Supreme Court's Refusal to Hear Oregon Case Leaves Veterans Affairs Benefits Eligible for Alimony

November 09, 2012

The U.S. Supreme Court has declined to hear the case of an Oregon man who was appealing the decision of a Linn County trial court that included his veterans' disability benefit payments as part of his income to calculate spousal support payments for the man's ex-wife.

The man, former Air Force reservist Peter Barclay, has been declared totally disabled by the Veterans Affairs Administration and by the Social Security Administration. He receives monthly disability benefit checks from both government agencies, with his VA benefits making up the bulk of his income. Following the 2010 split between Barclay and his wife of 20 years, the court ordered alimony payments for the former Mrs. Barclay congruent to her tenable financial state after being a homemaker through the duration of the couple's marriage.

The trial court that made the original alimony award for Claudia included Peter's VA benefits as part of his overall income and ordered payment of $1,000 per month on an indefinite basis. Peter's appeal comes not on the basis that a spousal support payment would be inequitable under the circumstances, just that his VA benefits should not be considered part of the equation, due in no small part to 38 USC Section 5301, the federal law governing the assignability of federal veterans' benefits.

Conflicting Views From Different Jurisdictions

Peter Barclay's contention that his VA benefits shouldn't be included in any spousal support obligations is certainly not out of left field. There are conflicting cases around the country on this issue, and even the two that made it all the way up to the Supreme Court have some contradictions. The existence of a federal law about VA benefits obviously designed to ensure that veterans are properly cared for (that isn't necessarily easy to interpret) only adds confusion to the issue.

The precedent on the issue of whether or not VA benefits will be considered when making alimony awards in the state of Oregon is ambiguous, and it is entirely possible that the guidelines will remain "fuzzy" until the nation's highest court makes a definitive determination. That being said, situations like this - and the myriad other issues that arise when a couple is involved in a contentious divorce - are why the Oregon State Bar Association recommends that parties have experienced counsel by their side during the process.

To learn more about spousal support/alimony, child support, property division or any of the other factors that go into a marital dissolution, speak with a skilled family law attorney in your area.

Article provided by The Law Office of Thomas M. Brasier
Visit us at www.brasierlaw.com