Military retirement pay may be treated as community property and therefore divisible. However, VA disability compensation is non-divisible in the case of divorce, and VA disability compensation is not counted as taxable income by the federal government. A veteran by waiver may also receive anywhere from 10 percent to 100 percent of his or her retired pay in the form of disability pay. It would appear if you are divorced and he was approved for a service connected disability after (or before) the divorce, you would not be entitled to any amount of his monthly compensation.
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