When a couple gets divorced, they must split their marital property, which usually includes all assets acquired during the marriage. A spouse who served in the military may have pensions and benefits that qualify as marital property. However, Maryland divorce courts must contend with unique laws and legal circumstances when dividing military pensions or benefits. Understanding the unique rules for dividing military pensions and benefits can help you protect your financial interests in a divorce.
Understanding the Uniformed Services Former Spouses’ Protection Act
The division of many military pensions and benefits for current and former servicemembers in divorce must comply with the requirements of the Uniformed Services Former Spouses’ Protection Act, which permits state courts to award a portion of a servicemember’s retirement pay or other eligible benefits to a former spouse. The Act also limits courts to awarding no more than 50 percent of a servicemember’s pension or retirement pay to a former spouse, unless a servicemember also has child support or alimony obligations.
Division of Military Pensions in Maryland
As an “equitable distribution” state, Maryland divides marital assets fairly between spouses in divorce. A “fair” division does not always mean an equal division. Maryland considers military pensions earned during marriage as a marital asset subject to division. A court may award the non-servicemember spouse a percentage of the servicemember’s pension, proportional to the years of service that occurred during the marriage. Less commonly, a court may award a spouse a fixed dollar amount from a military pension.
The Defense Financial and Accounting Service, which manages military pensions, may make direct payments of pension benefits to a non-servicemember spouse if their marriage lasted at least ten years, overlapping with at least ten years of the veteran’s service.
Other Military Benefits in Divorce
Other military benefits that may become part of a divorce proceeding include:
- Survivor Benefit Plan: The military allows servicemembers to elect SBP coverage for former spouses; however, doing so precludes coverage for a servicemember’s future spouse. SBP can provide continued income for a former spouse after the servicemember’s death.
- Healthcare benefits: Former spouses can become eligible for TRICARE benefits under specific circumstances. The 20-20-20 rule extends eligibility when the servicemember had at least 20 years of creditable service, the former spouse’s marriage to the servicemember lasted at least 20 years, and 20 years of marriage overlapped with 20 years of creditable service. The 20-20-15 rule extends coverage for one year after the date of divorce when the servicemember had at least 20 years of creditable service, the former spouse’s marriage to the servicemember lasted at least 20 years, and 15 years of marriage overlapped with the 20-plus years of creditable service.
- Thrift Savings Plan: Military servicemembers can open a Thrift Savings Plan to save and invest for retirement. Like with retirement accounts in private employment, a divorce can divide benefits in the account between the servicemember and their spouse.
Practical Challenges and Considerations
Other challenges and considerations that couples must navigate when dividing military pensions and benefits in divorce include:
- Ensuring that court orders, such as Retirement Benefits Court Orders, have precise language to ensure the correct division of military pensions and VA benefits
- Dealing with delays and extensive administrative requirements
- Determining how disability pay, which courts cannot divide, may affect division pension benefits.
Contact a Military Lawyer Today
When you or your spouse has served in the military, you may have pensions or benefits that you and your spouse must divide in your divorce case. Contact Patriots Law Group today for a confidential consultation with a military family lawyer to learn more about the unique legal complexities of dividing military pensions and benefits in a Maryland divorce.