Howell v. Howell

Pursuant to a divorce decree entered in 1991, Sandra Powell began receiving fifty percent of John Howell’s military retirement pay (MRP) when John retired from the Air Force. John later qualified for monthly, tax-exempt VA disability payments. A veteran who receives MRP cannot collect VA disability benefits unless the veteran waives an equivalent amount of MRP. John elected a VA waiver. Accordingly, monthly MRP payments to both John and Sandra were reduced. Sandra moved to enforce the decree’s division of MRP and also sought an arrearage amount equaling the reductions in her share of MRP after the VA waiver. John opposed the request, arguing that Ariz. Rev. Stat. 25-318.01 barred the family court from requiring him to indemnify Sandra for the reduction in her share of MRP. The family court granted Sandra’s motion. The Supreme Court affirmed, holding (1) federal law does not preempt the family court’s authority to order a retired veteran to indemnify an ex-spouse for a reduction in MRP caused by a post-decree waiver of MRP made to obtain disability benefits; and (2) section 25-318.01 does not prohibit the court from entering an indemnification order in these circumstances if the ex-spouse’s share of MRP vested as a property right before 2010. View "Howell v. Howell" on Justia Law