Military retirement is a core part of long-term financial security. When a marriage ends, questions about who gets what can feel complicated fast. The law treats military retired pay differently from civilian plans, and the rules are specific. Here’s a clear, plain‑English look at how dividing military pension divorce issues typically work, what DFAS requires, and where careful planning can help. If you want to talk through the details of your situation, a conversation with RPM Law can help you understand your options.
The federal law that frames all of this is the Uniformed Services Former Spouses’ Protection Act (USFSPA). It lets state courts treat “disposable retired pay” as marital or community property. That doesn’t mean an automatic 50/50 split. Each state has its own approach to dividing property, and courts look at the facts of the marriage, the length of service, and other assets like the Thrift Savings Plan (TSP).
The “10/10 rule” is often misunderstood. It does not decide whether a former spouse is entitled to a share. It only affects who pays it. If the marriage overlapped at least 10 years with 10 years of creditable service, DFAS can send payments directly to the former spouse. If not, you may still owe what the court orders, but you would pay it yourself rather than through DFAS.
For servicemembers not yet retired when the divorce is finalized, DFAS generally applies the “frozen benefit” rule. The court can award a formula share based on the rank/years of service at the time of divorce, not future promotions or additional service. In practice, a court order might use a marital fraction (months of marriage overlapping service divided by total service) and apply it to the retired pay “frozen” at divorce, with cost‑of‑living adjustments (COLAs) applied later.
VA disability pay and any portion of retired pay you waive to receive it are not divisible as property. That waiver can reduce the amount classified as “disposable retired pay,” which can affect what a former spouse receives from DFAS. Many court orders address this by adjusting support or including protective language. If disability is part of your benefits picture, bring it up early so it’s handled clearly.
The Survivor Benefit Plan (SBP) is separate from the division of retired pay. SBP provides a continuing annuity to a selected beneficiary after the servicemember’s death. Former spouse coverage can be elected by agreement or court order, but DFAS needs the election and the order within strict deadlines (generally within one year). SBP has a monthly premium, typically 6.5% of the covered base. It’s worth discussing whether SBP makes sense in your situation, especially if the former spouse relies on the pension share.
Your TSP is different from the pension. It’s a separate asset that can be divided by a court order, similar to other retirement accounts. Make sure you account for both the pension and the TSP so nothing is overlooked.
- Collect your records: LES, retirement points statements (for Guard/Reserve), promotion history, and any DFAS retirement estimates.
- Check whether your marriage overlapped 10 years of creditable service (10/10) for DFAS direct payment eligibility.
- Confirm if your case uses the “frozen benefit” approach and how the marital fraction will be calculated.
- Decide whether SBP former spouse coverage is part of the settlement and note the one‑year DFAS deadline.
- Address VA disability/waiver issues in plain terms so everyone understands the impact on disposable retired pay.
- List all retirement assets—pension, TSP, and any civilian plans—so the overall division is balanced.
- Use DFAS‑friendly language in the court order (a “court order acceptable for processing” or COAP) to avoid delays.
A few more practical notes help set expectations. DFAS caps direct payments for property division at 50% of disposable retired pay (up to 65% if the order also includes child support or alimony). COLAs usually flow proportionally to percentage or formula awards; fixed‑dollar awards don’t receive COLAs. For Guard and Reserve members, payments to a former spouse typically begin only when non‑regular retired pay starts, often at or near age 60 (earlier for certain qualifying service). Benefits like TRICARE under the 20/20/20 or 20/20/15 rules are separate from property division and have their own eligibility standards.
Every case turns on service dates, promotion timelines, and the exact wording of the court order. Laws and DFAS procedures can change, so it’s smart to verify the latest guidance before finalizing terms. Clear planning now helps you protect your retirement, follow the rules, and keep surprises to a minimum.
How the Uniformed Services Former Spouses’ Protection Act (USFSPA) Works
The USFSPA is the federal law that allows, but does not require, state courts to treat a servicemember’s “disposable retired pay” as marital or community property in a divorce. In plain terms, it opens the door for a court to divide certain portions of military retired pay, and it authorizes the Defense Finance and Accounting Service (DFAS) to send payments directly to a former spouse if the order meets specific criteria. When people search for guidance on dividing military pension divorce issues, they’re usually asking how these rules fit together in real life. Here’s the framework that tends to matter most.
