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Updated Feb 20, 2025

In This Section

 
This section contains the following topics:
  
Topic
Topic Name
1
2
3
4
5 Handling Notice That a Child in Receipt of an Apportionment Is Not a Child Per 38 CFR 3.57
6
7
 

 

1.  General Information on Adjusting Apportioned Awards

 

Introduction

 
This topic contains information on adjusting apportioned awards, including

Change Date

  
February 20, 2025

VII.iii.1.B.1.a.  Handling a Retroactive Increase in a Primary Beneficiary’s Award

 
Retroactive increases in a primary beneficiary’s award may be subject to apportionment only in exceptional cases, as dictated by the needs of the involved persons.
  
Note:  38 CFR 3.400(e) provides that with certain specific exceptions, the effective date of a grant or increase of an apportionment would be the first day of the month following the date the Department of Veterans Affairs (VA) received the apportionment claim or claim for increased apportionment.

VII.iii.1.B.1.b.  Circumstances Requiring Discontinuation of an Apportionment

 
An apportionment must be discontinued when the primary beneficiary’s award is
  • discontinued for any reason, or
  • reduced to a rate that
    • does not allow payment of a reasonable amount to any apportionee, or
    • would not (if the apportionment was granted under the provisions of 38 CFR 3.451) support a continuation of the apportionment without creating undue hardship on the primary beneficiary.
Discontinue the apportionment effective the same date as the effective date for discontinuance or reduction (whichever applies) of the primary beneficiary’s award.
 
Important:  Before discontinuing an apportionment because it would create undue hardship on the primary beneficiary, determine whether the apportionment may be continued under the provisions of 38 CFR 3.450.  
  • Continuation of the apportionment under the provisions of 38 CFR 3.450 would not be in order if VA awarded the current apportionment with the knowledge the Veteran was already providing a reasonable level of support to the dependents that are now apportionees.
  • Document the decision, whether favorable or unfavorable, on VA Form 21-441, Special Apportionment Decision.
References:  For more information on

VII.iii.1.B.1.c. Discontinuing an Apportionment

 
Discontinuing a primary beneficiary’s award in VBMS-A automatically discontinues any apportionment associated with that award.
  
If it becomes necessary to discontinue an apportionment without discontinuing the primary beneficiary’s award, see the VBMS Awards User Guide.

VII.iii.1.B.1.d.  Other Reasons and Instructions for Discontinuing an Apportionment

 
The table below contains
  • reasons for discontinuing an apportionment, and
  • references to instructions for discontinuing apportionments that are unique to the reason for discontinuation.
If the apportionment must be discontinued due to the …
Then process the discontinuation as instructed in …
death of the primary beneficiary
death of the apportionee
divorce (or annulment of marriage) of the spouse-apportionee
incarceration of the apportionee
discontinuation of a child-apportionee’s entitlement
marriage of a child-apportionee
discontinuation of a child-apportionee’s school attendance
entry of a child-apportionee on active duty
election of
  • Dependents’ Educational Assistance, or
  • education benefits under 38 U.S.C. 3311 (Fry Scholarship)
cessation of the dependency of a parent
residency of the apportionee with the primary beneficiary
unknown whereabouts of the apportionee
  • unknown whereabouts of a primary beneficiary that resides in a Treasury Department-listed country, or
  • apportionee’s residence in a Treasury Department-listed country
commencement of a primary beneficiary’s payment of child support for a child-apportionee
surviving child’s election to receive benefits in a two Veteran-parent case
surviving spouse’s
  • loss of entitlement to Section 306 or Old-Law Pension, or
  • election of current-law survivors pension over Section 306 or Old-Law Pension
surviving spouse’s remarriage
incarceration of the surviving spouse, who has been receiving pension
 

VII.iii.1.B.1.e.  General Instructions for Handling Notice of a Change in the Status of an Apportionee or Primary Beneficiary 

  
Follow the instructions in the table below after receiving notice of a change in the status of an apportionee or primary beneficiary that will require an adjustment of the apportionment and/or primary beneficiary’s award.
 
If the change was reported by the …
And …
Then …
primary beneficiary
only the primary beneficiary’s status has changed
 
Example:  A Veteran reports income that exceeds the maximum annual pension rate.
  • adjust the awards of the primary beneficiary and apportionee(s), and
  • provide contemporaneous notice of the action taken to both parties.
primary beneficiary
the apportionee’s status has reportedly changed
remove the apportionee from the primary beneficiary’s award but do not discontinue the apportionment without
  • sending a notice of proposed adverse action to the apportionee, and
  • allowing the apportionee 65 days to respond.
apportionee
the overall effect of discontinuing the apportionment and removing the apportionee from the primary beneficiary’s award will reduce the primary beneficiary’s award
  • discontinue the apportionment
  • send a notice of proposed adverse action to the primary beneficiary, and
  • adjust or discontinue (whichever applies) the primary beneficiary’s award after giving 65 days to respond.
apportionee
the overall effect of discontinuing the apportionment and removing the apportionee from the primary beneficiary’s award will increase the primary beneficiary’s award
  • discontinue the apportionment, and
  • provide contemporaneous notice of the action taken to both parties.
Note:  The requirements of 38 CFR 3.31 do not apply to the “increase” referenced in this row.
a third party
only the primary beneficiary’s status has reportedly changed
 
  • send a notice of proposed adverse action to the primary beneficiary
  • send a letter to the apportionee(s) explaining that VA may
    • reduce or discontinue the primary beneficiary’s award on a given date, and
    • make corresponding adjustments to the apportionee award(s), and
  • adjust the awards to the primary beneficiary and apportionee(s), if necessary, after giving the primary beneficiary 65 days to respond.
a third party
the apportionee’s status has reportedly changed
  • send a notice of proposed adverse action to the apportionee
  • send a notice of proposed adverse action to the primary beneficiary only if the overall effect of discontinuing the apportionment and removing the apportionee from the primary beneficiary’s award will reduce the primary beneficiary’s award, and
  • adjust the awards to the primary beneficiary and apportionee(s), if necessary, after giving them 65 days to respond.
 
