lilgecko

You really need to confer with a family law atty who is in a military area. They will be familiar with Disability versus Service military retirements and how the Domestic Relations Order should be drafted (reverse engineer, with info re the 'boilerplate' {Q}DROs that are used, & see what you need to have the court order to attain that DRO).
If your entire dispute is only about an 'indemnification clause' - sorry, I can't spend time researching such - they are useful, but often impotent. I'm not use what you want him to indemnify ... things get dodgey when disability is a component.
FYI:
If I am qualified for both concurrent receipt and Combat-Related Special Compensation (CRSC) can I take both?
Answer: No. DFAS is paying each retiree the higher dollar amount between the CRSC and CRDP payments regardless of taxable disposition of CRDP.


Note: December 2005 retired members entitled to receive either CRSC or Concurrent Retirement and Disability Pay (CRDP) will be provided with an election form as part of the annual open season. During the open season, affected retirees will have the opportunity to elect to receive either CRDP or CRSC for the next year. In order for the entitlement to change, the form must be received and processed by Jan. 31, 2006. Based on the election, the change will take effect on the payment dated Feb.1, 2006. In addition, as a result of the phased in CRDP, the amount retirees will receive for CRDP will increase effective January 2006 and will be reflected in the payment dated Feb.1, 2006.

Is the concurrent receipt compensation taxable?
Answer: Based on current law regarding taxability of disability income (26 U.S.C. 104), concurrent receipt may be taxable the same as your regular retirement pay.