Does VA Disability Count as Income for SC Child Support?

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Does VA Disability Count as Income for SC Child Support?

Does VA Disability Count as Income for SC Child Support?
If you’re a veteran receiving VA disability compensation and facing child support issues in South Carolina, you may wonder whether your disability benefits count as income for child support purposes. This is a common question, and the answer has significant implications for both paying and receiving parents.

The Bottom Line: VA Disability IS Income in South Carolina
South Carolina law is clear: VA disability benefits are considered income when calculating child support obligations. This applies regardless of your disability rating, even if you receive 100% disability compensation or Total Disability Individual Unemployability (TDIU) benefits.

The South Carolina Child Support Guidelines (Regulation 114-4720) explicitly list “Veterans’ benefits” as part of gross income for child support calculations, alongside other income sources such as:

Salaries and wages
Social Security benefits
Pensions and retirement benefits
Unemployment insurance benefits
Workers’ compensation benefits
Interest, dividends, and trust income

Why Courts Count VA Disability as Income
The legal foundation for counting VA disability benefits as income comes from the U.S. Supreme Court’s landmark decision in Rose v. Rose (481 U.S. 619, 1987). In this case, the Court held that VA disability benefits are intended to “provide reasonable and adequate compensation for disabled veterans and their families” (emphasis added).

The Court reasoned that VA disability compensation is designed to replace impaired earning capacity. If a veteran weren’t disabled, they would be earning regular income that could be used for child support. The disability benefits serve as a replacement for that lost income.

Important Distinction: Calculation vs. Collection
There’s a crucial difference between using VA benefits to calculate child support and actually collecting from those benefits:

For Calculating Support
VA disability compensation is fully counted as gross income. Since these benefits are tax-free, the entire amount is considered when determining your child support obligation.

For Collection/Garnishment
Generally, VA disability benefits are protected from garnishment by creditors. However, child support is a major exception to this protection. If you fail to pay court-ordered child support, two collection mechanisms exist:

1. State Court Enforcement: Traditional enforcement methods like contempt proceedings, driver’s license suspension, and wage garnishment (though direct garnishment of VA disability is limited)

2. VA Apportionment: The custodial parent can request that the VA redirect a portion of your disability benefits directly to them for child support

The VA Apportionment Process
VA apportionment is an administrative process where the Department of Veterans Affairs divides your benefits between you and your dependents. When considering an apportionment request for child support, the VA examines several factors:

Whether you have other sources of income
Your health condition and any special needs requiring additional income
The circumstances of your former spouse or children
The number of children involved

Typically, the VA may apportion between 20% and 50% of your disability compensation for child support. The VA aims to ensure you retain enough income to maintain a minimum standard of living while meeting your support obligations.

To request apportionment, the custodial parent must file VA Form 21-0788 (Information Regarding Apportionment of Beneficiary’s Award) with supporting documentation.

What VA Benefits Are NOT Counted
It’s important to note that South Carolina’s child support guidelines do not include certain types of public assistance as income:

Temporary Assistance to Needy Families (TANF)
Supplemental Security Income (SSI)
Food Stamps (SNAP)
General Assistance

Additionally, some specialized VA payments may receive different treatment. For instance, aid and attendance payments specifically for home health care and certain special medical compensation may be treated differently, though these situations require careful legal analysis.

Credit for Benefits Paid Directly to Children
South Carolina law provides an important protection for veterans: if your child receives Social Security disability benefits or other benefits based on your employment record, you’re entitled to a credit against your child support obligation for those amounts. This principle was established in Justice v. Scruggs, 332 S.E.2d 106 (S.C. Ct. App. 1985).

Modifying Child Support When You Become Disabled
If you become disabled after a child support order is entered, or if your disability rating changes significantly, this may constitute a “substantial change in circumstances” warranting a modification of your child support obligation.

To request a modification, you would need to file a motion with the family court demonstrating:

A significant change in your income or financial circumstances
That the change is likely to be ongoing (not temporary)
How your disability affects your earning capacity

Keep in mind that courts will still consider your VA disability compensation as income when calculating the modified support amount. However, if your disability severely limits your ability to work or earn additional income, this can be factored into the court’s determination.

Calculating Child Support with VA Disability Income
South Carolina uses the “Income Shares Model” for child support calculations. Here’s how it works when one or both parents receive VA disability:

1. Determine Gross Income: Each parent’s monthly gross income is calculated, including VA disability benefits

2. Apply Allowable Deductions: Certain deductions are allowed, such as other child support orders or alimony paid

3. Combine Incomes: Both parents’ adjusted gross incomes are combined

4. Find Basic Obligation: Using the South Carolina Child Support Guidelines Schedule, find the basic support obligation based on combined income and number of children

5. Add Adjustments: Add costs for health insurance, extraordinary medical expenses, and work-related childcare

6. Prorate by Income: Each parent’s share is calculated based on their percentage of the combined income

Because VA disability is tax-free, you don’t deduct taxes from this income when calculating gross income for child support purposes.

