No. On the contrary, he may even end up getting more by waiving part of his pension. For example, the husband H has a total retired pay of $2000, and the court awards 50% to his wife W. That means that each of them would be getting $1000. But if H gets a disability rating and chooses to receive the VA disability pay of let’s say $800, then this means he waives $800 from his retirement pay.
So now DFAS payment to W is only $600 instead of $1000 (she gets 50% of $1,200 instead of $2,000). W is now short $400 as a result of H waiving part of his retirement pay.
H’s income is now $600 from pension and $800 from his VA. If he’s paying taxes at 20% federal, 5% state, then he’s receiving net: $450, plus his VA benefits, which is tax free, $800. He gets a total of $1220, while W will only get $450.
If H were to reimburse W, he will pay her the missing $400 a month, which is deductible for him and only costs him $300 in his tax brackets. Thus, he would he would still have $950 after taxes, while before the waiver he was receiving $1000 taxable or $750 after taxes.
Based on this, W will get reimbursed and will get the $1000 as the court ordered, while H will still end up with more than what he had before the waiver.