What You Need to Know About Military Spouse Benefits After a Divorce
Divorce involving a spouse in the military can complicate the divorce process. Here is what you need to know about divorced military spouse benefits.
Upon divorce, there are certain benefits that a former spouse of a person who served in the military may be eligible to receive. On the other hand, there are some benefits that a former spouse can lose completely.
Retirement Benefits
Those who actively served in the military for 20 years or more can qualify for a lifetime government pension plan under the Thrift Savings Plan. This government pension is a valuable financial property that can be considered a marital asset. Under federal and California law, spouses can be eligible to receive up to 50 percent of disposable income provided by this pension. It is important to note that disposable income is considered community property in California. To qualify, the marriage has to have lasted for at least ten years during which the military spouse actively served.
Related: How to Calculate Military Retirement Pay in a Divorce
VA Disability Payments
Provided by the Department of Veteran Affairs, VA Disability Payments are tax-free monthly payments given to those who obtained an injury or became ill while serving in the military. Those who had a pre-existing condition that worsened during or after military service may also be entitled to these benefits. The Uniformed Services Former Spouses’ Protection Act (USFSPA) prohibits these monthly payments from being considered community property and protects them from being divisible upon divorce. Thus, in California, former military spouses are not entitled to VA disability payments.
Healthcare
Divorced military spouses are entitled to certain healthcare benefits under certain conditions. Here are three possible programs/benefits that an ex-military spouse may qualify for:
Continued Health Care Benefits Program
The Continued Health Care Benefits Program entitles a former military spouse to Tricare for three years. If the former spouse remains unmarried and also receives military retirement benefits, the former spouse may stay on this healthcare program for life. One downside to this program is it is expensive; it may be more cost-effective to switch to another healthcare policy.
20/20/20 Benefits
The former military spouse may be entitled to 20/20/20 health care benefits (which include Tricare health) if the following eligibility requirements are met:
- If the couple was married for 20 years or more,
- The military serviceperson served for 20 years or more, AND
- At least 20 of these years overlapped with each other
Related: What is The 20/20/20 Rule in Military Divorce?
20/20/15 Benefits
The former military spouse is entitled to 1 year of transitional medicine (or Tricare health) if the following eligibility requirements are met:
- If the couple was married for 20 years or more,
- The military serviceperson served for 20 years or more, AND
- Only 15 of these years overlap with each other
Survivor Benefit Plan
The Survivor Benefit Plan is a retirement plan sponsored by the Department of Defense to provide up to 55% of the retiree’s salary to an assigned beneficiary upon the retiree’s death. A former military spouse can be entitled to Survivor Benefit Plan benefits. Former military spouses must take the proper steps to ensure that their rights to the Survivor Benefit Plan are explicitly cited upon a divorce judgment to avoid losing these rights entirely. If not, this could result in complications for the former spouse obtaining these benefits to which they are entitled, such as the military retiree excluding the former spouse from these benefits entirely.
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If you or a loved one have any more questions about divorced military spouse benefits, contact us. Get your free consultation with one of our California Divorce Attorneys today!