Determining the portion of a military retiree’s pension that may be awarded to a former spouse involves a multi-step process. This calculation often begins by identifying the “disposable retired pay,” which is generally the total monthly retired pay less any amounts waived to receive disability benefits or paid as a result of court orders. A common method for dividing the pension uses a fraction where the numerator is the number of years of marriage overlapping with military service, and the denominator is the total number of years of military service. The result is then multiplied by the disposable retired pay to determine the ex-spouse’s share. For example, if a marriage lasted 10 years concurrently with military service, and the service member served 20 years total, the fraction would be 10/20, or 1/2.
Understanding the financial implications of divorce for both parties is crucial, especially when military retirement benefits are involved. Accurately assessing the ex-spouse’s potential entitlement helps ensure equitable distribution of marital assets. The Uniformed Services Former Spouses’ Protection Act (USFSPA) grants state courts the authority to treat military retired pay as marital property, allowing for its division in divorce proceedings. This legislation addresses concerns regarding the financial security of former spouses who significantly contributed to the service member’s career, offering a mechanism for continued financial stability after the marriage dissolves.
