Is VA Disability Considered Income for Child Support?
Many families grapple with unique questions about child support, especially when military benefits come into play. One common question for military families is whether VA disability is considered income for child support. The answer to this question requires an understanding of the federal statutes, state guidelines, and steps courts take when calculating monthly payments.
The circumstances surrounding VA disability can often cause uncertainty within family law proceedings, especially when determining child support obligations. Therefore, it’s important to consult an experienced family law attorney.
At Anderson Graham, LLC, we often encounter parents who depend on Veterans Affairs (VA) disability compensation to cover their daily expenses. We are here to support clients throughout Denver, Colorado, as well as the surrounding areas. In this blog, our attorneys provide an overview of what you should know about VA disability and child support.
VA Disability and Child Support
Some parents rely on VA disability benefits as a vital source of financial stability. These monthly payments are offered to veterans who have sustained injuries or illnesses related to their military service. However, regulations can differ based on where the family lives and what types of benefits the veteran receives..
Military service can involve different forms of compensation, and not every form is treated the same way when it comes to calculating child support. It's essential for divorcing to understand how courts analyze these payments so they can approach their cases with a stronger sense of clarity.
Federal Regulations vs. State Laws
Federal policy generally classifies VA disability benefits as tax-free payments. However, child support is usually decided in state courts and follows each state’s rules for determining parental financial responsibilities. Some states have guidelines that broadly define “gross income,” but some may not include certain types of veteran benefits.
In many situations, Colorado family law courts view recurring funds that improve a parent’s ability to provide for their child as part of that parent’s income. VA disability compensation often meets this standard, although specific exclusions can apply. The courts also look at the difference between disability compensation and other forms of veteran pay, such as retirement.
How Courts Calculate Child Support
Family law courts rely on state guidelines to determine a parent’s financial capacity to pay child support. The parent's income is typically a major factor since VA disability does not show up on typical W-2 forms.
However, despite its tax-free status, many courts in Colorado will view VA disability as part of a veteran’s earnings or resources. Some common factors the courts consider when calculating child support include the following:
Gross monthly income: This can include wages, VA disability, Social Security benefits, and more, depending on state law.
Number of children involved: Larger families often see bigger support orders because more children require a higher financial contribution.
Parenting time: The court typically considers the number of overnights a child spends with each parent. More parenting time often lowers the paying parent’s monthly amount.
Other child-related expenses: Items such as health insurance premiums and daycare can shift child support orders up or down.
When VA disability is considered part of a parent’s income, it raises the total earnings in the state’s formula. This often results in higher support amounts than a parent might expect if they believed their VA disability would be excluded altogether.
VA Apportionment for Child Support
VA apportionment comes into play if a veteran falls behind on child support payments or if the custodial parent is facing financial hardship. VA apportionment allows the Department of Veterans Affairs to withhold a portion of a veteran’s disability pay and send it directly to a spouse, child, or dependent parent.
If a custodial parent is struggling to receive payments, VA apportionment might be an avenue for relief. However, it’s important to understand that the VA typically won’t get involved unless a formal request for apportionment is made.
It's also important to note that the benefit does not always apply to every scenario. If you’re thinking of requesting apportionment, make sure you have the necessary documents and file a formal request for intervention.
Potential Exceptions and Special Circumstances for VA Disability
While VA disability is often considered when determining child support in Colorado, there are scenarios where VA disability might not be treated as standard income. Some benefits such as Special Monthly Compensation (SMC) are designed for more severe service-connected disabilities and the courts may factor SMC differently to acknowledge that these benefits address more acute needs.
Additionally, when veterans receive both VA disability and military retirement pay, retirees with a service-connected disability can opt for a disability waiver to boost the net sum they receive each month. This approach reduces the retirement portion and increases the tax-free disability portion of their disability pay.
However, it can still count as income in child support calculations depending on how the court interprets it.
How to Reach a Support Agreement
Many parents want to handle child support concerns with as little strain as possible. When both parents cooperate, they can often find a balanced solution that covers the child’s needs while respecting the veteran’s financial realities.
When special situations call for out-of-court support agreements or tailored arrangements, it's important to keep the following in mind:
Open communication about finances: Sharing pay details (including VA disability) helps both parties understand what resources are available.
Realistic projections of the child’s expenses: Detailing child-related costs can set the stage for a more accurate arrangement.
Flexibility when circumstances change: Allowing for revisions in the event the veteran’s disability rating changes or the child’s needs shift.
Written documentation: Putting the agreement in writing makes it official and can be presented to the court for approval.
A well-structured agreement often saves both parents the time and stress of returning to family law court later. However, it’s crucial to note that if the parents’ agreement falls below the state’s child support guidelines, the court might review it to confirm that the child’s best interests are upheld.
Understanding Family Law in Colorado
In Colorado, the courts aim to determine support agreements that reflect each parent’s total resources, including any applicable disability benefits. However, when a parent consistently avoids fulfilling support obligations, the courts can resort to measures such as contempt proceedings or license suspensions to enforce existing child support orders.
Child support enforcement can also involve VA disability benefits. If a parent fails to make court-ordered payments, the courts may permit VA apportionment, allowing the custodial parent to receive a portion of the veteran’s disability benefits directly from the Department of Veterans Affairs.
Consult Our Firm Today
If you’re unsure how VA disability is factored into child support income or need help resolving child support disagreements, reach out to an experienced family law attorney to discuss your case.
At Anderson Graham, LLC, we serve families throughout Denver, Colorado, as well as the surrounding areas including Lakewood South Denver, Washington Park, Glendale, Cherry Creek, Central Park, Park Hill, Union Station, and Wheat Ridge. We’ll work hard to help you pursue a solution that looks after your child’s well-being. Contact us today.