Special Considerations for Military Retirees
If you’re receiving both military retirement pay and VA disability compensation, special rules apply. Veterans must waive a portion of their military retirement to receive VA disability compensation (since you can’t “double-dip”).

In these situations, only the portion of VA disability that replaced retirement pay can be apportioned or considered for garnishment. The remainder of your disability benefits receives greater protection.

Practical Tips for Veterans Facing Child Support Issues
If You’re Paying Support:

Be proactive: Don’t wait for enforcement action if you’re having difficulty paying
File for modification promptly: If your circumstances change, file for a modification right away. South Carolina generally won’t modify support retroactively before you file
Keep documentation: Maintain records of all payments and communications about support
Inform the VA: Make sure the VA knows about your dependent children, as you may be entitled to additional benefits for them

If You’re Receiving Support:

Know your options: Understand both court enforcement and VA apportionment procedures
Document non-payment: Keep careful records of missed or late payments
Use the Child Support Enforcement Division: South Carolina DSS can help with enforcement
Consider apportionment: If traditional enforcement isn’t working, VA apportionment may be more effective

What About Disability from Other Sources?
While this article focuses on VA disability, other disability benefits are also generally considered income for child support purposes in South Carolina, including:

Social Security Disability Insurance (SSDI)
Long-term disability insurance payments
Workers’ compensation disability benefits
Private disability insurance benefits

The exception is Supplemental Security Income (SSI), which is a needs-based program and is not counted as income under South Carolina’s guidelines.

Common Misconceptions
Myth: “My VA disability can’t be touched for child support.”
Reality: While VA disability has protections against most creditors, child support is a major exception. Courts can and do consider it as income, and the VA can apportion it.

Myth: “If I only receive disability, I don’t have to pay child support.”
Reality: Even if VA disability is your sole source of income, you still have a child support obligation based on that income.

Myth: “My 100% disability rating means I’m exempt.”
Reality: The percentage of your disability rating doesn’t exempt you from child support. However, severe disabilities affecting your earning capacity can be considered when setting the amount.

Myth: “The VA will automatically know about my child support obligation.”
Reality: You must inform the VA about your dependents and any child support orders. Apportionment only happens when requested.

The Self-Support Reserve
South Carolina’s child support guidelines include a “self-support reserve” of $1,010.50 per month (as of 2024). This provision ensures that low-income parents retain enough income to maintain a minimum standard of living.
If your income falls within certain low-income thresholds, your child support obligation may be calculated using only your income (not combined with the other parent’s income) to protect this reserve. This can provide some relief for veterans with limited disability income.

Getting Legal Help
Child support cases involving VA disability benefits can be complex, involving both state family court procedures and federal VA regulations. If you’re facing child support issues as a veteran, consider consulting with a South Carolina family law attorney who understands:

VA disability benefits and federal protections
South Carolina child support guidelines and calculations
The interplay between military retirement, VA disability, and family support
Modification procedures and enforcement options

At Klok Law Firm LLC, we represent veterans and their families in child support matters throughout South Carolina. We understand the unique challenges veterans face and can help you navigate both the family court system and VA procedures.

Changes in the Law
Child support guidelines and VA regulations can change. South Carolina reviews its child support guidelines every four years to comply with federal requirements. The most recent update took effect in 2024, with changes including:

Updated child care expense thresholds
Increased self-support reserve amounts
Higher combined gross parental income figures
Other adjustments to comply with federal regulations

If you have an older child support order, it may be worth reviewing to ensure it complies with current guidelines.

Conclusion
For South Carolina veterans, VA disability benefits are treated as income for child support purposes, just like wages or other earnings. This reflects the principle that children should benefit from both parents’ financial resources, and that VA disability compensation is intended to support not just veterans, but their families as well.

Whether you’re paying or receiving child support, understanding how VA disability affects these obligations is crucial for protecting your rights and meeting your responsibilities. If your circumstances have changed, or if you’re facing enforcement action, don’t wait—seek legal guidance to understand your options.

Disclaimer: This blog post is for informational purposes only and does not constitute legal advice. Child support law is complex and fact-specific. For advice about your particular situation, please consult with a qualified South Carolina family law attorney.

