In parts one and two, we covered an overview of military divorce and discussed special considerations regarding children and military divorce. In our final post in this series, we’ll examine implications for pensions and alimony as well as how to advocate for your rights and a fair result.
How Military Pension Works
When a service member retires after a minimum of 20 years of service, he or she receives a pension as compensation. Under the Uniformed Services Former Spouses Protection Act of 1982, these pensions are considered marital property. As such, they are split during the divorce, and that division can be negotiated. In many cases, the deciding factor is the length of the marriage and whether it overlapped with the person’s time in the service and, if so, for how long. Again, that division does not need to be equal.
Under the USFSPA, state courts can withdraw a maximum of 50 percent of the retired person’s pension. Although the courts might award a higher amount, the retired person will then need to pay the difference directly to his or her ex. In addition, the marriage needed to last a minimum of 10 years in order to go through the finance center. If the court does grant pension to a person whose marriage lasted less than 10 years, then he or she again needs to directly pay the ex.
In some cases, the spouse might trade off a smaller portion of the pension for another consideration, such as a house. The spouse should consult with a family law attorney to see which option makes the most strategic sense depending on the situation.
Survivor’s Benefit Plan
The spouse should ensure that he or she is included in the Survivor’s Benefit Plan (SBP), which continues to pay the pension if the spouse precedes him or her in death. The SBP is separate from the pension, and it should be assessed accordingly.
Service Members Group Life Insurance
During a divorce, the couple can also negotiate naming the ex as the beneficiary in the Service Members Group Life Insurance policy. This money can be designed to replace child support payments should the person die while serving his or her country. For example, the ex can receive $80,000, while the remainder can be placed into a trust for the children.
Additional Military Benefits
An ex-spouse might also be entitled to full medical, theater, exchange and commissary privileges under the following circumstances:
• The couple was married for at least 20 years
• The service member accumulated a minimum of 20 years of service and
• The military service and the marriage had at least a 20-year overlap.
Pension Payments and Your Military Divorce
Pension negotiations can be quite complex, especially if a couple has been married for 20 years or more. Our family law firm understands these challenges. Contact us at (763) 783-5146 to find out how we can help.