The U.S. Department of Veterans Affairs (VA) has announced a new ruling that limits the circumstances under which disability benefits can be apportioned to dependents. Apportionment allows the VA to pay a portion of a beneficiary’s monetary benefits directly to their dependents. The VA will no longer grant need-based apportionments for compensation, pension, and dependency and indemnity compensation (DIC) awards, aiming to prevent conflicts with state family court decisions. State courts are often better equipped to handle family financial matters due to their expertise in family law.
Exceptions to this ruling include cases where a Veteran or surviving spouse is incarcerated or where an incompetent Veteran without a fiduciary is institutionalized at government expense. Current apportionments will remain unaffected, but no adjustments will be made to need-based apportionments. The changes will take effect on Feb. 9, 2026. Veterans and surviving spouses who qualify under the exceptions can request apportionments using VA Form 21-0788.