Appellate court
A Supreme Court decision prohibits states from dividing VA disability payments. However, this does not preclude a state from ordering indemnity payments from a retiree who waives retired pay to receive VA disability after a decree of dissolution has issued. In the State of Michigan, an Appellate court has ruled that any offset or indemnity is in violation of the Federal intent of preserving value for the military member, and hence offsets or indemnities are not allowed. Quoting three paragraphs from the King decision,