What You Need to Know About Calculating Military Retirement Pay in a Divorce
Divorce can be a very difficult time, especially for families with military involvement. Here is everything you need to know about how to calculate military retirement pay in a divorce.
First, an ex-spouse must be eligible to receive military retirement pay, with either the 10/10 rule or a court order. The calculation is different for everyone depending on the length of the marriage and the number of points accumulated. There is a special calculation for those who have already retired from the military at the time of the divorce. The maximum amount of pension an ex-spouse can receive is 50% of the military retirement pay.
What Are the Requirements to Be Eligible for Military Retirement Pay in a Divorce?
In order for an ex-spouse to have access to direct military retirement pay in a divorce, the couple must meet certain eligibility requirements. Specifically, the couple must have been married for 10 years, and these years must have overlapped with 10 years of military service.
For example, if a couple was married for 15 years, but one spouse was only active in the military for 8 of those years, then the non-military spouse would not be eligible for direct military retirement pay.
If a couple has not met this rule (otherwise known as the 10/10 rule), then the ex-spouse can still receive military retirement pay in the divorce due to a court order. However, the military would not be able to directly send the ex-spouse’s share to them.
What Military Related Benefits Are Eligible for Division?
The law only allows the division of disposable military pay, which includes the full military pension. For example, VA disability compensation is not included in the military pension. Also, if a servicemember receives combat pay, they are not entitled to any special compensation.
Related: Military Divorce in California: Rights, Process, and Benefits
How to Calculate Military Retirement Pay in a Divorce for Active Members
For ex-spouses, the maximum amount of pension income that they can receive is 50% of their military retirement pay. If the ex-spouse already received their pension, the direct payments will start after 90 days.
Generally, the calculation of the pension amount depends on the length of the marriage or the number of points accumulated. The amount of money received by the ex-spouse usually correlates to how long they were married to the military member during their service. It is rare for a spouse to get 50% of the military retirement pay unless they were married to the military member for their entire time of service.
The three methods used to determine the amount of payment are:
- Net Present Value: this is more common for those who want buyouts upfront
- Deferred Distribution: the amount shared is calculated at the time of divorce, but the receipt of funds is delayed
- Reserve Jurisdiction: this is the most common method, where the share amount is calculated at the time of divorce
How to Calculate Military Retirement Pay in a Divorce for Retired Members
The calculation of military retirement pay for already retired members is much simpler to figure out. One must multiply the marital share against the disposable retired pay. In order to calculate the marital share, a spouse must divide the months of marriage overlapping military service by the total months of military service at the time of retirement.
Related: Dividing Military Pension in a California Divorce
FAQs About Calculating Military Retirement Pay in a Divorce
Can a spouse in the military’s pay be garnished to pay for child support/alimony?
Even though military retirement pay is typically not subject to garnishment, it can be used to support a court order. When a military retiree receives disability compensation, the payment may also be subject to garnishment.
Can an ex-spouse’s share of the military retirement be paid to them directly?
Yes, an ex-spouse’s share of the military retirement can be paid directly to them. This can only occur if the 10/10 rule is met (10 years of service overlapping with 10 years of marriage), and there is disposable retired pay to divide.
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