Important:  In accordance with M21-1, Part IX, Subpart iii, 1.C.6.b, the discontinuation of a surviving spouse’s Section 306 or Old Law Pension does not deprive children not in the surviving spouse’s custody of their entitlement to the rate of payment they were receiving as apportionees.
 
References:  For more information on

VII.iii.1.B.1.f.  Handling Notice That a Primary Beneficiary and Apportionee Now Reside Together

  
Follow the instructions in the table below upon receipt of notice that a primary beneficiary and a dependent to whom VA is apportioning some or all of the primary beneficiary’s benefits under 38 CFR 3.450 or 3.451 now reside together.
  
Step
Action

1
Who notified VA that the primary beneficiary and the apportionee now reside together?
  • If the primary beneficiary notified VA, go to the next step.
  • If the apportionee notified VA, go to Step 5.
2
Advise the apportionee in a notice of proposed adverse action that VA intends to discontinue the apportionment based on notice that the apportionee and the primary beneficiary now reside together.
 
Reference:  For more information on preparing and issuing notice of a proposed adverse action, see M21-1, Part X, Subpart ii, 3.A.
3
Did the apportionee respond to the notice of proposed adverse action within 65 days?
  • If yes, go to the next step.
  • If no, go to Step 5.
4
Did the apportionee submit evidence (such as a lease agreement or utility bill) that shows they do not reside with the primary beneficiary?
  • If yes,
    • notify the primary beneficiary that the current apportionment will remain in place because the apportionee submitted evidence showing they do not reside with the primary beneficiary, and
    • disregard the remaining steps in this table.
  • If no, go to the next step.
5
Discontinue the apportionment effective the date in the LAST PAID DATE field on the CURRENT AND HISTORICAL AWARD INFORMATION page in VBMS, in accordance with 38 CFR 3.500(d)(1).
6
Notify both the primary beneficiary and the apportionee of the action taken in Step 5.
 
Reference:  For more information on preparing and issuing decision notices, see

VII.iii.1.B.1.g. Apportionments Based on Criteria That Are No Longer in Effect

 
M21-1, Part VII, Subpart iii, 1.A.3.e, lists the criteria that are currently in effect for determining the amount of an apportionment.  If VA granted an apportionment under criteria it has since revoked, adjust it to reflect the application of current criteria only when
  • adjustment of the apportionment is necessary for some other reason, or
  • one of the following individuals requests an adjustment of the apportionment:
    • primary beneficiary
    • primary beneficiary’s representative, or
    • apportionee.
Make the adjustment that reflects the application of current criteria effective the date in the LAST PAID DATE field on the CURRENT AND HISTORICAL AWARD INFORMATION page in VBMS.
 
Reference:  For more information on handling requests for adjustment of an apportionment, see M21-1, Part VII, Subpart iii, 1.B.1.h.

VII.iii.1.B.1.h.  Handling Requests for Adjustment of an Apportionmen

  
If an apportionee requests an increase in the amount of the apportionment,
If a primary beneficiary whose benefits VA is apportioning requests discontinuation of or a decrease in the amount of an apportionment, follow the instructions in the table below.
 
Important:  Treat the apportionee’s request for an increased apportionment as a request for application, if the request is missing a completed VA Form 21-0788, Information Regarding Apportionment of Beneficiary’s Award. 
 
Step
Action
1
Establish EP 130 under the primary beneficiary’s name.
2
Does the information/evidence the primary beneficiary provided indicate a discontinuation or reduction in the amount of the apportionment might be in order?
  • If yes, go to Step 5.
  • If no, go to the next step.
Notes: 
3
Notify the primary beneficiary that the evidence of record does not support an adjustment in the amount of the apportionment.
4
Clear the pending EP 130 and disregard the remaining steps in this table.
5
Establish EP 600 under the apportionee’s name.
6
Prepare a notice of proposed adverse action that proposes to reduce or discontinue the apportionment (whichever is deemed appropriate).  In the notice, ask the apportionee to complete and return VA Form 21-0788.
7
Go to the next step when either of the following occur:
  • the apportionee responds to the notice of proposed adverse action, or
  • 65 days pass after VA issues the notice of proposed adverse action.
Note:  Follow the instructions in M21-1, Part X, Subpart ii, 3.B.3 if the apportionee requests a hearing in response to the notice of proposed adverse action.
8
  • Make an administrative decision as to whether a reduction or discontinuation of the apportionment is in order.
  • Follow the instructions in M21-1, Part VII, Subpart iii, 1.A.3.g, for documenting the decision.
9
Is a reduction or discontinuation of the apportionment in order?
  • If yes, go to Step 12.
  • If no, go to the next step.
10
Notify both the apportionee and the primary beneficiary of the decision.
11
Clear the pending EP 130 and EP 600 and disregard the remaining steps in this table.
12
  • If a reduction in the amount of the apportionment is in order, go to the next step.
  • If discontinuation of the apportionment is in order, go to Step 14.
13
Follow the guidance in M21-1, Part VII, Subpart iii, 1.A.3.e to determine what the new amount of the apportionment should be.
14
Adjust (reduce or discontinue) the apportionment effective the date in the LAST PAID DATE field on the CURRENT AND HISTORICAL AWARD INFORMATION page in VBMS.
15
Notify both the apportionee and the primary beneficiary of the decision and the actions taken.
 
