VA limits apportionment of disability benefits

Currently, in limited situations, VA may pay a portion of a beneficiary’s monetary benefits directly to the beneficiary’s dependent, referred to as an apportionment. VA has implemented a new ruling that will limit the circumstances in which compensation, pension, and dependency and indemnity compensation (DIC) benefits are apportioned and will stop making need-based apportionments going forward.

This change serves to avoid conflicts with awards granted by state family courts. State family courts are usually more familiar with family circumstances and therefore better suited to make decisions regarding financial matters.

Understanding apportionments

An apportionment is when VA pays a portion of monetary benefits directly to dependents, rather than to the Veteran or beneficiary. A beneficiary must specifically request an apportionment by submitting an apportionment claim.

Need-based apportionment claims are challenging for many reasons. These usually involve complex issues of family law. Additionally, claims for apportionment require a substantial amount of information, which is typically available to state courts, but not readily accessible by VA. This requires VA beneficiaries and dependents to be contacted multiple times by VA to gather this information and can be a lengthy process.

Because of their proximity, state courts have more expertise and authority in family law and therefore are better equipped to handle apportionment claims. VA apportionment decisions may conflict with the awards of better-situated state family courts which have the authority and expertise to make fully informed, accurate and economically appropriate awards.

Limitations on new apportionments

For these reasons, VA will no longer grant need-based apportionments of compensation, pension, and dependency and indemnity compensation (DIC) awards in most circumstances.

VA will continue to make apportionments where a Veteran or surviving spouse is incarcerated and where an incompetent Veteran without a fiduciary is institutionalized at government expense. For example, if a Veteran is incarcerated at a federal penitentiary on felony charges, or institutionalized at a VA Medical Center, a portion of their benefits can be paid directly to their dependents if they are eligible.

Current apportionments

Dependents who currently receive an apportionment will not be affected by these changes. VA will continue apportionments currently being paid; however, adjustments to current need-based apportionments will not be made.

These changes will go into effect on Feb. 9, 2026.

Additional Information

Eligible Veterans and surviving spouses who wish to request apportionments under the stated exceptions can do so using VA Form 21-0788, “Information Regarding Apportionment of Beneficiary’s Award.” VA forms are available at https://www.va.gov/find-forms.

The rulemaking can be viewed in the Federal Register under 2026-00237.