Update 2/16/09

Finally some states are protecting veterans from blood suckers.

Today Iowa State Legislators unanimously approved a Bill that will enhance Federal statutes designed to protect veterans’ disability compensation from attachment in divorce settlements.

Quote from Operation Fire For Effect

"Veterans’ service-connected disability compensation is intended to financially compensate a military veteran disabled in the line of duty. This compensation is not an asset, or property, and should not be used to calculate a veteran’s net worth. Disability compensation is awarded to a veteran that has lost some/all physical or mental ability to work, or maintain a daily routine. Veteran’s disability compensation is tax exempt and not classified as ‘income’ by the IRS. VA disability compensation is non-transferable and cannot be awarded to a third party under any legal process whatsoever. Even after the veteran has deposited these funds into their personal bank account they are federally protected from attachment or seizure. Disability compensation belongs solely to the disabled veteran that has suffered the disability."

In February of this year, Murphy was sentenced to 90 days for refusing to use his combat related VA disability compensation and Social Security Disability money to pay court ordered alimony. Circuit Court Judge, James M. Batzer sentenced Murphy to 90 days in the Manistee County Jail on contempt of court charges. Murphy was lead away from the court house in handcuffs like a common criminal. This appears to be against the law:

United States Code, Title 38, section 5301(a), which reads in part; ‘Payments of benefits due or to become due under any law administered by the Secretary shall not be assignable except to the extent specifically authorized by law, and such payments made to, or on account of, a beneficiary shall be exempt from taxation, shall be exempt from the claim of creditors, and shall not be liable to attachment, levy, or seizure by or under any legal or equitable process whatever, either before or after receipt by the beneficiary’.

Self-serving attorneys and judges have found ways to circumvent federal laws that prohibit third party awards of veteran’s benefits.

by Jere Beery
National Public Relations Director
Operation Firing For Effect

Last Friday, November 17, 2007, Vietnam combat disabled veteran Calvin Murphy was ordered by Michigan Circuit Court Judge, James Batzer to pay his ex-spouse $800 a month until she remarries from his disability compensation, and Murphy was also ordered to pay his ex-wife’s attorney fees amounting to an additional $3000. According to sworn testimony from the former Mrs. Murphy, she could no longer live with Mr. Murphy and his combat-induced Post Traumatic Stress Disorder. She simply did not want to live with him any more.

There were no claims of spousal abuse or infidelity made by Mrs. Murphy, and the Murphy’s have no minor children. At one point, attorney Connie Krusniak argued that Mrs. Murphy has suffered from Mr. Murphy’s PTSD bouts just as much as her husband has, and therefore she was entitle to a portion of Mr. Murphy’s VA disability compensation. Mr. Calvin Murphy was accused in open court of ‘romanticizing’ his combat military service in an attempt to avoid paying alimony. At another point in the testimony, Mr. Murphy’s attorney, Wendy Divozzo provided the court with certified receipts showing that Mrs. Murphy had a gambling habit and she had lost over $24,000 at one local casino since the Murphy’s had been separated.

Judge Batzer refused to accept the argument that Mr. Murphy’s VA disability compensation was protected by federal statue and he ordered Mr. Murphy to pay or go to jail. Calvin Murphy is appealing the decision. However, to avoid being jailed in the meantime, Murphy has to pay the court order until his Appeal is heard. So, even if he wins his Appeal in the future, he loses a great deal of his earned veteran’s disability benefits now.