References:  For more information on preparing and issuing a

VII.iii.1.B.1.i.  Apportionments VA Suspended Because Payments Were Returned as Undeliverable 

  
An apportionment is automatically suspended when payments to the apportionee are returned as undeliverable.  Proceeds accrue in the apportionee’s account when the suspension takes effect. 
 
Upon receipt of notice that proceeds exist in an apportionee’s account for the reason stated in the preceding paragraph, regional offices (ROs) must attempt to locate the apportionee by 
If attempts to locate the apportionee are ultimately unsuccessful, ROs must 
  • discontinue the apportionment (according to the instructions in M21-1, Part VII, Subpart iii, 1.B.1.c) effective the date VA last paid the apportionee (the date in the LAST PAID DATE field on the CURRENT AND HISTORICAL AWARD INFORMATION page in VBMS)
  • follow the instructions in M21-1, Part VII, Subpart iii, 1.B.1.j for
    • determining whether the apportionee should remain on the primary beneficiary’s award, and
    • removing the apportionee from the primary’s award (if necessary), and
  • notify the apportionee and primary beneficiary of the actions taken. 

Important:  When discontinuing an apportionment that originated as a garnishment order (under the provisions of M21-1, Part VII, Subpart iii, 1.C.2.c), VA must continue to withhold benefits payable to the apportionee.  This is accomplished by entering the amount of the apportionment in the ADJUSTMENT AMOUNT field on the OTHER ADJUSTMENTS tab in VBMS-A. 

VII.iii.1.B.1.j. Removing a Former Apportionee From a Beneficiary’s Award Because the Former Apportionee’s Whereabouts Are Unknown

  
VA must remove from a beneficiary’s award 
  • a child whose whereabouts are unknown, and/or
  • the beneficiary’s spouse if
    • the beneficiary is a Veteran in receipt of pension, and
    • the whereabouts of the spouse are unknown. 
Exception:  Removal of a dependent from a beneficiary’s award is not required if the beneficiary is contributing to the dependent’s support.
  
Follow the instructions in the table below if 
  • the whereabouts of an apportionee are unknown, and
  • the apportionee is
    • a child, or
    • the spouse of a Veteran in receipt of pension.
Step
Action
1
Will the combined effect of removing the dependent and discontinuing the apportionment decrease the benefits payable to the beneficiary? 
  • If yes, go to Step 3.
  • If no, go to the next step.
2
  • Remove the dependent from the beneficiary’s award (without issuing a notice of proposed adverse action) effective the date VA last paid the beneficiary (the date in the LAST PAID DATE field on the CURRENT AND HISTORICAL AWARD INFORMATION page in VBMS).
  • Disregard the remaining steps in this table.
Note:  Take the actions described in this step concurrent with actions to discontinue the apportionment to the dependent.
3
Establish EP 600, using the current date as the date of claim.
4
Prepare a notice of proposed adverse action.  In the notice, 
  • inform the beneficiary that VA must remove the dependent from their award because the dependent’s whereabouts are unknown, and
  • ask the beneficiary to provide to VA
    • the dependent’s current address (physical or mailing), or
    • evidence that the beneficiary is contributing to the dependent’s support.
Reference:  For more information on issuing a notice of proposed adverse action, see M21-1, Part X, Subpart ii, 3.A.
5
Did the beneficiary respond to the notice of proposed adverse action within 65 days? 
  • If yes, go to Step 8.
  • If no, go to the next step. 
Note:  If the beneficiary requests a hearing in response to the notice of proposed adverse action, follow the instructions in M21-1, Part X, Subpart ii, 3.B.3.
6
Remove the dependent from the beneficiary’s award (under the pending EP 600) effective the date VA last paid the beneficiary (the date in the LAST PAID DATE field on the CURRENT AND HISTORICAL AWARD INFORMATION page in VBMS).
7
  • Notify the beneficiary of the action taken.
  • Disregard the remaining steps in this table.
8
Did the beneficiary provide the dependent’s current address or evidence that the beneficiary is contributing to the dependent’s support? 
  • If yes, go to the next step.
  • If no, return to Step 6.
9
Notify the beneficiary that VA will not remove the dependent from their award.
 
Notes: 
  • If the beneficiary provides the dependent’s current address, do not resume the apportionment without a request for resumption from the apportionee.
  • Follow the instructions in M21-1, Part VII, Subpart iii, 1.B.1.k, following receipt of a request for resumption of the apportionment.
10
Clear the pending EP 600.
 

VII.iii.1.B.1.k.  Requests for Resumption of an Apportionment That VA Suspended or Discontinued Because Payments Were Returned as Undeliverable

  
Follow the instructions in the table below following receipt of a request from an apportionee for resumption of an apportionment that was suspended because payments to the apportionee were returned as undeliverable.
  
If …
Then …
VA has not yet discontinued the apportionment (it is still in suspense)
resume the apportionment under EP 130 and release to the apportionee any proceeds in their account.
VA has discontinued the apportionment
  • ask the apportionee to complete a new VA Form 21-0788 (unless the apportionee submitted the form with the request)
  • take the actions described in M21-1, Part VII, Subpart iii, 1.A.2 and 3, and
  • follow the instructions in the table below if the apportionee remains entitled to an apportionment. 
If VA received the request for resumption of the apportionment …
Then …
within one year of the date VA notified the apportionee that VA had discontinued the apportionment
resume payment of the apportionment effective the date in the LAST PAID DATE field on the CURRENT AND HISTORICAL AWARD INFORMATION page in VBMS.
 
Note:  If, after resuming an apportionment, the apportionee reports they did not receive the proceeds VA returned to appropriations when it discontinued the apportionment, prepare a memorandum that asks the local finance activity to pay out the proceeds.
one year or more after the date VA notified the apportionee VA had discontinued the apportionment
resume payment of the apportionment effective the first of the month following the date VA received the request.
 
