Photo by the U.S. Army
The Mississippi Supreme Court ruled that any military retirement pay that a veteran converts into disability benefits is exempt from alimony.
The court reversed a decision in a Lamar County divorce case, citing a U.S. Supreme Court ruling that federal law does not permit state court divorce decrees to divide the disability benefits. The court said federal law pre-empts state law.
In the 1989 California case, the U.S. Supreme Court found that a federal law divided only a veteran’s “disposable” retirement pay which is the net amount of money received each month.
Money the veteran chooses to convert into tax-exempt disability benefits as well as any taxes paid on the military pension are excluded from the figure.
According to Thai divorce law, assets acquired during marriage in the absence of a prenuptial agreement are community property of the marriage.
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