Clauson v. Clauson
In Clauson v. Clauson, 831 P.2d 1257, 1263 (Alaska 1992), the court drew a careful distinction between considering the economic consequences of one spouse's receipt of military disability benefits and offsetting the receipt of such benefits by giving the other spouse other property. That court stated:
"We are aware of the risk that our holding today might lead trial courts to simply shift an amount of property equivalent to the waived retirement pay from the military spouse's side of the ledger to the other spouse's side. This is unacceptable. In arriving at an equitable distribution of marital assets, courts should only consider a party's military disability benefits as they affect the financial circumstances of both parties. Disability benefits should not, either in form or substance, be treated as marital property subject to division upon the dissolution of marriage." 831 P.2d at 1264.