Batcher v. Wilkie, No. 19-2116 (Fed. Cir. 2020)
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John served in the Army in the 1960s. In 1972, John and Roberta married. In 2001, they separated. In 2005, a New York court issued a Separation Judgment, requiring John to pay Roberta $300 per month in spousal maintenance. In 2006, the VA granted John service connection for various disabilities; he began receiving monthly compensation. The New York court held a hearing where both parties appeared with counsel with a proposed settlement. That Stipulation provided that no later than December 2006 John was to pay Roberta $7,000 for past and future maintenance, health insurance, and other obligations. John made the payment. In 2010, following John’s relocation, a Pennsylvania state court issued a Divorce Decree.
In 2008, Roberta had filed a VA claim for apportionment, 38 U.S.C. 5307, of John’s disability benefits. John objected, arguing only that the 2006 Stipulation “precluded” the claim. The VA denied Roberta’s claim, despite her demonstrated financial need, concluding she had “voluntarily renounced" maintenance or support. The Board of Veterans’ Appeals granted Roberta special apportionment from the 2008 date of her claim until the date of her 2010 divorce. The Veterans Court and Federal Circuit affirmed. A state court domestic relations separation agreement plays no role in VA’s determination of entitlement to special apportionment. John’s remedy lay in state court where he could sue for breach of contract. Special apportionment turns not on the veteran’s degree of support but on the dependent’s showing of hardship.
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