By Suzanne Klok|2025-11-12T16:20:02+00:00December 15th, 2024|Child Support|Comments Off on Does VA Disability Count as Income for SC Child Support?

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Does VA Disability Count as Income for SC Child Support?
If you’re a veteran receiving VA disability compensation and facing child support issues in South Carolina, you may wonder whether your disability benefits count as income for child support purposes. This is a common question, and the answer has significant implications for both paying and receiving parents.

The Bottom Line: VA Disability IS Income in South Carolina
South Carolina law is clear: VA disability benefits are considered income when calculating child support obligations. This applies regardless of your disability rating, even if you receive 100% disability compensation or Total Disability Individual Unemployability (TDIU) benefits.

The South Carolina Child Support Guidelines (Regulation 114-4720) explicitly list “Veterans’ benefits” as part of gross income for child support calculations, alongside other income sources such as:

Salaries and wages
Social Security benefits
Pensions and retirement benefits
Unemployment insurance benefits
Workers’ compensation benefits
Interest, dividends, and trust income

Why Courts Count VA Disability as Income
The legal foundation for counting VA disability benefits as income comes from the U.S. Supreme Court’s landmark decision in Rose v. Rose (481 U.S. 619, 1987). In this case, the Court held that VA disability benefits are intended to “provide reasonable and adequate compensation for disabled veterans and their families” (emphasis added).

The Court reasoned that VA disability compensation is designed to replace impaired earning capacity. If a veteran weren’t disabled, they would be earning regular income that could be used for child support. The disability benefits serve as a replacement for that lost income.

Important Distinction: Calculation vs. Collection
There’s a crucial difference between using VA benefits to calculate child support and actually collecting from those benefits:

For Calculating Support
VA disability compensation is fully counted as gross income. Since these benefits are tax-free, the entire amount is considered when determining your child support obligation.

For Collection/Garnishment
Generally, VA disability benefits are protected from garnishment by creditors. However, child support is a major exception to this protection. If you fail to pay court-ordered child support, two collection mechanisms exist:

1. State Court Enforcement: Traditional enforcement methods like contempt proceedings, driver’s license suspension, and wage garnishment (though direct garnishment of VA disability is limited)

2. VA Apportionment: The custodial parent can request that the VA redirect a portion of your disability benefits directly to them for child support

The VA Apportionment Process
VA apportionment is an administrative process where the Department of Veterans Affairs divides your benefits between you and your dependents. When considering an apportionment request for child support, the VA examines several factors:

Whether you have other sources of income
Your health condition and any special needs requiring additional income
The circumstances of your former spouse or children
The number of children involved

Typically, the VA may apportion between 20% and 50% of your disability compensation for child support. The VA aims to ensure you retain enough income to maintain a minimum standard of living while meeting your support obligations.

To request apportionment, the custodial parent must file VA Form 21-0788 (Information Regarding Apportionment of Beneficiary’s Award) with supporting documentation.

What VA Benefits Are NOT Counted
It’s important to note that South Carolina’s child support guidelines do not include certain types of public assistance as income:

Temporary Assistance to Needy Families (TANF)
Supplemental Security Income (SSI)
Food Stamps (SNAP)
General Assistance

Additionally, some specialized VA payments may receive different treatment. For instance, aid and attendance payments specifically for home health care and certain special medical compensation may be treated differently, though these situations require careful legal analysis.

Credit for Benefits Paid Directly to Children
South Carolina law provides an important protection for veterans: if your child receives Social Security disability benefits or other benefits based on your employment record, you’re entitled to a credit against your child support obligation for those amounts. This principle was established in Justice v. Scruggs, 332 S.E.2d 106 (S.C. Ct. App. 1985).

Modifying Child Support When You Become Disabled
If you become disabled after a child support order is entered, or if your disability rating changes significantly, this may constitute a “substantial change in circumstances” warranting a modification of your child support obligation.

To request a modification, you would need to file a motion with the family court demonstrating:

A significant change in your income or financial circumstances
That the change is likely to be ongoing (not temporary)
How your disability affects your earning capacity

Keep in mind that courts will still consider your VA disability compensation as income when calculating the modified support amount. However, if your disability severely limits your ability to work or earn additional income, this can be factored into the court’s determination.

