Military benefits are more than paychecks and uniforms. They include healthcare, housing allowances, retirement options, disability compensation, life insurance, education benefits, and access to on-base resources. When a legal matter touches a service member or a military family, these benefits often sit at the center of the discussion. Understanding what exists, how it’s valued, and what happens if a benefit changes can shape smart decisions and help avoid surprises.
Start with the basics. Active-duty pay is only one piece of total compensation. Many families rely on Basic Allowance for Housing (BAH), Basic Allowance for Subsistence (BAS), and TRICARE coverage. Some service members receive special pays or incentives tied to deployments or skills. Veterans may have VA disability benefits, which are treated differently from military retired pay. The Thrift Savings Plan (TSP) and the Survivor Benefit Plan (SBP) add another layer to long-term planning. Each piece can affect negotiations in divorce, support, or personal injury cases.
In family law, income calculations matter. BAH is generally considered income for support purposes, while VA disability payments have special rules and are not the same as disposable retired pay. Military retired pay may be divisible under federal law, but VA disability offsets can reduce the portion of retired pay that is actually available. SBP elections can protect long-term stability for a former spouse, but they come with costs and deadlines. For long marriages overlapping service, eligibility for continued military ID and TRICARE can depend on the 20/20/20 or 20/20/15 rules, which look at years of marriage and service overlap.
For injury or employment claims, a sudden loss or reduction of benefits changes the math. Healthcare coverage through TRICARE, access to on-base childcare, or the value of non-taxable housing allowances are real economic benefits. When they disappear or shrink because of an incident or separation from service, the financial impact can be significant. This is where it’s important to clearly explain How Benefit Losses Affect the Overall Settlement. A realistic valuation should account for replacement insurance costs, higher housing expenses, and the tax impact of switching from allowances to taxable income.
Documentation helps. A simple example: a soldier separates from service and loses BAH and TRICARE. Rent and premiums go up. A careful settlement calculation will look at local market rent, plan premiums and deductibles, and the after-tax cost of replacing those benefits. In divorce, a sailor with a VA rating may see retired pay reduced by disability compensation; that adjustment needs to be reflected in any property or support negotiations. Clear records make these conversations faster and more accurate.
- Leave and Earnings Statements (LES) showing base pay and allowances
- Orders, DD-214, and any retirement or separation paperwork
- VA rating decisions and disability award letters
- TRICARE plan information and prior premium or out-of-pocket costs
- TSP statements and SBP election or cost details
- Housing records: past BAH rates, lease or mortgage documents, local rent data
Tax treatment is another quiet factor. BAH and BAS are generally non-taxable, so replacing them with taxable wages can change take-home pay more than expected. Retirement pay is typically taxable; VA disability compensation is not. These differences can influence support calculations and long-term budgets.
If you are planning a move, a transition out of service, or a life change such as divorce, build a clear picture of your benefits first. List what you receive today, what could change, and what it would cost to replace or maintain similar coverage. Use current BAH tables, TRICARE plan comparisons, and VA benefit letters. This kind of snapshot keeps negotiations grounded in facts rather than estimates.
RPM Law can help you sort which benefits count as income, which may be divisible, and how to present them in a way that is straightforward and well-documented. The aim is simple: reduce guesswork, highlight the real-world value of your benefits, and make choices that support your family’s long-term stability—whether you are serving, transitioning, or already a veteran.
Healthcare & Insurance Issues After Divorce
Healthcare coverage often changes when a marriage ends, and those changes can be easy to overlook in the middle of everything else. After a divorce is finalized, a spouse generally can’t remain on the other spouse’s employer plan as a dependent. That usually leaves three paths: elect COBRA for temporary continuation, enroll in an Affordable Care Act marketplace plan during a special enrollment period, or join a new employer plan if eligible. Each option has different costs, deadlines, and networks. COBRA can bridge a gap but typically requires paying the full premium plus an administrative fee. Marketplace plans may qualify for income-based subsidies, but those depend on your updated tax filing status and household size, so timely updates matter.
