Military pensions often represent a significant asset for military families. When a couple divorces, dividing a military pension can become complex due to certain laws and guidelines. Understanding how to divide the pension helps both parties prepare for negotiations and achieve a fair outcome.
The Uniformed Services Former Spouses’ Protection Act (USFSPA)
The USFSPA governs the division of military pensions during divorce. It allows states to treat military pensions as marital property, subject to division. The law gives states the authority to decide how much of the pension the non-military spouse will receive.
Community property vs. equitable distribution
States follow different rules for dividing assets. Some states use community property laws, where both spouses receive an equal share of marital assets, including the military pension. Other states apply equitable distribution, where courts divide assets based on what they consider fair, not necessarily equal.
The “10/10 rule”
The “10/10 rule” often confuses divorcing military couples. This rule states that the Defense Finance and Accounting Service (DFAS) will directly pay a former spouse their share of the pension if the marriage lasted at least ten years and overlapped with ten years of military service. However, the rule does not determine eligibility to receive part of the pension—it only affects how payments occur.
Factors affecting pension division
Several factors influence the division of a military pension. Courts consider the length of the marriage, the overlap with military service, and any agreements between spouses. Sometimes, a former spouse receives a fixed dollar amount instead of a percentage of the pension.
Dividing a military pension requires careful planning and a solid understanding of the rules. With the right guidance, both spouses can protect their financial future and make informed decisions during the divorce process.