Calculating Child Support with VA Disability Income
South Carolina uses the “Income Shares Model” for child support calculations. Here’s how it works when one or both parents receive VA disability:

1. Determine Gross Income: Each parent’s monthly gross income is calculated, including VA disability benefits

2. Apply Allowable Deductions: Certain deductions are allowed, such as other child support orders or alimony paid

3. Combine Incomes: Both parents’ adjusted gross incomes are combined

4. Find Basic Obligation: Using the South Carolina Child Support Guidelines Schedule, find the basic support obligation based on combined income and number of children

5. Add Adjustments: Add costs for health insurance, extraordinary medical expenses, and work-related childcare

6. Prorate by Income: Each parent’s share is calculated based on their percentage of the combined income

Because VA disability is tax-free, you don’t deduct taxes from this income when calculating gross income for child support purposes.

Special Considerations for Military Retirees
If you’re receiving both military retirement pay and VA disability compensation, special rules apply. Veterans must waive a portion of their military retirement to receive VA disability compensation (since you can’t “double-dip”).

In these situations, only the portion of VA disability that replaced retirement pay can be apportioned or considered for garnishment. The remainder of your disability benefits receives greater protection.

Practical Tips for Veterans Facing Child Support Issues
If You’re Paying Support:

Be proactive: Don’t wait for enforcement action if you’re having difficulty paying
File for modification promptly: If your circumstances change, file for a modification right away. South Carolina generally won’t modify support retroactively before you file
Keep documentation: Maintain records of all payments and communications about support
Inform the VA: Make sure the VA knows about your dependent children, as you may be entitled to additional benefits for them

If You’re Receiving Support:

Know your options: Understand both court enforcement and VA apportionment procedures
Document non-payment: Keep careful records of missed or late payments
Use the Child Support Enforcement Division: South Carolina DSS can help with enforcement
Consider apportionment: If traditional enforcement isn’t working, VA apportionment may be more effective

What About Disability from Other Sources?
While this article focuses on VA disability, other disability benefits are also generally considered income for child support purposes in South Carolina, including:

Social Security Disability Insurance (SSDI)
Long-term disability insurance payments
Workers’ compensation disability benefits
Private disability insurance benefits

The exception is Supplemental Security Income (SSI), which is a needs-based program and is not counted as income under South Carolina’s guidelines.

Common Misconceptions
Myth: “My VA disability can’t be touched for child support.”
Reality: While VA disability has protections against most creditors, child support is a major exception. Courts can and do consider it as income, and the VA can apportion it.

Myth: “If I only receive disability, I don’t have to pay child support.”
Reality: Even if VA disability is your sole source of income, you still have a child support obligation based on that income.

Myth: “My 100% disability rating means I’m exempt.”
Reality: The percentage of your disability rating doesn’t exempt you from child support. However, severe disabilities affecting your earning capacity can be considered when setting the amount.

Myth: “The VA will automatically know about my child support obligation.”
Reality: You must inform the VA about your dependents and any child support orders. Apportionment only happens when requested.

The Self-Support Reserve
South Carolina’s child support guidelines include a “self-support reserve” of $1,010.50 per month (as of 2024). This provision ensures that low-income parents retain enough income to maintain a minimum standard of living.
If your income falls within certain low-income thresholds, your child support obligation may be calculated using only your income (not combined with the other parent’s income) to protect this reserve. This can provide some relief for veterans with limited disability income.

Getting Legal Help
Child support cases involving VA disability benefits can be complex, involving both state family court procedures and federal VA regulations. If you’re facing child support issues as a veteran, consider consulting with a South Carolina family law attorney who understands:

VA disability benefits and federal protections
South Carolina child support guidelines and calculations
The interplay between military retirement, VA disability, and family support
Modification procedures and enforcement options

At Klok Law Firm LLC, we represent veterans and their families in child support matters throughout South Carolina. We understand the unique challenges veterans face and can help you navigate both the family court system and VA procedures.

Changes in the Law
Child support guidelines and VA regulations can change. South Carolina reviews its child support guidelines every four years to comply with federal requirements. The most recent update took effect in 2024, with changes including:

Updated child care expense thresholds
Increased self-support reserve amounts
Higher combined gross parental income figures
Other adjustments to comply with federal regulations

If you have an older child support order, it may be worth reviewing to ensure it complies with current guidelines.

Conclusion
For South Carolina veterans, VA disability benefits are treated as income for child support purposes, just like wages or other earnings. This reflects the principle that children should benefit from both parents’ financial resources, and that VA disability compensation is intended to support not just veterans, but their families as well.

Whether you’re paying or receiving child support, understanding how VA disability affects these obligations is crucial for protecting your rights and meeting your responsibilities. If your circumstances have changed, or if you’re facing enforcement action, don’t wait—seek legal guidance to understand your options.

Disclaimer: This blog post is for informational purposes only and does not constitute legal advice. Child support law is complex and fact-specific. For advice about your particular situation, please consult with a qualified South Carolina family law attorney.