How does divorce impact military benefits and pensions?

Divorce brings unique challenges for military families, especially when it comes to dividing benefits and pensions. Understanding the impact on these financial resources is crucial for service members and their spouses.

Division of military pensions

Military pensions can be a significant asset in divorce cases. Under the Uniformed Services Former Spouses’ Protection Act (USFSPA), state courts can treat military retirement pay as divisible property. The length of the marriage and overlap with the military service determines how much, if any, a spouse may receive.

Survivor Benefit Plan (SBP)

The Survivor Benefit Plan (SBP) provides ongoing payments to a designated beneficiary after the service member’s death. During a divorce, the agreement must clearly specify whether the former spouse will receive SBP coverage. Without securing these rights in the divorce settlement, the former spouse may face a lack of future financial support.

Impact on healthcare benefits

The military healthcare program provides coverage for service members and their families. After divorce, a former spouse may lose eligibility unless they meet specific conditions. Spouses who qualify under the “20/20/20 rule” (20 years of marriage, 20 years of military service, and 20 years of overlap between the two) retain lifetime healthcare benefits.

VA disability benefits

Unlike military pensions, VA disability benefits are generally not divisible in a divorce. However, they can impact the overall financial settlement. Courts may consider them when determining spousal support, potentially lowering the service member’s obligation.

Addressing child support and alimony

Divorce settlements involving military families must consider child support and alimony. Federal laws regulate how much a service member must pay, ensuring they meet their financial obligations within legal limits.

Navigating military benefits and pensions in divorce requires careful planning. Understanding the laws that govern these assets ensures fair outcomes for both parties. Consulting an attorney experienced in divorce helps protect financial interests and secures the benefits each spouse deserves.