Military families face their own rules. Former spouses may keep TRICARE only if they meet the 20/20/20 rule, or have limited transitional eligibility under 20/20/15. If those rules don’t apply, the Continued Health Care Benefit Program can provide temporary coverage that looks and functions a lot like COBRA. Children can usually stay on TRICARE or an employer plan, regardless of the divorce, but a court order often designates which parent maintains coverage and how unreimbursed expenses are shared. Missing a deadline can create a gap, so it helps to note the date the decree is entered and confirm when current coverage ends.
If you use the marketplace, divorce triggers a special enrollment period, but it’s time-limited. Plan selection should look at more than the monthly premium. Check deductibles, co-pays, prescription tiers, and your doctors’ network status. If your income changes because support, allowances, or other benefits shift, update your marketplace application to keep advance premium tax credits accurate and avoid year-end surprises on your tax return. If you move, update your address promptly; plans and subsidy levels can change by county.
Employer benefits like Health Savings Accounts and Flexible Spending Accounts also come into play. An HSA belongs to the account holder, but it can be divided incident to divorce without tax if handled correctly. An FSA is generally “use it or lose it,” and election changes may be permitted after a qualifying life event; plan rules and timelines apply. Dependent care FSAs tie closely to your parenting schedule, so the practical arrangement for childcare should match what the plan expects.
Healthcare choices ripple into settlement planning. Premiums, out-of-pocket costs, and loss of subsidized or non-taxable benefits can affect monthly cash flow and support discussions. That’s why it helps to put real numbers on coverage you’re losing and the replacement cost of comparable coverage. This is a straightforward way to show How Benefit Losses Affect the Overall Settlement without guessing. A simple example: a non-military spouse moving off TRICARE or an employer plan may face higher premiums and new deductibles; another spouse moving onto a more robust employer plan might see premiums go up but out-of-pocket costs go down. Documenting those shifts keeps negotiations grounded.
For military families, the analysis often includes BAH and BAS, which are typically non-taxable. Replacing them with taxable income or paying market-rate insurance changes take-home pay in ways that aren’t obvious at first glance. For civilians, the focus may be on COBRA versus a marketplace plan with subsidies, and how a support order interacts with who pays premiums. In both settings, it helps to pin down effective dates, ensure no gaps for ongoing prescriptions, and confirm that children’s providers remain in-network.
RPM Law can help you organize coverage options, align court orders with plan rules, and present clear, current costs so you can make informed choices about healthcare after divorce.
Who Keeps the TRICARE or other Military Benefits?
When a military family separates or divorces, the question of “who keeps the benefits” usually starts with one key point: the service member is the sponsor, and eligibility for TRICARE and other benefits flows through enrollment in DEERS. That framework doesn’t change, but who stays covered can. A current spouse is typically covered as a dependent. A former spouse’s eligibility depends on specific rules, while children generally remain eligible as dependents, regardless of the divorce.
For spouses, TRICARE coverage usually ends when the divorce is final. There are two notable exceptions based on the length of the marriage and overlapping military service. Under the 20/20/20 rule, a former spouse may keep TRICARE if the marriage lasted at least 20 years, the service member has at least 20 years of creditable service, and there was a 20-year overlap between the two. Under the 20/20/15 rule, a former spouse may qualify for limited TRICARE coverage for a year if there was at least 20 years of marriage, 20 years of service, and at least 15 years of overlap. If neither applies, the Continued Health Care Benefit Program offers a COBRA-like bridge with monthly premiums. Remarriage and access to other employer coverage can affect eligibility, so it helps to check current TRICARE guidance and confirm your status in DEERS early.
Children’s coverage is more straightforward. Children typically remain eligible for TRICARE as dependents of the sponsor until age 21, or age 23 if they’re full-time students. After that, TRICARE Young Adult can extend coverage up to age 26 with a monthly premium. A court order can say which parent maintains health insurance and how costs are shared, but it doesn’t change the underlying eligibility rules. To prevent gaps, update DEERS after the decree, verify which parent carries the ID card for appointments, and make sure ongoing prescriptions and specialists are in-network under the chosen plan.
