Many families count on military retired pay for support, not just in the short-term but for future planning as well. It is a crucial benefit that deserving individuals take advantage of. What happens in the event of a divorce?
Is military retired pay affected by this type of separation? And if so, how?
A former spouse can receive a portion of military retired pay
When considering the impact of a divorce on military retired pay, there are two things to know.
First is that federal law (the Uniformed Services Former Spouses Protection Act) allows divorce courts to treat military retired pay as divisible property, in accordance with that state’s particular laws. Second, here in Washington, retirement benefits are considered community property and, therefore, subject to property division during divorce.
Military retired pay is no exception. This means, in a divorce, the former spouse of someone receiving military retired pay is eligible to receive up to half of the amount of the benefits.
What is the 10/10 rule?
When people discuss military retired pay and divorce, they often refer to the 10/10 rule. This rule has nothing to do with determining the amount a former partner is owed. Rather, it is used only to determine whether a divorced individual can receive their share of a former spouse’s military retired pay directly from the Defense Finance Accounting Service (DFAS).
If the marriage lasted at least 10 years, and if during that time the service member or retiree served at least 10 years of creditable military service, then the 10/10 rule applies. In that case, DFAS will send the court-ordered portion of the retirement pay directly to the former spouse.
If a former spouse does not meet the 10/10 criteria, they may still be awarded a share of military retired pay. However, rather than the DFAS being involved, the full payment amount will go to the service member or retiree, and they will have to make proper payment arrangements with their former spouse.
A complex situation
Divorce is strenuous. It can challenge families, both emotionally and financially. The rules for military divorce can make things seem even more complex, particularly when benefits are involved. (Keep in mind, this post only discusses military retired pay. It does not delve into the rules for VA pensions or disability benefits.)
With proper planning and guidance, it is possible to come out the other side fully ready for what is to come.