Military Divorce: What Happens to the Money

The short version

Military divorce runs on federal rules layered over state law, and the money side is where most mistakes happen. State courts can divide military retired pay as property under the USFSPA. The famous 10/10 rule only controls whether DFAS cuts the check directly. It does not decide whether your ex-spouse gets a share. Survivor Benefit Plan coverage for a former spouse has a hard one-year election deadline, the TSP needs its own special court order, and BAH, ID cards, and TRICARE all change when the decree is final. Get a lawyer who actually knows military divorce before you sign anything.

The pension: USFSPA and the real meaning of 10/10

The Uniformed Services Former Spouses' Protection Act (USFSPA) lets state courts treat military retired pay as marital property and divide it in a divorce. For members not yet retired, the division is generally calculated on your rank and years of service at the time of divorce (the "frozen benefit" rule), not whatever you retire at later.

• 10/10 is about the payment method, not entitlement: if the marriage overlapped 10 years of creditable service, the former spouse can apply to DFAS for direct payment of their court-ordered share. Miss 10/10 and a court can still award a share. The member just pays it personally.
• There's a cap on direct pay: DFAS will send a former spouse no more than 50 percent of disposable retired pay as a property division (up to 65 percent if child support or alimony garnishments stack on top).
• Nothing is automatic: the court order has to award the share in language DFAS will accept, and the former spouse has to submit it with DD Form 2293.

The 10/10 rule decides who cuts the check, not whether your ex gets a share.

Source: DFAS

SBP: the one-year clocks that quietly forfeit coverage

If the divorce decree requires Survivor Benefit Plan coverage for your former spouse, someone has to actually file the paperwork. Former-spouse SBP is not automatic, and the deadlines are brutal.

• The member has one year: former-spouse coverage must be elected on DD Form 2656-1 within one year of the divorce decree.
• The former spouse has a backstop, also one year: if the member fails or refuses to file, the former spouse can submit a "deemed election" (DD Form 2656-10), but DFAS must receive it within one year of the court order. Miss both windows and the coverage is gone for good.

If you're keeping SBP for a new spouse later, that has its own election windows. Read the basics in our SBP explainer before you negotiate.

Source: DFAS

20/20/20: who keeps base benefits

Whether a former spouse keeps military benefits depends on three numbers: years of marriage, years of service, and years of overlap.

• 20/20/20, full package: 20 years married, 20 years of creditable service, 20 years of overlap. The unremarried former spouse keeps TRICARE, commissary, and exchange privileges with their own ID card.
• 20/20/15, one year of TRICARE: same marriage and service, but only 15 years of overlap gets one year of transitional TRICARE, no shopping privileges.
• Everyone else: benefits end when the divorce is final. Kids keep their eligibility either way. Compare options in our TRICARE guide.

Source: Military OneSource

TSP, BAH, and the practical fallout

The retired-pay order does not touch your TSP. The TSP is divided only by a Retirement Benefits Court Order (RBCO). A QDRO written for a civilian 401(k) will bounce.

• Get the RBCO right: it must name the Thrift Savings Plan specifically and award a dollar amount or percentage as of a specific date. The TSP charges a processing fee, so budget for it.
• BAH changes: lose your dependents and you drop to the single rate, but if you pay child support you may still draw BAH at the with-dependents rate depending on custody and service rules. Check your LES the month after the decree.
• Update everything: DEERS, SGLI beneficiaries, TSP beneficiaries, wills, and powers of attorney. Divorce does not automatically remove an ex from your SGLI or TSP beneficiary forms.

Source: Thrift Savings Plan

Get a lawyer who speaks military

Installation legal assistance is free and a good orientation, but they can't represent you in divorce court. Hire a civilian attorney who has handled USFSPA cases, frozen-benefit calculations, SBP elections, and RBCOs. A lawyer who has never heard of DD Form 2656-10 can cost your family a lifetime annuity with one missed deadline.

Do this now

1. Pull your numbers: retirement points or years of service, TSP balance, SBP status, and your LES before negotiations start.
2. Calendar the one-year SBP deadline: the day the decree is signed, set a reminder, whichever side of the divorce you're on.
3. Insist on an RBCO for the TSP: don't let anyone submit a generic QDRO.
4. Update DEERS and beneficiaries within 30 days: ID cards, SGLI, TSP, and your will.
5. Interview attorneys about military cases specifically: ask how many USFSPA divisions they've drafted.

FAQ

My marriage lasted 8 years. Does my ex get nothing from my retirement?

Not necessarily. A state court can award a share of retired pay regardless of the 10/10 rule. 10/10 only determines whether DFAS pays the former spouse directly. Under 10 years of overlap, the member pays the awarded share personally.

Does my ex automatically get part of my TSP?

No. The TSP is only divided if a valid Retirement Benefits Court Order awards a share. If your decree is silent on the TSP, it stays yours, which is exactly why both sides need lawyers who ask about it.

I'm the former spouse. What happens to my TRICARE?

If you meet 20/20/20 and don't remarry, you keep TRICARE indefinitely under your own eligibility. If you meet 20/20/15, you get one year. Otherwise coverage ends with the divorce, though you can buy temporary coverage through the Continued Health Care Benefit Program.

Sources & links

• DFAS, USFSPA frequently asked questions: dfas.mil
• DFAS, Applying for former spouse payments: dfas.mil
• TSP, Divorce, annulment, and legal separation: tsp.gov
• Military OneSource, Rights of divorced military spouses: militaryonesource.mil
• TRICARE, Former spouses: tricare.mil