Property division often dominates concerns during divorce proceedings. People worry about who keeps the marital home or who assumes responsibility for substantial debts.
Retirement accounts and pensions are often a source of concern and anxiety during divorce proceedings. Under community property rules, spouses often split their retirement resources, including 401(k) accounts held in the name of one spouse and even pensions.
Military benefits, including military pensions, are subject to certain unique rules. Are military pensions divisible under community property rules when service members divorce?
Military rules govern distribution, not division
Confusion about what happens during a military divorce is relatively common. Spouses often misunderstand their rights and protections, especially because people share misinformation as though it were fact. Many people have heard that there is a military rule governing pensions during divorce.
Specifically, the 10/10 rule applies when one spouse has a military pension to address. Regardless of whether the 10/10 rule applies to the pension or not, state statutes govern the division of marital property.
Any pension benefits accrued during the marriage are likely subject to community property rules. State law determines how spouses or the courts divide the pension. The 10/10 rule influences the details of that split.
The 10/10 rule allows the non-military spouse to receive direct pension payments from the Defense Finance and Accounting Service (DFAS) if the marriage lasted at least 10 years and the military spouse had 10 years of qualifying service during the marriage. Otherwise, the spouses must establish an alternate means of addressing the pension in their property division settlement.
Discussing financial concerns with an attorney familiar with community property rules and military divorce can be helpful. Both military service members and their spouses may need insight into the unique rules that govern benefits, including pensions, when service members divorce, and that’s okay.