Exception:  Following receipt of a request for resumption of an apportionment that originated as a garnishment order (under the provisions of M21-1, Part VII, Subpart iii, 1.C.2.c) and was suspended because payments to the apportionee were returned as undeliverable, do not take the actions described in the second row of the table above if VA has discontinued the apportionment.  Instead, resume payment of the apportionment effective the date in the LAST PAID DATE field on the CURRENT AND HISTORICAL AWARD INFORMATION page in VBMS regardless of the date VA received the request.
 

 

2.  Discontinuing an Apportioned Award Due to Divorce or Annulment

 

Introduction

 
This topic contains information on discontinuing an apportionment due to divorce or annulment, including

Change Date

   April 9, 2020

VII.iii.1.B.2.a.  Effective Date of Discontinuation of an Apportionment to a Veteran’s Spouse

 
Discontinue the apportionment of a Veteran’s award to their spouse on the first day of the month following the month in which a divorce becomes final, or an annulment decree is issued.

VII.iii.1.B.2.b.  Processing a Notice of Divorce or Annulment From a Source Other Than the Apportionee

 
Following receipt of notice – from a source other than the spouse-apportionee – that the apportionee has divorced or obtained an annulment of the marriage to the Veteran,
  • send a notice of proposed adverse action to the Veteran that proposes to remove the spouse from their award, unless the Veteran provided the notice of divorce/annulment, and
  • do not discontinue the apportionment without
    • furnishing a notice of proposed adverse action that informs the apportionee of the right to introduce evidence showing why VA should not accept the notice of divorce/annulment as valid, and
    • allowing the apportionee 60 days to respond.
 Notes:
  • If the notice of divorce/annulment includes the following information, provide it in the notice of proposed adverse action:
    • court that processed the divorce/annulment
    • date of the divorce/annulment, and
    • court file number.
  • When the Veteran notifies VA of the divorce/annulment, remove the apportionee from the Veteran’s award but do not discontinue the apportionment until the apportionee has had an opportunity to respond to the notice of proposed adverse action referenced in the preceding paragraph.

  References:  For more information on

VII.iii.1.B.2.c.  Requesting Evidence to Confirm a Divorce or Annulment

 
When a spouse-apportionee responds to the notice of proposed adverse action referenced in M21-1, Part VII, Subpart iii, 1.B.2.b, by stating the marriage to the Veteran has not ended, follow the steps in the table below.
 
Step
Action
1
Is documentary evidence of the divorce/annulment of record?
2
Ask the Veteran to provide documentary evidence of the divorce/annulment.  Allow the Veteran 30 days to provide the evidence.
3
Did the Veteran provide documentary evidence of the divorce/annulment within 30 days?
4
Request a certified copy of documentary evidence of the divorce/annulment from the custodian of vital records in the state where the divorce/annulment reportedly took place.
 
Reference:  For addresses of where to send requests for vital records, see M21-1, Part III, Subpart i, 2.A.1.e.
5
  • If the custodian is unable to locate the requested evidence, go to the next step.
  • If the custodian provides the requested evidence,
6
  • Notify the spouse-apportionee that apportionment of the Veteran’s benefits will continue.
  • If the Veteran reported the divorce/annulment,
    • notify them that without documentary evidence of the divorce/annulment, VA must continue paying the apportionment, and
    • do not add the spouse back onto the Veteran’s award unless and until the Veteran asks VA to do so by submitting one of the forms listed in the bottom row of the table in M21-1, Part II, Subpart iii, 1.A.1.a.
 
Reference:  For more information on preparing decision notices, see

VII.iii.1.B.2.d.  Determining the Validity of a Divorce or Annulment Decree

 
When the validity of a divorce or annulment decree is questionable, request a legal opinion from District Counsel before taking any action to discontinue or adjust the primary beneficiary’s or apportionee’s award.
  
Notify both the primary beneficiary and apportionee of the pending action.
  
Reference:  For more information on requesting a legal opinion from District Counsel, see M21-1, Part VII, Subpart i, 1.A.3.e.

VII.iii.1.B.2.e.  Award Adjustments Based on Divorce or Annulment

 
Once the apportionee (and Veteran, when applicable) has had an opportunity to respond to the notice of proposed adverse action referenced in M21-1, Part VII, Subpart iii, 1.B.2.b, and a determination has been made that an adjustment based on divorce or annulment is required,
  • discontinue the apportionee’s award
  • adjust the primary beneficiary’s award in accordance with M21-1, Part VII, Subpart i, 1.C.4.b and c (unless this action was already taken because the Veteran reported the divorce/annulment), and
  • send a decision notice to each party.
Note:  Discontinue the apportionment to the former spouse, even if VA granted it for the former spouse and one or more children.  In the decision notice to the former spouse, inform them that
  • VA will consider the child(ren)’s entitlement to an apportionment following receipt of VA Form 21-0788, and
  • if VA receives VA Form 21-0788 within one year of the decision notice, VA may commence payment of the new apportionment (for the child(ren) only) from the same effective date as the former spouse’s apportionment was discontinued.
Reference:  For more information on award adjustments stemming from the discontinuation of a Veteran’s marriage to a spouse-apportionee, see VAOPGCPREC 74-1990.

 

3.  Adjusting or Discontinuing an Apportionment Due to Death

 

Introduction

 
This topic contains information on adjusting or discontinuing an apportionment due to death of the primary beneficiary or apportionee(s), including

Change Date

   February 20, 2025

VII.iii.1.B.3.a.  Adjusting an Apportioned Award Due to the Death of the Primary Beneficiary

 
Processing a first notice of death to stop a Veteran’s award simultaneously stops any running apportionment of the Veteran’s award, in accordance with M21-1, Part XI, Subpart i, 1.A.1.a.  Similarly, when VA stops a surviving spouse’s award because of death, any running apportionment of the surviving spouse’s award also stops.
  