Other military benefits follow different rules. Housing and food allowances (BAH and BAS) belong to the service member. After a separation, BAH may change based on dependency status, custody, and local policy, so expect adjustments if a dependent no longer resides with the member. Military retired pay can be divisible under federal law, but VA disability compensation is subject to different rules and isn’t the same as disposable retired pay. TRICARE access for a former spouse comes from the 20/20/20 or 20/20/15 framework, not from property division. Education benefits like a transferred Post‑9/11 GI Bill remain the sponsor’s to manage, though families sometimes address how they’re used in a settlement. Understanding the boundaries of each benefit keeps expectations realistic and helps show How Benefit Losses Affect the Overall Settlement in a clear, fact-based way.
Practical steps make a difference. Verify your DEERS record, note the date the divorce will be final, and line up replacement coverage if you won’t qualify under 20/20/20 or 20/20/15. If you plan to use the marketplace, the divorce triggers a special enrollment period, and premiums, deductibles, and networks vary widely by county. For parents, coordinate who schedules pediatric appointments, who pays premiums, and how unreimbursed expenses are handled so there’s no confusion at the pharmacy counter. For service members, track how a change in BAH or special pays influences take‑home pay and, in turn, budget discussions. RPM Law can help you compare options, document real costs, and present these changes in a way that is easy to understand and aligned with current rules.
Dependent Health Care & Insurance Transition
When a marriage ends or a service member separates from the military, dependents often have to change health coverage quickly. The transition can be smooth if you map out dates, documents, and dollars early. Most plans treat divorce, loss of eligibility, and a change of residence as qualifying life events. That means short enrollment windows—often 30 to 60 days—to add dependents to an employer plan, elect COBRA, enroll through the Health Insurance Marketplace, or, for military families, consider the Continued Health Care Benefit Program. Missing those windows can create a gap, so it helps to mark the decree date, the last day of current coverage, and the earliest start date for the new plan.
For military families, eligibility flows through DEERS. Once a divorce is final, a spouse’s TRICARE status usually ends unless the 20/20/20 or 20/20/15 rules apply. If those do not fit, CHCBP can bridge the transition with monthly premiums when elected on time. Children generally remain covered as dependents of the sponsor, with TRICARE Young Adult available up to age 26 for a premium. Keeping DEERS current, updating addresses, and confirming which parent manages ID cards helps avoid pharmacy or appointment issues. If the service member separates from active duty, dependents may need to move from TRICARE to an employer plan or a Marketplace plan; this is another qualifying life event with time-limited enrollment choices.
Civilian plans follow similar patterns with different labels. After a divorce, a former spouse usually can’t stay on the employee’s plan, but COBRA may continue coverage for a limited period (often 18 to 36 months) if elected within the deadline. Marketplace enrollment is available during a special enrollment period tied to the divorce or loss of coverage; eligibility for premium tax credits depends on updated income, household size, and filing status. If a parent changes jobs or moves counties, networks and premiums can shift, so checking provider directories and prescription formularies before you enroll is practical, not just ideal.
The court order should match real-world logistics. It can specify which parent carries primary insurance, how premiums are paid, and how unreimbursed expenses are shared. If a child sees a specific specialist or takes a maintenance medication, confirm that the chosen plan covers the provider and drug at a sustainable cost. Many families refill prescriptions and complete pending referrals before the switch date. For young adults nearing age 26, set reminders several months ahead to evaluate TRICARE Young Adult, an employer plan, or Marketplace options so there is no lapse.
Dollars matter as much as eligibility. Premiums, deductibles, co-pays, prescription costs, and travel to in-network providers add up. For military households, the loss of non-taxable allowances and the shift to taxable income can change take-home pay more than it appears on paper. For civilians, COBRA premiums can be higher than expected, while Marketplace plans may be more affordable if subsidies apply. Documenting these changes with plan summaries, insurer letters, and current premium figures is a clear way to show How Benefit Losses Affect the Overall Settlement without relying on estimates.
Communication keeps everyone on the same page. Parents can exchange plan cards and set up shared access to explanation-of-benefit statements. HIPAA authorizations for a minor’s providers can make scheduling and billing smoother when both parents are involved. If a dependent has special health needs, ask the new plan about transition-of-care provisions that allow continued treatment with an out-of-network provider for a limited time.
