AZ SB1336

Amends Arizona law to exclude federal disability benefits for service-connected disabilities from consideration when dividing property in divorce or dissolution proceedings.

Prohibits courts from indemnifying a veteran's spouse or former spouse for any waiver or reduction in military retirement or retainer pay caused by receipt of disability benefits.

Prohibits courts from awarding other income or property to a spouse or former spouse to compensate for any waiver or reduction in military retired or retainer pay related to disability benefits.

Establishes that retainer pay awarded to a spouse who is a veteran is the separate property of that spouse, not subject to community property division.