{"id":1552,"date":"2025-11-19T16:13:35","date_gmt":"2025-11-19T16:13:35","guid":{"rendered":"https:\/\/www.patriotslaw.com\/family-law\/?p=1552"},"modified":"2025-11-19T16:13:38","modified_gmt":"2025-11-19T16:13:38","slug":"understanding-survivor-benefit-plans-sbp-during-divorce","status":"publish","type":"post","link":"https:\/\/www.patriotslaw.com\/family-law\/understanding-survivor-benefit-plans-sbp-during-divorce\/","title":{"rendered":"Understanding Survivor Benefit Plans (SBP) During Divorce"},"content":{"rendered":"\n

When a couple gets divorced, the spouses\u2019 retirement assets and benefits may qualify as marital property subject to division. When one spouse serves in the military, they may receive military retirement pay. Dividing this retirement benefit may implicate parties\u2019 rights under the Survivor Benefit Plan. However, what happens to spouses\u2019 rights under the Survivor Benefit Plan (SBP) when dividing property in a military divorce<\/a>? Understanding elections under the SBP in a military divorce can help you protect your rights or options, whether you served in the military or divorce a spouse who served. <\/p>\n\n\n\n

What Is the Survivor Benefit Plan?<\/h2>\n\n\n\n

Although military retired pay typically ends upon a veteran\u2019s death, the Survivor Benefit Plan<\/a> allows veterans to provide a lifetime annuity to their dependents after their death. This annuity provides a percentage of the veteran’s military retirement pay. Veterans pay premiums from their retirement pay to obtain SBP coverage. Spouses may receive up to 55 percent of a veteran\u2019s retired pay, and eligible children may receive up to 55 percent, although veterans may elect a lower percentage.<\/p>\n\n\n\n

When a veteran gets divorced, they must elect to transfer SBP rights to their former spouse within the later of (i) their retirement date or (ii) one year after the final divorce decree. A former spouse may also submit a \u201cdeemed election\u201d within one year of the parties\u2019 divorce if the final divorce decree ordered the veteran to elect former-spouse coverage under their SBP.<\/p>\n\n\n\n

SBP and Divorce: Key Legal Considerations<\/h2>\n\n\n\n

When a veteran who elected SBP coverage at retirement gets divorced, the other spouse’s SBP rights end upon the parties’ divorce. However, the veteran can elect to convert the SBP to former spouse coverage (or the former spouse may notify DFAS of a court order requiring the election of former spouse coverage) to reinstate coverage. <\/p>\n\n\n\n

Parties may negotiate a former spouse election for SBP as part of a divorce settlement. Alternatively, a court presiding over the couple\u2019s divorce may order a veteran to make a former spouse election for their SBP coverage as part of the property division determination in the divorce case. However, veterans negotiating or litigating a former spouse election should bear in mind that electing former spouse coverage for SBP typically precludes coverage for the veteran’s new spouse should they remarry.<\/p>\n\n\n\n

Common Challenges and Mistakes<\/h2>\n\n\n\n

Some of the top issues or oversights that may involve SBP coverage in divorce cases include:<\/p>\n\n\n