In military families, pensions can be complicated. In cases of divorces between military couples, effectively dividing military or army pensions can be equally if not more confusing. In the past, military couples facing divorce have had judges and courts make mistakes when dividing pensions, mistakes that have costly consequences for the military member.
Rules for Military Divorces and Pensions
In most divorces, one or the other spouse is a member of the armed forces, and therefore has the pension. In the cases of traditional pensions, an amount of money is held in an account, and people can draw money out against it (with severe tax penalties of course). The idea with traditional pensions is that the money already exists, and if the person dies, he or she can leave that money to an heir.
A military pension is different. There is no money sitting in an account, as with other pensions. When a member of the armed forces retires, he or she gets “retired pay” which is what is referred to as a military pension. Each year the federal government determines a budget, and money is designated each year to pay retired servicemen and women. This money is paid to the retired person as long as he or she is living; there is no money in an account that is subsequently left to an heir.
Military pensions are determined in the following way:
- As mentioned, the federal government determines an amount for military retired persons to receive each year.
- This amount is adjusted annually for the cost of living (COLAs).
- The military pay is affected if the retired serviceperson is receiving disability benefits through the Veterans Affairs Office. New laws mean many changes to how these disability benefits affect military pensions.
- Military pensions are determined on a point-structure, not based on tenure and market fluctuations as they would in traditional pensions. If a service member services 20 years, he or she gets 7,305 points which means that upon retirement, they receive about 50 percent of their base salary in retired pay. This amount increases for each year over 20 that is served, and for those serving 30 years or more, retired pay can amount to 75 percent of his or her base pay.
In cases of divorce, a service member’s spouse would be entitled to receive half of that retired pay in addition to the cost of living adjustments. If a couple is divorced and one spouse continues in the military, there is a question if the non-military spouse received benefits based on the number of years served as of the divorce date, or based upon the ultimate time served.
Getting Help
Because military divorces are complicated, it is imperative you get assistance from an experienced lawyer. An attorney can help you comply with all requirements and that you get the pension benefits you deserve.
