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Military Retirement Division
Military retirement pay is often the most valuable asset in a military divorce — and one of the most complex to divide. Our attorneys have the specialized knowledge to protect your rights under federal and Texas law.
Why Military Retirement Is Different
Unlike a civilian 401(k), military retirement pay is governed by federal law — specifically the Uniformed Services Former Spouses' Protection Act (USFSPA). Texas courts can treat military retirement as community property, but the rules for dividing it and receiving direct payment from DFAS are strict.
Getting the language wrong in your divorce decree can cost you years of payments or eliminate your right to direct pay entirely. Our attorneys know exactly how to draft orders that hold up with DFAS and protect your long-term financial security.
Key Issues We Handle
- Calculating the marital share of retirement pay
- