed in veterans’ affairs is an understatement.
Operation Firing For Effect is currently monitoring 38 individual divorce cases nationwide in which veterans’ disability compensation has been misused as a divisible asset in a divorce settlement. Although United States Code, Title 38, prohibits such attachment of veterans’ benefits by any legal process whatsoever, many civil court judges routinely circumvent the wording and intent of this Federal statute by factoring in veteran’s disability compensation for spousal support, alimony, and child support awards.
In an effort to straighten the Federal statute and stop obvious abuses by civil courts, Jerry Bohr conferred with a number of Iowa State Legislators (to include; Representatives Brian Quirk, John Beard, Mckinnley Bailey, and Senators Mary Jo Wilhelm and Daryl Beall) and explained the problem to them. Bohr’s efforts paid off earlier this week when Representative Brian Quirk authored and introduced a Bill to the state legislature for a vote. Quirk’s Bill was designed to stop this very questionable practice by civil court judges. And today the Iowa General Assembly unanimously passed House Bill 170. Brian Quirk’s Bill was modeled on legislation created by the West Virginia legislature early last year to combat the very same problem.
House File 170 – PASSED
A BILL FOR
An Act relating to the exclusion of veterans' disability compensation in calculating property disposition and support obligations.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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Section 1. Section 252B.7A, Code 2009, is amended by adding the following new subsection:
NEW SUBSECTION. 1A. Disability compensation received by a party from the United States department of veterans' affairs for service=related injuries shall not be considered income for the purposes of determining a parent's income under this section.
Sec.2. Section 598.11, Code 2009, is amended by adding the following new subsection:
NEW SUBSECTION. 4. The court shall not consider disability compensation received by a party from the United States department of veterans' affairs for service-related injuries in determining the amount of temporary support awarded under this section.
Sec.3. Section 598.13, Code 2009, is amended by adding the following new subsection:
NEW SUBSECTION. 3. Disability compensation received by a party from the United States department of veterans' affairs for service-related injuries shall not be considered income or property for the purposes of disclosing the financial status of such party.
Sec.4. Section 598.21, Code 2009, is amended by adding the following new subsection:
NEW SUBSECTION. 6A. VETERANS' DISABILITY COMPENSATION. Disability compensation received by a party from the United States department of veterans' affairs for service-related injuries shall not be considered property for the purposes of this section.
Sec.5. Section 598.21A, Code 2009, is amended by adding the following new subsection:
NEW SUBSECTION. 3. VETERANS' DISABILITY COMPENSATION. Disability compensation received by a party from the United States department of veterans' affairs for service-related injuries shall not be considered income for the purposes of this section.
Sec.6. Section 598.21B, subsection 2, paragraph b, Code 2009, is amended by adding the following new subparagraph:
NEW SUBPARAGRAPH.(4) For purposes of calculating a support obligation under this section, disability compensation received by a party from the United States department of veterans' affairs for service-related injuries shall not be considered income.
Sec.7. Section 598.21C, Code 2009, is amended by adding the following new subsection:
NEW SUBSECTION. 1A. VETERANS' DISABILITY COMPENSATION. Changes in the amount of disability compensation received by a party from the United States department of veterans' affairs for service=related injuries shall not be considered a substantial change in circumstances for the purposes of this section.
EXPLANATION
This bill excludes from the calculation of property disposition and support obligations under dissolution of marriage and child support determinations, disability compensation received by a party from the United States department of veterans' affairs for service-related injuries. United States department of veterans' affairs disability compensation, in general, is a benefit paid to a veteran due to injuries or diseases that were incurred in or aggravated by military service.
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For more information on this issue, visit; http://jerebeery.com/5301%20Club.htm
Jere Beery
OFFE National Public Relations Director
jerebeery@aol.com
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