Start with what can be divided. USFSPA uses the term “disposable retired pay,” which is not the same as the gross pension amount. DFAS removes items like VA disability waivers, SBP premiums, and certain debts or recoupments before calculating any share. Disability benefits themselves are not divisible as property. If a member later waives a portion of retired pay to receive disability compensation, the pool of “disposable retired pay” can decrease, which may change what DFAS sends to a former spouse. Many court orders address this in advance through clear language or support adjustments under state law so everyone understands the financial impact.
The “10/10 rule” is about who pays, not whether a share exists. If the marriage overlapped at least 10 years with 10 years of creditable service, DFAS can pay the former spouse directly once the member begins receiving retired pay. If the overlap is less than 10 years, a court may still award a share, but DFAS will not process it; the member would pay it personally. For example, an 8‑year overlap can still lead to a valid award—it just won’t be paid through DFAS. A 12‑year overlap that meets the rule can be paid directly by DFAS if the order is set up correctly.
For divorces finalized on or after late 2016, DFAS applies the “frozen benefit” rule. The court can award a formula that is based on the servicemember’s rank, years of service, and “high‑3” pay base as of the divorce date, not on future promotions or additional service. Think of it as a snapshot taken at divorce. A common approach uses a marital fraction (service time during the marriage divided by total service at divorce) applied to the frozen retired pay base. Cost‑of‑living adjustments (COLAs) generally apply to that frozen amount going forward so the share keeps pace with inflation.
DFAS requires a court order that it can process—often called a Court Order Acceptable for Processing (COAP). Clear percentages or formulas usually work best because they allow COLAs to flow. Fixed‑dollar awards can lose purchasing power over time. DFAS caps direct property division payments at 50% of disposable retired pay (up to 65% if child support or alimony is also being paid). Payments to a former spouse begin only when the member begins receiving retired pay. For Guard and Reserve members, that often means payments start around the time non‑regular retired pay begins, commonly near age 60. Your Thrift Savings Plan (TSP) is separate from the pension and can be divided with its own order; health coverage like TRICARE under the 20/20/20 or 20/20/15 rules is also separate from USFSPA property division.
The Survivor Benefit Plan (SBP) is a different decision track. USFSPA doesn’t automatically grant SBP. If former spouse coverage is part of your agreement or ordered by a court, DFAS needs timely action—generally within one year of the order. SBP provides an annuity to a named beneficiary after the servicemember’s death, and the monthly premium reduces disposable retired pay. Deciding whether to elect former spouse coverage, how to split the premium, and what base amount to cover are all negotiation points that can help protect the value of a former spouse’s share if the member passes away first.
Practical steps help this go smoothly: confirm service dates and marital overlap, gather pay records, and make sure the order uses DFAS‑friendly language. If you’re weighing trade‑offs among pension, TSP, support, and SBP, it’s helpful to model different outcomes before finalizing terms. A focused conversation with RPM Law can clarify how USFSPA applies to your facts and what language gives you the best chance of a clean, timely DFAS process.
Types of Military Retirement Pay That Can Be Divided
When people ask what part of a military pension can be shared in a divorce, the starting point is “disposable retired pay.” Under federal law, that’s the slice of retired pay a state court can divide, and it’s different from the gross amount. Items like VA waiver amounts, Survivor Benefit Plan (SBP) premiums, and certain debts come out first. What remains is the pool DFAS looks at when processing a court‑ordered award.
Regular, longevity-based retired pay from active duty service is the most common category that can be divided. Whether the member retired under Final Pay, High‑3, REDUX, TERA, or the Blended Retirement System, state courts can award a percentage or a formula share of disposable retired pay. For divorces finalized after late 2016, DFAS applies the “frozen benefit” approach, which uses the member’s rank, years of service, and pay base as of the divorce date, with cost‑of‑living adjustments applied later so the share keeps pace with inflation.
Non‑regular retired pay for Guard and Reserve members is also divisible as property once it becomes payable. The timing is the main difference. Instead of starting at retirement from service, payments typically begin at an eligibility age tied to non‑regular retirement rules (often near age 60, earlier with qualifying service). The court’s formula usually relies on the overlap between the marriage and creditable points, applied to the frozen benefit snapshot if the divorce occurred on or after the change in law.