Note:  Posthumous adjustments of apportionee awards do not require processing with an accompanying primary beneficiary award unless an adjustment in the primary beneficiary’s record is otherwise required.  This is because such adjustments may be impacted by one-time payment awards.
  
Reference:  For information on processing posthumous awards, see the VBMS Awards User Guide.

VII.iii.1.B.3.b.  Processing Notice of the Death of an Apportionee

 
Follow the steps in the table below following receipt of notice of the death of an apportionee.
 
Step
Action
1
Did the primary beneficiary notify VA of the death of the apportionee?
  • If yes,
    • complete the fields on the DEPENDENCY DECISION screen in VBMS to remove the deceased apportionee from the primary beneficiary’s award effective the first day following the month of death, and
    • go to the next step.
  • If no, go to Step 8.
2
Does the evidence of record include a death certificate for the apportionee?
  • If yes, go to Step 14.
  • If no, go to the next step.
Exception:  Go to Step 5 instead of the next step if VA has already asked the primary beneficiary (in Step 8) to provide the death certificate.
3
Ask the primary beneficiary to provide a death certificate.  Allow 30 days to respond.
4
Did the primary beneficiary provide a death certificate within the 30-day response period?
  • If yes, go to Step 14.
  • If no, go to the next step.
5
Request a certified copy of the death certificate from the custodian of vital records in the State where the apportionee reportedly died.
 
Reference:  For addresses of where to send requests for vital records, see M21-1, Part III, Subpart i, 2.A.1.e.
6
  • If the custodian is unable to locate a death certificate, go to the next step.
  • If the custodian provides the death certificate, go to Step 14.
7
  • Notify the primary beneficiary that without a death certificate, VA must continue the apportionment.
  • Disregard the remaining steps in this table.
Note:  Do not add the apportionee back onto the primary beneficiary’s award unless and until the Veteran asks VA to do so by submitting one of the forms listed in the bottom row of the table in M21-1, Part II, Subpart iii, 1.A.1.a.
8
Send a notice of proposed adverse action to the primary beneficiary that
  • proposes to remove the apportionee from their award effective the first day following the month of death, and
  • asks the primary beneficiary to provide a death certificate (if one is not already of record).
9
Did the primary beneficiary respond within 65 days of the date of the notice of proposed adverse action by stating the apportionee is still alive?
  • If yes, go to the next step.
  • If no,
    • complete the fields on the DEPENDENCY DECISION screen in VBMS to remove the deceased apportionee from the primary beneficiary’s award effective the first day following the month of death, and
    • return to Step 2.
10
Does the evidence of record include a death certificate for the apportionee?
  • If yes, go to Step 13.
  • If no,
    • request a certified copy of the death certificate from the custodian of vital records in the state where the apportionee reportedly died, and
    • go to the next step.
Reference:  For addresses of where to send requests for vital records, see M21-1, Part III, Subpart i, 2.A.1.e.
11
  • If the custodian is unable to locate a death certificate, go to the next step.
  • If the custodian provides the death certificate, go to Step 13.
12
  • Notify the primary beneficiary that VA will neither remove the apportionee from the beneficiary’s award nor discontinue the apportionment.
  • Disregard the remaining steps in this table.
13
Complete the fields on the DEPENDENCY DECISION screen in VBMS to remove the deceased apportionee from the primary beneficiary’s award effective the first day following the month of death.
14
Is the award to the deceased apportionee still running?
  • If yes, discontinue the deceased apportionee’s award effective the first day of the month of death.
  • If no (including suspended awards), ensure the deceased apportionee’s award was discontinued effective the earlier of the following:
    • date in the LAST PAID DATE field on the CURRENT AND HISTORICAL AWARD INFORMATION page in VBMS, or
    • first day of the month of death.
Reference:  For more information on discontinuing an apportionee’s award, see the VBMS Awards User Guide.
15
Were other apportionees receiving an apportionment under the same award as the deceased apportionee?
 
Reference:  For more information on adjusting a primary beneficiary’s award due to the death of an apportionee, see

VII.iii.1.B.3.c.  Example: Award Adjustments Following the Death of a Spouse-Apportionee

 
Situation:  The spouse-apportionee of a Veteran in receipt of disability compensation dies in October.  The Veteran has no other dependents.
  
Actions:
  • Discontinue the apportionment effective the first day of October.
  • Continue to pay the Veteran disability compensation at the rate for a Veteran and spouse through the end of the month of the spouse’s death.
  • Remove the spouse from the Veteran’s award effective the first day of November.
Reference:  For more information on adjusting a Veteran’s award due to the death of an apportionee, see M21-1, Part VII, Subpart iii, 1.B.3.b.

 

4.  Handling Notice That the Primary Beneficiary Began Paying Child Support for a Child-Apportionee

 

Introduction 

  
This topic contains instructions for handling notice that the primary beneficiary began paying child support for a child-apportionee, including

Change Date

  
February 20, 2025

VII.iii.1.B.4.a.  Determining Whether Discontinuation or Reduction of the Child’s Apportionment Is in Order

  
VA may not apportion benefits under 38 CFR 3.450 if the primary beneficiary is providing a reasonable level of support to the individual receiving or filing a claim for an apportionment.
 
Follow the steps in the table below following receipt of notice that a primary beneficiary is paying child support for a child-apportionee.
 
