More Than a Paycheck: A Guide to Military Retirement and Divorce in Washington State

For service members and their families, a military pension isn't just a number on a statement; it represents a lifetime of dedication, sacrifice, and service. When a marriage ends, the question of how this hard-earned asset will be divided is often the most significant and stressful part of the process.

Military retirement division is governed by a complex web of federal and state laws that can be confusing and fraught with myths. Understanding the fundamentals is the first step toward protecting your financial future.

The Foundation: The USFSPA

The federal law that allows states to divide military retired pay in a divorce is the Uniformed Services Former Spouse Protection Act (USFSPA). It's important to know what the USFSPA does—and what it doesn't do.

• It DOES: Authorize Washington courts to treat disposable military retired pay as community property.

• It DOES NOT: Automatically entitle a former spouse to a portion of the retirement. The division must be written into a court order, such as your Decree of Dissolution.

Busting the Biggest Myth: The "10/10 Rule"

Exploring Military Pension Division in Divorce: Delve into the complexities of military pension division, covering aspects like the USFSPA and the "10/10 Rule," in our latest blog post. Discover how to safeguard your future by effectively managing the financial aspects of divorce, ensuring benefits, and more.

One of the most persistent misconceptions in military divorce is the "10/10 Rule." Many people mistakenly believe that if a couple wasn't married for at least 10 years of the service member's career, the former spouse gets nothing.

This is false.

The 10/10 Rule has nothing to do with a former spouse's entitlement to a share of the pension. It only determines the method of payment.

• If the marriage lasted 10+ years overlapping with 10+ years of creditable military service, the Defense Finance and Accounting Service (DFAS) can make direct payments to the former spouse.

• If the 10/10 rule is NOT met, the former spouse is still entitled to their court-ordered share of the pension. However, the service member is responsible for making those payments directly to the former spouse each month.

A knowledgeable attorney can ensure that even if the 10/10 rule isn't met, your divorce decree includes enforcement provisions to guarantee you receive the funds you are owed.

How is the Pension Actually Divided in Washington?

Washington is a community property state. This means that assets acquired during the marriage are generally considered to belong to both spouses. For a military pension, the community share is calculated based on the portion of the career that occurred during the marriage.

Here’s a simplified example:

• A service member serves for 20 years.

• They were married for 15 of those years.

• The community property portion of the pension is 15/20, or 75%.

• The former spouse is generally entitled to half of that community share, which would be 37.5% of the service member's total monthly retired pay.

Don't Forget the TSP and SBP

Military retirement is more than just the monthly pension. Two other critical assets must be addressed:

1. Thrift Savings Plan (TSP): The TSP is a retirement savings and investment plan, similar to a civilian 401(k). The portion of the TSP that was contributed and earned during the marriage is community property and must be divided with a specific court order.

2. Survivor Benefit Plan (SBP): The SBP is an annuity that pays a portion of the retired pay to a designated survivor after the service member's death. A pension award to a former spouse ends when the service member dies. The only way to continue payments is to elect "Former Spouse SBP Coverage." This is not automatic and must be explicitly handled in the divorce decree. Missing this step can have devastating financial consequences for the former spouse.

The Final Step: The Right Paperwork

Getting your divorce decree is not the final step. To divide military retirement assets, DFAS requires a specific court order, often called a Military Pension Division Order (MPDO) or similar qualifying order. This document must contain precise language to be accepted and implemented by DFAS. A small error can lead to rejection, costly delays, or the loss of benefits.

Navigating the division of military retirement requires an attorney who speaks the language of DFAS and understands the unique laws affecting families at JBLM and beyond. Protecting your future starts with getting the right advice today.

Disclaimer: This blog post is for informational purposes only and does not constitute legal advice. The division of military retirement is a complex issue that depends on the specific facts of your case. You should consult with an attorney for advice regarding your individual situation.