Military retirement pay and disability benefits provide crucial financial support for veterans and their families. However, when a question about unpaid child support arises, the parties might not be sure if these funds be garnished to fulfill a parent’s obligations. The answer is nuanced, depending on the type of benefit and the specific circumstances involved.

Under federal law, retirement pay issued to a former member of the armed forces is generally subject to garnishment for child support and spousal support obligations. The Uniformed Services Former Spouses’ Protection Act (USFSPA) allows state courts to treat military retirement pay as divisible property in divorce proceedings, meaning that it can be split among the parties in a divorce and diverted to a former spouse if a veteran does not comply with a family court directive. 

To garnish military retirement pay, a court order must be in place, directing the Defense Finance and Accounting Service (DFAS) to withhold a portion of the retirement pay to satisfy the child support obligation. The garnishment is typically limited to 50 percent of the retiree’s disposable earnings, which are defined as gross retirement pay minus any authorized deductions.

On the other hand, military disability benefits are generally protected from garnishment for child support. These benefits are considered compensation for injuries or illnesses sustained during military service and are typically exempt from division in divorce settlements. The rationale is that disability benefits are meant to compensate for a veteran’s reduced earning capacity and to provide for their medical needs, not to be treated as income accumulated by a married couple.

However, there are exceptions to this general rule. If a veteran has waived a portion of their military retirement pay in favor of disability benefits for tax reasons, the court may consider the waived amount as available income for child support purposes. In such cases, the garnishment might not directly target disability benefits but could instead adjust the amount of military retirement pay subject to garnishment.

Additionally, if a veteran is receiving both military retirement pay and disability benefits, and the retirement pay is insufficient to cover the child support obligation, a court may look into other sources of income, including the possibility of garnishing the retirement pay to the maximum allowable extent.

If you or your former partner receives military retirement pay or disability benefits in lieu of retirement pay and an issue has arisen regarding unpaid child support or alimony, it’s time to call the experienced Virginia family lawyers at Harding, Harding & Harding Attorneys at Law, PLC. To schedule a free consultation at our Virginia Beach, Chesapeake or Norfolk office, please call 757-499-2600 or contact us online.