Disability retired pay under Chapter 61 is treated differently. As a general rule, it is not divisible as marital property because it falls outside disposable retired pay. That does not mean disability is ignored. Courts may consider all income sources, including disability, when addressing support under state law, but DFAS will not split Chapter 61 disability retired pay as property. If disability is part of the benefits mix, it’s important to spell out how it interacts with any property division and support so there are no surprises.
VA disability compensation and any portion of retired pay waived to receive it are not divisible as property. This is where CRDP and CRSC come up. Concurrent Retirement and Disability Pay (CRDP) restores retired pay that was waived for VA compensation; because it functions like retired pay, it is included in disposable retired pay and a court‑ordered percentage will typically flow through it. Combat‑Related Special Compensation (CRSC) is different—it’s a separate, non‑taxable payment and not divisible as property. An election of CRSC can lower disposable retired pay, which may change what DFAS sends to a former spouse unless the order or support provisions address that possibility.
Some items are often confused with divisible retired pay but sit on their own track. SBP is an insurance‑like annuity for a beneficiary after the member’s death; it’s not divided as property, but former spouse coverage can be required by agreement or court order within strict DFAS deadlines. The Thrift Savings Plan (TSP) is a separate account that can be divided with its own order. Separation pay and severance are not the same as retired pay and follow different rules. If you’re researching dividing military pension divorce issues and trying to map these categories to your facts, a focused conversation with RPM Law can help you understand practical options without overcomplicating the process.
Calculating the “10/10 Rule” & Applicable Formulas
The “10/10 rule” is simple in concept but easy to mix up. It does not decide whether a former spouse gets a share of retired pay. It only decides whether DFAS can send that share directly. To qualify, there must be at least 10 years of marriage that overlap with at least 10 years of creditable military service. Think of it as measuring the overlap window between two timelines: the marriage and the member’s service that counts toward retirement.
How to check the 10/10 rule. Start with the marriage date and divorce date (or separation date if your court uses it). Then look at the member’s creditable service dates. The overlap is the period when both timelines are “on.” If that overlap is 10 years or more, DFAS can process direct payments once retired pay starts. If it’s 9 years and 11 months, DFAS will not. Because DFAS verifies dates precisely, even one day short can cause a denial. Orders that list the marriage dates and creditable service dates clearly tend to move faster.
Example: The marriage lasted from June 1, 2008 to June 1, 2018. The member’s creditable service ran from January 15, 2006 to present. The overlap is exactly June 1, 2008 to June 1, 2018—10 years. This meets the 10/10 rule. If the marriage ended on May 30, 2018, the overlap would fall under 10 years and DFAS would not send direct payments, even though a court could still award a share that the member pays directly.
Once you know who pays, the next question is how to calculate the share. For divorces finalized on or after late 2016, DFAS applies the “frozen benefit” approach. The court can award a percentage of the member’s disposable retired pay, calculated using the member’s rank, years of service, and “high‑3” pay base as of the divorce date. Cost‑of‑living adjustments apply later. Promotions or additional service after the divorce are not included in the base used for the former spouse’s share.
The standard formula uses a marital fraction multiplied by an award percentage. In words: Former Spouse’s Share = Award Percentage × (Service During Marriage ÷ Total Service at Divorce) × Disposable Retired Pay (frozen at divorce, with COLAs). The award percentage is chosen by the court under state law—often 50% of the marital portion, but not automatically. “Service” is typically measured in months for active duty.
Number example (active duty): Assume the marriage overlapped 132 months of creditable service, and total creditable service at divorce was 240 months. The marital fraction is 132 ÷ 240 = 0.55. If the court awards 50% of the marital portion, the percentage applied to disposable retired pay is 0.50 × 0.55 = 0.275, or 27.5%. That 27.5% will be applied to the frozen disposable retired pay base, and then COLAs increase the amount over time.
Guard and Reserve cases use retirement points instead of months. Replace months with points in the same framework. Example: 2,600 creditable points earned during the marriage and 4,500 total points at divorce. The marital fraction is 2,600 ÷ 4,500 ≈ 0.5778. With a 50% award of the marital portion, the share is about 28.89% of the frozen disposable retired pay when it becomes payable, often near the member’s eligibility age.
Fixed-dollar awards are possible but usually don’t receive COLAs, so many orders use a percentage or formula. Clear terms like “applied to disposable retired pay as defined by federal law” help DFAS process the order. If VA disability, CRDP, or CRSC may be involved, it’s wise to spell out how changes could affect disposable retired pay and whether support adjustments will address any shortfall.