Step
Action
1
May VA continue the apportionment under the provisions of one of the other regulations cited in M21-1, Part VII, Subpart iii, 1.A.1.d?
  • If yes, go to the next step.
  • If no, go to Step 6.
Note:  If information required to make a decision is not of record, ask the primary beneficiary and/or apportionee’s custodian to provide it.
2
Does the evidence of record indicate VA should reduce the amount of the apportionment to the child-apportionee?
  • If yes, go to the next step.
  • If no, go to Step 11.
3
Did someone other than the child-apportionee’s custodian report the payment of child support?
  • If yes,
    • issue a notice of proposed adverse action to the child-apportionee’s custodian that proposes to reduce the apportionment to an amount determined in accordance with M21-1, Part VII, Subpart iii, 1.A.3.e, effective the date the primary beneficiary began paying the child support, and
    • go to the next step.
  • If no,
    • reduce the apportionment to an amount determined in accordance with M21-1, Part VII, Subpart iii, 1.A.3.e, effective the date the primary beneficiary began paying the child support, and
    • go to Step 11.
4
Did the child-apportionee’s custodian respond to the notice of proposed adverse action within 65 days?
  • If yes, go to the next step.
  • If no,
    • reduce the apportionment as proposed in the notice of proposed adverse action, and
    • go to Step 11.
5
Did the child-apportionee’s custodian provide evidence or information indicating VA should not reduce the amount of the apportionment?
  • If yes,
    • leave the apportionment running at its current rate, and
    • go to Step 11.
  • If no,
    • reduce the apportionment as proposed in the notice of proposed adverse action, and
    • go to Step 11.
6
Did someone other than the child-apportionee’s custodian report the payment of child support?
  • If yes,
    • issue a notice of proposed adverse action to the child-apportionee’s custodian that proposes to discontinue the apportionment effective the date the primary beneficiary began paying the child support, and
    • go to the next step.
  • If no, go to Step 10.
7
Did the child-apportionee’s custodian respond to the notice of proposed adverse action within 65 days?
  • If yes, go to the next step.
  • If no, go to Step 10.
8
Did the child-apportionee’s custodian provide evidence or information indicating VA should not discontinue the apportionment?
  • If yes, go to the next step.
  • If no, go to Step 10.
9
Does the information contained in M21-1, Part VII, Subpart iii, 1.A.3.e, indicate a reduction in the amount of the apportionment is in order?
  • If yes,
    • reduce the apportionment to the appropriate amount effective the date the primary beneficiary began paying the child support, and
    • go to Step 11.
  • If no,
    • continue the apportionment at the current rate, and
    • go to Step 11.
10
Discontinue the apportionment for the child effective the date the primary beneficiary began paying the child support.
11
Notify the primary beneficiary and apportionee’s custodian of the decision VA made.
 
Important:
  • Document decisions to continue, discontinue, or adjust the amount of an apportionment according to the instructions in M21-1, Part VII, Subpart iii, 1.A.3.g.
  • Although unlikely, if the evidence supports an increase in the amount of the apportionment to the child-apportionee, do not make such an adjustment without issuing and allowing the primary beneficiary to respond to a notice of proposed adverse action.
Reference:  For more information on issuing a notice of proposed adverse action, see M21-1, Part X, Subpart ii, 3.A.

VII.iii.1.B.4.b.  Actions to Take if Other Dependents Remain Entitled to an Apportionment

  
Follow the instructions in the table below when
  • VA must discontinue an apportionment for a child based on the instructions in M21-1, Part VII, Subpart iii, 1.B.4.a, and
  • other dependents (such as an estranged spouse) remain entitled to an apportionment of the primary beneficiary’s benefits.
  
Step
Action
1
Update the ALLOTMENT DECISION screen in VBMS to discontinue the apportionment to the child effective the date the primary beneficiary began paying child support.
2
Does the most recent apportionment decision specify how much of the primary beneficiary’s award is to be allotted to each apportionee?
  • If yes, go to Step 5.
  • If no, go to the next step.
3
Determine how much of the primary beneficiary’s award to apportion to the remaining apportionee(s) by following the instructions in M21-1, Part VII, Subpart iii, 1.A.3.e.
4
Document the decision made in Step 3 according to the instructions in M21-1, Part VII, Subpart iii, 1.A.3.g.
5
Update the ALLOTMENT DECISION screen with the new amount(s) allotted to the remaining apportionee(s).
6
Notify the primary beneficiary and the apportionee(s) of the actions taken.
 
Reference:  For more information on making award adjustments in VBMS, see the VBMS Awards User Guide.
 
 

 

5.  Handling Notice That a Child in Receipt of an Apportionment Is Not a Child Per 38 CFR 3.57

 

Introduction

 
This topic contains instructions for handling notice from a

Change Date

   April 9, 2020

VII.iii.1.B.5.a.  Handling Notice From a Primary Beneficiary Indicating a Child-Apportionee Is Not a Child Per 38 CFR 3.57

  
Follow the instructions in the table below following receipt of notice from a primary beneficiary indicating a child-apportionee cannot be recognized as a Veteran’s child under 38 CFR 3.57.
  
Example:  A male Veteran submits a statement indicating he did not father a child to whom VA is apportioning the Veteran’s benefits.
  
