A Divorce Can Lead to Overpayment by the VA

While going through divorce, you may feel like your mind is racing, your head is spinning, and you have a never-ending list of things to do. This is normal, as you are learning how to navigate through life on your own again.

Even though it can be easy to get distracted during a divorce, there are certain tasks that you do not want to forget. If you are a servicemember or veteran, one of the main tasks you must do right after divorce is update your records to ensure that you do not receive overpayment by the United States Department of Veterans Affairs (VA).

How can a divorce lead to overpayment by the VA?

When you divorce, you are supposed to take the time to update important records and information. For example, many documents may have listed you as married and even contain your ex-spouse’s information. Therefore, it is crucial to ensure that everything is up to date and lists you as no longer married. If you fail to do this or continue to put it off, you may receive overpayment from the VA.

There are several different life events that may result in overpayment by the VA, but divorce is one of the most commonf the VA is not notified that you are no longer married, they may continue to pay you for your ex-spouse. When the VA finds out that you have been overpaid, you will owe that money back. It may take them several months or even years to find out that you are no longer married, but the longer that you put this off, the longer you will experience deductions to your monthly benefits from the VA.

What happens when the VA discovers that I am no longer married?

If you do not let the VA know that you are no longer married, they will likely discover this information from other federal sources. Then, they will send you a notice in the mail informing you that they found a discrepancy between your personal information and what they have on file. In the letter, you will also see how much money they plan to take from your monthly benefit, and for how long, to ensure that this debt is repaid. Depending on how long you have kept this information from the VA and how much you owe them, they could also decide to discontinue benefits.

How do I find out how much I owe the VA for overpayment?

Servicemembers and veterans who receive a letter in the mail stating that they owe the VA for overpayment can check their VA balance by telephone or logging into their online VA account.

• You can dial 1-800-827-0648 if you are in San Antonio or another location in the United States, or you can dial 1-612-713-6415 if you are deployed out of the country at this time. These phone numbers will direct you to the VA Debt Management Center.
• Or you can visit the gov website and either enter your login information or create an account to log in. You must be a veteran or servicemember to do this. A spouse or ex-spouse cannot check this information for you.

What happens if I refuse to pay the VA overpayment?

You do have the option to make payments to the VA to cover the overpayment made to you. However, if you do not, they will simply deduct from or stop your monthly payments until your debt is paid off. If you refuse to pay back these overpayments, there are other negative consequences that may occur, including:

• They may inform credit reporting agencies, which could result in a lower credit score
• They may add interest to the overpayments that you owe.
• They may take away your monthly VA benefits altogether.
• They may send your debt to the U.S. Treasury, which may lead to additional fees and interest.
• They may take other state and federal government payments being provided to you.
• They may send your account to a private collection agency.
• They may take from your Social Security benefits, tax refunds, paychecks, or retirement.

It is a legal requirement for the VA to alert the U.S. Treasury about your refusal to pay back the overpayments and amount of debt owed. Therefore, the VA will get their money back one way or another. In order to prevent this from happening, you must update your paperwork and information immediately following a divorce.

What if I updated my information and still received the notice of overpayment?

If you updated your information after the divorce and still received the notice of overpayment, you may need to appeal this notice. You will need to show proof that you informed the VA of your divorce and did not receive any overpayments. However, you only have 60 days to respond to the notice. If you fail to respond within 60 days, the VA will create an action plan on how they will recover the money. There is a possibility that you may be able to waive the overpayment, but you will need to do this within 30 days of receiving the notice. During this time, you will still receive the same monthly amount until a decision is made.

At Grable Grimshaw, PLLC, our San Antonio military divorce attorneys are not only committed to helping you during the divorce process, but also to ensuring that you complete every requirement for a thriving life after divorce. We work with you to ensure that you complete all necessary paperwork, verify all your information, and update specific records to avoid any surprises in the future. If you are ready to hire a team that truly cares, please call our office or submit our contact form to schedule your case evaluation at our San Antonio office today.