VA Restricts Disability Benefit Apportionment
The Department of Veterans Affairs (VA) has introduced a new ruling regarding the apportionment of disability benefits. This change significantly restricts the instances in which monetary benefits can be divided between a veteran and their dependents. The revised policy aims to eliminate need-based apportionments to prevent discrepancies with state family court rulings.
Understanding VA Disability Benefit Apportionment
An apportionment occurs when the VA directly pays part of a beneficiary’s monetary benefits to their dependents. For a beneficiary to receive an apportionment, they must file a request using a specific claim form. Historically, need-based apportionments have posed challenges due to their complexity and the requirement for extensive information.
Limitations on Apportionments
The VA’s new policy will primarily disallow need-based apportionments for compensation, pension, and dependency and indemnity compensation (DIC) benefits. The exceptions to this rule include:
- Veterans who are incarcerated.
- Incompetent veterans institutionalized at government expense.
In cases where veterans are in federal penitentiaries or VA Medical Centers, dependents may still receive a portion of their benefits, provided they qualify.
Impact on Current Beneficiaries
Dependents receiving apportionments prior to the policy change will not be affected. The VA will maintain any existing apportionments. However, there will be no adjustments to current need-based apportionments after the ruling takes effect.
Effective Date of Changes
The new ruling will come into force on February 9, 2026. Veterans and surviving spouses interested in requesting exceptions should use VA Form 21-0788, titled “Information Regarding Apportionment of Beneficiary’s Award.” This form, along with others, can be accessed from the VA’s official website.
For further details, interested parties can find additional information in the Federal Register under rulemaking number 2026-00237.
