During the course of a military member’s career, they likely contribute to the Thrift Savings Plan, a retirement fund where the government may match contributions up to 4%. Once the servicemember retires they will receive a pension in the form of monthly retirement checks, given that they served 20 years or more. This is a significant benefit and asset so it may become a contested issue during a divorce. Military pensions may be divided in a divorce depending on the details of the situation and relationship. For more information and to ensure your rights are protected through this process, work with a Sussex County, Sparta NJ military divorce attorney.
Do Military Pensions Get Divided During a Divorce?
Like any asset, whether or not a military pension is subject to property division during a divorce depends on whether or not the funds are considered marital or separate property. During a marriage, both spouses’ income is considered jointly owned. When a military member contributes to their pension, they are using marital funds to do so. Because of this, under the federal government’s Uniform Services Former Spouse Protection Act (USFSPA), military pensions are considered marital assets and can be divided during divorce property distribution.
How Much of the Pension Am I Entitled To?
Regardless of how long your marriage lasted, you are likely entitled to some of your former spouse’s military pension. However, under federal law, you are only allowed up to 50% of the monthly amount paid to your ex.
What is the Frozen Benefit Rule?
Prior to 2016, courts would split a military spouse’s retirement funds 50/50 based on the value of the pension when the individual retired. Keep in mind that the amount received in pension checks is based on a percentage of the highest basic pay that the servicemember received. Salaries increase based on rank and promotions.
This meant that even if you divorced while your spouse was a Captain, if they retired as a Major you would receive 50% of the pension amount for their higher Major salary. However, that rule has changed.
Under the frozen benefit rule, you cannot benefit financially from a promotion that your spouse receives after your divorce is finalized. The amount of money you are entitled to through your ex’s pension is capped at the rank they held during your marriage.
What is the 10/10 Rule?
The 10/10 rule governs how you will receive your share of the military pension. You can be given the money through a check from the government or from your former spouse.
The 10/10 rule only applies to couples who were married for at least 10 years of the military member’s service. If 10 years of your marriage overlap with 10 years of your spouse’s military career, you are eligible to receive payment directly from the Defense Finance Accounting Service. Otherwise, your ex will be responsible for paying you in a court-approved manner.
Reach out to an experienced divorce attorney for more information and legal advice.
