Thursday, May 2, 2013

Nevada Bill Would Bar Disability Pay from Divorce Split

Jim Fausone
Veteran Advocate

To help further protect their veterans, lawmakers in Nevada have put forth a bill that makes veteran disability pay untouchable in divorce proceedings.

The bill, AB271, was presented to members of the Assembly Judiciary Committee on Tuesday and specifies that during divorce settlements, judges cannot consider veteran disability pay when dividing assets.

Supporters of the bill state that disability pay is not taxable income and is given to the veteran to compensate them for their physical sacrifices during service. Under this view, the pay is not to be looked at as ‘earned income’ for divorce purposes, but instead as strictly a compensatory payout. 

Opponents of the bill state that disability income is intended for caregivers (potentially spouses) as well as veterans and that the pay should be considered as part of the couple’s overall financial situation.

Despite the fact that in the end no action was taken by the committee, no veterans testified in opposition to the bill.  This is an idea to keep an eye on in Nevada and maybe in other states.

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