Most VA disability claims involve a single veteran filing for benefits based on their own service. But there are situations where two or more people claim entitlement to the same VA benefit, and when that happens, the VA treats the matter as a contested claim. These disputes are relatively uncommon, but they involve special rules and procedures that differ from the standard claims process. Understanding how contested claims work is important if you find yourself in a dispute over benefits that another person is also claiming.
Contested claims most commonly arise in a few specific scenarios. Apportionment disputes are the most frequent — this is where a veteran's estranged spouse or dependent child requests that a portion of the veteran's disability compensation be redirected to them for support. Another common situation involves competing dependency claims, such as when two people each claim to be the veteran's legal spouse and therefore entitled to additional dependent benefits. Contested claims can also arise in survivor benefit cases where multiple individuals claim eligibility for DIC or accrued benefits. In each of these situations, the VA must decide between competing interests.
The VA handles contested claims under special procedural rules that provide additional protections to both parties. The most important of these is that both the claimant and the person whose benefits might be affected receive notice of each other's claim. This is different from a normal claim where only the veteran receives correspondence. In a contested claim, each party has the right to see the evidence submitted by the other side and to respond to it. This ensures that neither party is blindsided by a decision based on information they never had a chance to address.
Both parties in a contested claim have the right to representation and the right to a hearing. Each person can appoint their own representative, whether that is a Veterans Service Organization, an attorney, or an accredited agent. If either party requests a hearing, the VA will schedule one and both sides will have the opportunity to present their case. The VA regional office makes the initial decision, and if either party disagrees, they can appeal. Appeals in contested claims follow the same general process as other VA appeals, but with the added requirement that both parties continue to receive notice at each stage.
One practical effect of a contested claim is that it can delay payment. When a dispute is pending, the VA may withhold or reduce payments until the matter is resolved, particularly in apportionment cases where the question is how much of the veteran's compensation should go to a dependent. This withholding is not a punishment — it is the VA's way of ensuring that the correct person receives the correct amount once the dispute is settled. Once a final decision is made, any amounts owed will be paid retroactively to the appropriate party.
If you receive notice that someone has filed a contested claim involving your benefits, take it seriously and respond promptly. You have the right to submit evidence and argument in your favor, and failing to respond could result in an unfavorable decision. Consulting with a representative who has experience with contested claims is strongly recommended, as the procedural requirements are more complex than a standard claim.
Note: This article references sections of the VA's M21-1 Adjudication Procedures Manual. The VA periodically reorganizes the M21-1 and section numbers may have changed since this article was written. For the most current section references, visit the VA's public M21-1 Web Automated Reference Material System (WARMS).