These are general rules, and program details can change. Reviewing deadlines, confirming eligibility in DEERS, and double-checking enrollment windows with the new plan reduces surprises. RPM Law can help you organize timelines, align orders with plan requirements, and present current, verifiable costs so the legal and financial plan matches the healthcare your family will actually use.
Veterans’ Benefits & Their Treatment in Divorce
When military service ends, the mix of pay and benefits changes. In a divorce involving a veteran, those changes affect how property is divided, how support is calculated, and what health coverage looks like going forward. The key is that not all veterans’ benefits are treated the same, and small distinctions can have big impacts on the final orders.
Start with retired pay versus VA disability compensation. Federal law lets state courts divide “disposable retired pay” as marital property. That number generally excludes any amount the retiree waived to receive VA disability compensation. In plain terms, if retired pay is reduced because of a disability waiver, the divisible share shrinks. VA disability compensation itself is not divided as property. That said, many courts consider VA disability and other tax-free payments as part of a person’s income when setting child support or spousal support. Those two ideas—property division and support—are separate questions and are often addressed differently.
Some retirees also receive concurrent receipt. Concurrent Retirement and Disability Pay (CRDP) restores a portion of retired pay that was withheld due to a disability waiver. Because CRDP is essentially restored retired pay and is taxable, it is commonly treated like retired pay in property discussions. Combat‑Related Special Compensation (CRSC), by contrast, is a separate, tax‑free payment tied to combat‑related disabilities and is generally not treated as divisible retired pay. Knowing which program applies helps avoid mixing apples and oranges during negotiation.
Support enforcement has its own rules. Federal law allows certain withholdings from government payments to satisfy child support or spousal support. Whether VA disability is subject to garnishment or apportionment depends on the source of the veteran’s payments and whether there was a waiver of retired pay. It’s worth verifying the exact benefit type and pay source so any wage withholding or income withholding order can be tailored correctly and processed without delay.
The Survivor Benefit Plan (SBP) is another frequent topic. SBP can provide a stream of income to a former spouse if the retiree passes away first, but coverage must be elected and paid for. Elections involve deadlines, including a one‑year window for a “deemed election” if the court orders former‑spouse coverage. The cost is deducted from retired pay, and choosing a base amount affects both the premium and the potential benefit.
The Thrift Savings Plan (TSP) is handled differently from retired pay and disability. Dividing a TSP typically requires a court order that meets federal plan requirements. It’s helpful to identify a valuation date, note any outstanding TSP loans, and specify whether the award is a percentage or a fixed dollar amount. Rollovers, taxes, and timing should be spelled out to reduce post‑judgment confusion.
Health coverage can also shift. VA health care is not the same as TRICARE, and eligibility rules differ. A retiree may still have TRICARE, while a veteran who is not retired may rely on VA care for personal coverage; former spouses generally do not receive VA health benefits. Children’s eligibility usually follows the military sponsor for TRICARE purposes, while civilian marketplace plans or employer coverage may be needed for others. Coordinating effective dates keeps prescriptions and ongoing care on track.
Education benefits deserve attention too. Transferred Post‑9/11 GI Bill benefits remain under the service member’s control. A divorce decree cannot force the agency to transfer benefits, but families often address tuition, books, and housing costs in their agreement so expectations are clear. If a child plans to use these benefits, timelines and eligibility rules should be reviewed early.
Documentation makes the numbers real. A clear file—Retiree Account Statements, VA award letters showing rating and effective dates, DFAS tax forms, and notices about CRDP or CRSC—helps everyone see what is actually paid today and what may change. For example, if a retiree later becomes eligible for CRDP, the divisible share of retired pay might increase; addressing potential adjustments in the agreement can minimize future disputes.
Budgeting shows How Benefit Losses Affect the Overall Settlement. If the veteran’s retired pay is reduced by a disability waiver, the marital portion available for division may be smaller than expected. If TRICARE is not available to a former spouse, replacement insurance premiums and out‑of‑pocket costs can affect support discussions. Tax treatment matters, too: retired pay is typically taxable, while VA disability is not, which changes take‑home math. RPM Law can help organize these moving parts so the property and support terms reflect what the family will actually experience after the decree.
