Challenges to the propriety of the creation of an overpayment in the amount of $6,225.65 are denied.

Board reasoning

The Board found that the debt was properly created because the veteran continued receiving an upward spousal adjustment after divorce, and that the overpayment resulted from the veteran’s failure to report the divorce. It also determined that the waiver of recoupment should be denied because the veteran’s fault in causing the debt outweighed any equity in waiving recovery; the veteran benefited from the payments and failed to show financial hardship or reliance that would justify a waiver. The Board applied the evidence and considered the financial status report but concluded the elements for waiver were not met, including the lack of showing that recoupment would cause undue hardship or unjust enrichment.