Two practical reminders for anyone working through dividing military pension divorce questions. First, the 10/10 rule only affects payment method; entitlement comes from state property law. Second, the math depends on accurate dates and service data. Marriage certificates, LES statements, DD‑214s, retirement point summaries, and DFAS estimates make the calculations smoother. If you want a walk‑through of your dates and numbers before finalizing language, RPM Law can explain how these formulas may apply to your situation so your order is ready for DFAS review.
Handling Survivor Benefit Plans (SBP) & Ancillary Issues
SBP sits alongside, not inside, the property division of retired pay. When you’re working through dividing military pension divorce terms, it’s smart to treat SBP as its own decision tree: who is protected, at what coverage level, who pays the premium, and how to meet DFAS deadlines. SBP is an annuity that continues a portion of retired pay to a designated beneficiary after the servicemember’s death. Without SBP (or a comparable plan), a former spouse’s share of monthly retired pay typically stops when the member passes away. That’s why SBP often becomes a key negotiation point.
Coverage basics. Former spouse coverage can be elected by agreement or ordered by a court. DFAS applies strict timelines. Generally, the member can elect former spouse coverage within one year of the divorce or court order. A former spouse can protect the election by filing a “deemed election” request with DFAS within that same one‑year window. DFAS forms and processes evolve, but the common paperwork includes DD Form 2656‑1 (member’s election of former spouse coverage) and DD Form 2656‑10 (former spouse’s request for deemed election). Missing the one‑year deadline can close the door unless Congress authorizes a future open season, which is rare.
Choosing the base amount. SBP lets you select a “base” between $300 and full retired pay. The premium for active component SBP is typically 6.5% of the chosen base, deducted pre‑tax from retired pay. The annuity is 55% of that base, adjusted by COLAs over time. Many families tie the base to the value they want to protect. For example, if a court awards a former spouse 30% of disposable retired pay and the parties want that stream protected, electing full SBP often aligns best. Others set a lower base to manage premium cost. There isn’t a single right answer; it depends on priorities, budget, and who bears the premium.
Who pays the premium. Premiums reduce “disposable retired pay,” which can change the dollars a former spouse receives through DFAS on the property division side. Because of that, orders often say how the cost will be shared—by adjusting the percentage, through a reimbursement clause, or by assigning the full cost to one party. Clear language can prevent later disagreement about whether the SBP premium should be factored into support or property payments.
Reserve Component considerations. If the member received a 20‑year letter, Reserve Component SBP (RCSBP) decisions may have already been made using Options A, B, or C. A divorce after that point usually requires converting spouse coverage to former spouse coverage within one year of the order. The election mechanics are different for RCSBP (DD Form 2656‑5 is commonly used), and the cost structure includes a charge for coverage that starts before age‑60 retired pay. Getting the conversion on file promptly helps avoid gaps.
Life events that affect SBP. If a former spouse remarries before age 55, SBP payments are suspended and can resume if the later marriage ends; remarriage at 55 or older generally does not stop the annuity. Child‑only or former spouse‑and‑child coverage can be used in some families, but child coverage ends when eligibility ends. SBP premiums stop after 360 months of payments and at least age 70 (“paid‑up SBP”). For surviving spouses who also receive VA Dependency and Indemnity Compensation, Congress removed the longstanding SBP‑DIC offset; both can now be received under current law.
How SBP interacts with other pieces. SBP is separate from the Thrift Savings Plan and separate from health coverage rules (like 20/20/20). It is also separate from life insurance. Federal law controls SGLI and VGLI beneficiary designations, so courts generally do not re‑route those benefits; some parties use private life insurance to backstop obligations if SBP is not elected. When disability benefits, CRDP, or CRSC are part of the picture, remember that SBP premiums are deducted before DFAS calculates “disposable retired pay,” and that can affect a percentage award.
Putting it into practice. The most practical approach is to decide early whether SBP will be part of the settlement, match the base to your goals, assign the premium in writing, and file the election on time. If you’re researching dividing military pension divorce questions and want to see how a specific SBP choice would affect monthly cash flow, a short modeling exercise can make the trade‑offs clear. RPM Law can discuss options, draft DFAS‑friendly language, and help make sure deadlines and forms are handled correctly so the plan you choose is the plan DFAS administers.
