Military retirement benefits often provide essential support to retired servicemembers and their spouses. This importance often makes them a significant challenge if those servicemembers divorce. What should you know about the way courts handle these benefits?
Under the USFSPA, courts can divide retirement pay.
Military retirement benefits are a significant asset for service members and their families. The Uniformed Services Former Spouses’ Protection Act (USFSPA) lets state courts treat military retirement pay as marital property. As a result, courts can divide it during a divorce.
Former spouses may also qualify for other benefits after divorce. These can include health care, commissary and exchange access in some situations.
The 10/10 rule defines how former spouses receive their benefits.
Some people think you must have been married for at least 10 years while the service member was in the military to get retirement benefits. However, former spouses can receive benefits even if this is not the case for their marriage.
In reality, the 10/10 rule determines when people can receive direct payments from the Defense Finance and Accounting Service (DFAS). If a marriage overlaps with military service for at least 10 years of service, they can receive payments from DFAS. If it does not, civilian spouses will receive payments directly from the retired servicemember.
Former spouses may also receive benefits from the Survivor Benefit Plan (SBP).
The SBP provides continued income after the service member’s death. While this often covers spouses, the program can also cover former spouses. Including SBP coverage in the divorce settlement is important for ensuring financial security.
Legal guidance can help you receive your fair share.
Divorce can be especially complex for servicemembers and their civilian spouses. An attorney with experience in military divorces can help you understand the process and make sure you get your fair share. With their legal insights, you can make informed decisions during your divorce.
Dividing military retirement pay in a divorce requires careful consideration and understanding of both federal and state laws. Understanding how the law handles retirement pay can help you take steps to protect your financial future.