Federal disability benefits awarded to veterans are exempt from creditors’ claims. But this exemption does not apply to the extent of that portion of the benefits that is subject to child and spousal support enforcement under 42 USC § 659(h)(1)(A)(ii)(V), as expressed in California Code of Civil Procedure (CCP) § 483.013:
“Notwithstanding Section 483.010, federal disability benefits awarded to veterans for service-connected disabilities pursuant to Chapter 11 of Title 38 of the United States Code shall be exempt from the claim of creditors, and shall not be liable to attachment, levy, or seizure by or under any legal or equitable process whatsoever, as provided by federal law. This section does not apply to that portion of service-connected disability benefits that are subject to child and spousal support enforcement under Section 659(h)(1)(A)(ii)(V) of Title 42 of the United States Code.”