Step
Action
1
Establish EP 130 under the primary beneficiary’s name.
2
Is additional evidence required to confirm the child-apportionee cannot be recognized as a child for VA purposes?
  • If yes, go to the next step.
  • If no, go to Step 4.
Examples:
  • Additional evidence might be required if the only evidence of record is a statement from a male Veteran that he did not father a child-apportionee.
  • Additional evidence might not be required if the evidence of record includes the results of a paternity test.
3
Concurrent with the actions described in the next two steps, request additional evidence from the primary beneficiary.
4
Establish EP 600 under the child-apportionee’s name.
5
  • Send the child-apportionee or the child-apportionee’s custodian (whichever applies) notice of VA’s proposal to discontinue the child’s apportionment effective the first of the month following the month in which the due process period ends. (The due process period ends 60 days following the date of the notice.)
  • After 65 days (from the date of the notice) have passed, proceed to the next step.
6
Based on the evidence of record, may VA recognize the child-apportionee as a Veteran’s child under 38 CFR 3.57?
  • If yes, go to the next step.
  • If no, go to Step 9.
7
  • Notify the primary beneficiary and the child-apportionee or child-apportionee’s custodian (whichever applies) that VA will not discontinue the apportionment.
  • Notify the primary beneficiary that the child-apportionee will remain on their award.
8
  • Clear the EP 130 and EP 600.
  • Disregard the remaining steps in this table.
9
Discontinue the child-apportionee’s award under the EP 600, effective the date in the LAST PAID DATE field on the CURRENT AND HISTORICAL AWARD INFORMATION page in VBMS.
10
Remove the child-apportionee from the primary beneficiary’s award under the EP 130, effective the same date the apportionment was discontinued.
11
Notify the primary beneficiary and the child apportionee or child apportionee’s custodian (whichever applies) of the actions taken.
 
References:  For more information on

VII.iii.1.B.5.b.  Handling Notice From a Child-Apportionee or Custodian Indicating the Apportionee Is Not a Child Per 38 CFR 3.57

 
Follow the instructions in the table below following receipt of notice from a child-apportionee or child-apportionee’s custodian indicating the apportionee cannot be recognized as a Veteran’s child under 38 CFR 3.57.
  
Example:  A child-apportionee’s custodian, who is also the child-apportionee’s biological mother, submits a statement to VA in which she reports learning the child-apportionee was fathered by someone other than her Veteran-husband.
  
Step
Action
1
Establish EP 130 under the child-apportionee’s name.
2
Is additional evidence required to confirm the child apportionee cannot be recognized as a child for VA purposes?
  • If yes, go to the next step.
  • If no, go to Step 4.
Examples:
  • Additional evidence might be required if the only evidence of record is a statement from the child-apportionee’s custodian, such as the one referenced in the example that precedes this table.
  • Additional evidence might not be required if the evidence of record includes the results of a paternity test.
3
Concurrent with the action described in the next step, request additional evidence from the child-apportionee or the child-apportionee’s custodian (whichever applies).
4
Discontinue the child-apportionee’s award under the EP 130, effective the date in the LAST PAID DATE field on the CURRENT AND HISTORICAL AWARD INFORMATION page in VBMS.
5
Notify the child-apportionee or the child-apportionee’s custodian (whichever applies) of the action taken.
6
Establish EP 600 under the primary beneficiary’s name.
7
  • Send the primary beneficiary notice of VA’s proposal to remove the child from the primary beneficiary’s award effective the same date the child-apportionee’s award was discontinued.
  • Once 65 days (from the date of the notice) have passed, go to the next step.
8
Based on the evidence of record, may VA recognize the child-apportionee as a Veteran’s child under 38 CFR 3.57?
  • If yes,
    • leave the child on the primary beneficiary’s award, and
    • go to the next step.
  • If no, go to Step 13.
9
Establish EP 130 under the child-apportionee’s name.
10
Resume payment of the apportionment under EP 130 from the date it was discontinued in Step 4.
11
  • Notify the primary beneficiary and the child apportionee or child apportionee’s custodian (whichever applies) of the resumption of the apportionment.
  • Notify the primary beneficiary that the child-apportionee will remain on their award.
12
  • Clear the EP 600.
  • Disregard the remaining steps in this table.
13
Remove the child from the primary beneficiary’s award under EP 600, effective the same date the child-apportionee’s award was discontinued.
14
Notify the primary beneficiary of the action taken.
 
References:  For more information on

 

6.  Discontinuing an Apportionment for a Child That Goes on Active Duty

 
 

Change Date

  
 May 14, 2018

VII.iii.1.B.6.a.  Discontinuing an Apportionment for a Child That Goes on Active Duty 

  
Discontinue an apportionment for a child that goes on active duty, unless the child is in the custody of an estranged spouse.
 
When the apportionment ends, continue paying additional benefits for the child to the primary beneficiary until the child turns 18. 
 
Note:  For the purpose of this block, a “primary beneficiary” includes the fiduciary of a surviving child that is not in the custody of the surviving spouse whose benefits VA is apportioning for the child.
 
Reference:  For more information on apportionments for children that go on active duty, see

 

7.  Additional Information Regarding the Actions Claims Processors Must Take When an Apportionee’s Status as a Dependent Changes

 

Introduction

 
This topic contains additional information regarding the actions claims processors must take when an apportionee’s status as a dependent changes, including

Change Date

   February 20, 2025

VII.iii.1.B.7.a.  Effective Date for Removing a Dependent-Apportionee From a Beneficiary’s Award

 
In most situations, VA uses the “end-of-month rule” described in M21-1, Part VII, Subpart i, 1.C.4.b and c when removing an apportionee from a primary beneficiary’s award because the apportionee lost status as a dependent.
  
References:  For more information on adjusting a primary beneficiary’s award because

VII.iii.1.B.7.b.  Changes in a Child-Apportionee’s Status as a Dependent Due to Death, Marriage, Adoption, or Discontinuation of School Attendance

 
Follow the instructions in the table below when a child-apportionee dies, marries, or stops attending school.
  
