The Department of Veterans Affairs has announced that it will stop most need-based apportionments, direct payments from a veteran’s benefits to family members, in early 2026. The move is part of a larger shift away from internal financial decision-making, transferring responsibility to state family courts, which the agency believes are better equipped to manage such disputes.
Apportionments were introduced to provide financial support for dependents during times of hardship. But according to the VA, the administrative process has become increasingly difficult to manage and frequently leads to delays and legal conflicts with court rulings. The change is set to take effect on February 9, 2026.
Shift from Internal Decisions to Family Court Authority
Under current VA policy, dependents can request apportionments if they believe they are entitled to a share of a veteran’s compensation, pension, or dependency and indemnity compensation. These payments are not automatic; each request must be reviewed and approved by the agency based on supporting documentation. According to the Department of Veterans Affairs, these cases are often complex and time-consuming, involving sensitive family situations and incomplete or conflicting financial records.
Much of the information needed to evaluate apportionment requests, such as income statements, custody arrangements, or spousal support agreements, is already available to state family courts but not easily accessible to the VA. As a result, both veterans and their dependents often face lengthy delays and repeated requests for paperwork, which the agency says frustrates families already experiencing financial hardship.
The VA has also faced difficulties reconciling its own apportionment decisions with existing family court rulings. According to officials, these overlaps have caused confusion over which decisions should take legal precedence. The agency now argues that family courts, which have the authority to issue enforceable orders, are better positioned to determine the appropriate financial arrangements between veterans and their dependents.
Exceptions and Protections for Current Recipients
The VA has made clear that apportionments will not disappear entirely. Specific exceptions will remain in effect under the new policy. According to the Department of Veterans Affairs, the agency will continue to approve apportionments when the veteran or surviving spouse is incarcerated or institutionalized at government expense and lacks a fiduciary. In these circumstances, the VA maintains federal oversight to prevent dependents from losing essential support.
For example, if a veteran is serving a felony sentence in a federal prison or is receiving long-term care at a VA Medical Center, eligible family members may still receive a portion of the benefits directly. The agency considers these situations uniquely suited to federal decision-making, given the absence of the beneficiary’s capacity to manage personal finances.
Families already receiving apportioned payments will also be protected under the new rules. According to the VA, those current arrangements will not be altered, but the agency will no longer make adjustments to existing apportionments based on changing financial need. This means the amount of support provided through these payments will remain fixed from 2026 onward.
Veterans and surviving spouses who believe they qualify under the remaining exceptions can still apply by submitting VA Form 21-0788, titled “Information Regarding Apportionment of Beneficiary’s Award,” available through the department’s website.
