Key points:

Division of Military Retirement Pay: State courts decide, based on state laws, how much of the retirement pay the former spouse is entitled to. The awarded amount is typically computed based on an awarded percentage of marital share. Marital share is equal to the years of marriage overlapping military service divided by the total number of years the member served. For example, if a couple were married for 14 years of a 22-year military career, the marital share would be 63.63. The spouse’s entitlement would be the marital share of 63.63 times the percentage awarded. So, if the court ordered 50% of the marital share, the spouse would receive 31.82% of the disposable retired pay. Courts may also award a specified dollar amount to be paid.

Direct Payments: If the marriage lasted at least 10 years overlapping with 10 years of military service, the former spouse can receive their share of retirement pay directly from the Defense Finance and Accounting Service (DFAS). Retired benefits received by an ex-spouse under the USFSPA are federally taxable. These payments are considered income and are subject to federal income tax laws, and DFAS will issue a tax statement to the recipient for reporting purposes.

Other Benefits: State law may also affect decisions regarding survivor benefits, health care, and other entitlements under the USFSPA.

Learn more about USFSPA at Defense Finance and Accounting Service USFSPA and Chapter 29 of the DoD Financial Management Regulation.

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