Military pensions and benefits often represent some of the most valuable assets in a divorce involving a service member. Dividing these benefits can be complex due to federal and state regulations. Understanding the basic rules helps both parties protect their rights during the divorce process.
Military pension division
Courts typically consider military pensions as marital property, which means both spouses have a claim to the benefits accrued during the marriage. Courts often divide these pensions using the “10/10 rule.” If the couple stayed married for at least 10 years while the service member was on active duty, the non-military spouse can receive direct payments from the Defense Finance and Accounting Service (DFAS). However, even if the marriage lasted fewer than 10 years, the non-military spouse may still claim a portion of the pension. In these cases, other arrangements handle the payments.
Survivor Benefit Plan considerations
The Survivor Benefit Plan (SBP) provides income to a surviving spouse after a military retiree dies. During divorce proceedings, spouses must decide how to handle SBP coverage. The non-military spouse may want to receive designation as the beneficiary to ensure financial stability after the former service member’s death. The divorce decree must clearly document this choice.
Division of VA benefits
VA disability benefits differ from military pensions. Unlike pensions, VA benefits generally do not qualify as divisible assets in a divorce. These benefits are tax-free payments meant to compensate for a service-related disability. However, VA benefits may impact other aspects of the divorce, such as spousal support or alimony calculations. Courts often consider these payments when deciding on support amounts, even if they do not directly divide the VA benefits.
Dividing military benefits requires a clear understanding of the rules. Both spouses need to work with attorneys experienced in military divorces to ensure fair asset distribution. The right knowledge helps secure financial stability for both parties.