If the child-apportionee …
Then …
  • dies, and
  • is the only apportionee
  • discontinue the apportionment effective the first day of the month of death, per 38 CFR 3.500(g)(1), and
  • remove the child from the primary beneficiary’s award effective the first day of the month following death, per 38 CFR 3.500(g)(2)(ii).
  • marries, and
  • is the only apportionee
  • discontinue the apportionment effective the first day of the month of marriage, per 38 CFR 3.500(n)(1), and
  • remove the child from the primary beneficiary’s award effective the first day of the month following marriage, per 38 CFR 3.500(n)(2)(ii).
  • is given up for adoption, and
  • is the only apportionee
  • discontinue the apportionment effective the date in the LAST PAID DATE field on the CURRENT AND HISTORICAL AWARD INFORMATION page in VBMS, per 38 CFR 3.500(d)(1), and
  • follow the instructions in M21-1, Part VII, Subpart i, 3.B.5.a, for removing the child from the Veteran’s award.
Important:  Application of the instructions in this cell is limited to Veterans and apportionees in receipt of disability compensation.  M21-1, Part VII, Subpart i, 3.B.5.b, describes the effect the adoption of a Veteran’s child has on an award of Veterans Pension.
  • stops attending school, and
  • is the only apportionee
discontinue the apportionment and remove the child from the primary beneficiary’s award effective the first day of the month following the date school attendance ended, per 38 CFR 3.667(c).
  
Note:  If an award has been made covering a vacation period, and the child fails to return to school at the end of that period, the effective date for the adjustments described above is the earlier of the following dates, per 38 CFR 3.667(b):
  • date in the LAST PAID DATE field on the CURRENT AND HISTORICAL AWARD INFORMATION page in VBMS, or
  • first day of the month following the month the child was scheduled to return to school.
  • marries, dies, or stops attending school, and
  • is included as a dependent on a spouse-apportionee’s award
reduce the spouse-apportionee’s award effective the first day of the month following
  • is given up for adoption, and
  • is included as a dependent on a spouse-apportionee’s award
reduce the spouse-apportionee’s award effective the date in the LAST PAID DATE field on the CURRENT AND HISTORICAL AWARD INFORMATION page in VBMS, per 38 CFR 3.500(d)(1).
 
Reference:  For more information on discontinuing an apportioned award due to the death of the apportionee, see M21-1, Part VII, Subpart iii, 1.B.3.b.

VII.iii.1.B.7.c.  Retroactive Increases in a Primary Beneficiary’s Award That Are Effective Prior to the Date an Apportionee Lost Status as a Dependent

 
If increased disability or decreased income requires a retroactive award adjustment from a date prior to the date an apportionee lost status as a dependent, pay the increased benefit to the primary beneficiary, to include any additional allowance for the dependent-apportionee.  Exclude, however, the amount previously allocated to the apportionee award through the end of the month in which the apportionee lost status as a dependent.

VII.iii.1.B.7.d.  Action to Take if the Apportionee That Lost Status as a Dependent Was One of Multiple Apportionees

 
Follow the steps in the table below if the apportionee that lost status as a dependent was one of multiple apportionees on the same award.
 
Exception:  If the apportionee is a former spouse who divorced the Veteran or whose marriage to the Veteran was annulled, follow the instructions in M21-1, Part VII, Subpart iii, 1.B.2.
  
Step
Action
1
Is the apportionee a former school child that lost status as a dependent because school attendance terminated?
  • If yes, go to the next step.
  • If no, go to Step 4.
2
Update the ALLOTMENT DECISION screen to remove the apportionment to the apportionee.
 
Note:  Use the same effective date in this step as that used in the next step.
3
  • Complete the fields on the DEPENDENCY DECISION screen to remove the apportionee from the primary beneficiary’s award.
  • Go to Step 6.
Note:  Follow the instructions in M21-1, Part VII, Subpart ii, 1.B.4.c, for choosing an effective date.
4
Update the ALLOTMENT DECISION screen to discontinue the apportionment to the apportionee that lost status as a dependent effective the first day of the month during which the event occurred that caused the apportionee to lose status.
5
Complete the fields on the DEPENDENCY DECISION screen to remove the apportionee from the primary beneficiary’s award.
  
Note:  Follow the instructions in M21-1, Part VII, Subpart i, 1.C.4.b.and c for selecting an effective date.
6
Does the most recent apportionment decision specify how much of the primary beneficiary’s award is to be allotted to each apportionee?
  • If yes, go to Step 9.
  • If no, go to the next step.
7
Determine how much of the primary beneficiary’s award to apportion to the remaining apportionee(s) by following the instructions in M21-1, Part VII, Subpart iii, 1.A.3.e.
8
Document the decision made in Step 7 according to the instructions in M21-1, Part VII, Subpart iii, 1.A.3.g.
9
Update the ALLOTMENT DECISION screen with the new amount(s) allotted to the remaining apportionee(s).
10
Notify the primary beneficiary and the apportionee(s) of the actions taken.
 
Reference:  For more information on making award adjustments in​​​​​​​ VBMS-A, see the VBMS Awards User Guide.

VII.iii.1.B.7.e.  Out-of-Custody Children in Receipt of DIC That Lose Their Status as a Dependent

 
According to 38 CFR 3.461(a),
  
The surviving spouse’s award of dependency and indemnity compensation will be apportioned where there is a child or children under 18 years of age and not in the custody of the surviving spouse.  
 
The apportionment referenced in this regulation is slightly different than the apportionments discussed elsewhere in this chapter because it is paid to the out-of-custody child without
  • undertaking development to determine the child’s need
  • issuing notice of proposed adverse action to the primary beneficiary, or
  • preparing an administrative decision.
The out-of-custody child, in this case, is entitled to the amount of additional Dependency and Indemnity Compensation (DIC) payable to the surviving spouse for a child under the age of 18.
  
Other differences in apportionments under 38 CFR 3.461(a) include the following:
  • the discontinuation of an out-of-custody child’s apportionment due to death or marriage does not require a corresponding adjustment of the surviving spouse’s award, and
  • the surviving spouse is not entitled to additional benefits for the child through the end of the month in which the child died or married.