Just as service members are governed by their own set of rules and
regulations relating to the conditions of their military service,
military divorces have their own unique considerations. There also are
many myths and misconceptions that have become accepted as "truths"
within the military community. For this reason, it is crucial that you
be represented by an attorney with military divorce experience.
Here
are a few of the problem areas:
~There is a myth that a spouse
is not entitled to a portion of the service members' retirement until
the parties have been married for 10 years. This only concerns when
direct payment will be made from the Finance Center. After 10 years the
Finance Center will pay the spouse their portion directly. The spouse is
entitled to 50% of the "marital portion" (part during which marriage
and active duty service overlap) unless all or part of this is waived.
~The
Survivors' Benefit Plan (SBP) which provides coverage for the surviving
non-military spouse for his/her share of the retirement often is
ignored or the documents are not sent in within the one year period. In
some cases, it may be more cost-effective to purchase private insurance
coverage. Also, SBP ends if the spouse remarries before age 55 but can
be reinstated if that marriage ends in death, divorce or annulment. Do
not have the service member agree to name the former spouses as
beneficiary under his/her SGLI because this can be changed (Ridgeway
case from US Supreme Court). The issue should be addressed in some
manner, however.
~Do not forget another retirement component that
may exist-Thrift Savings Plan(TSP). Voluntary contributions can be
made and accumulate tax free.
~Remember the VA waiver. The spouse
is not entitled to any of the disability pay that is received from the
VA that is set-off dollar for dollar against the retirement.
~Do
not be hasty in finalizing a divorce. Consider the implications for
current and future benefits. These days especially you cannot
underestimate the value of medical coverage!
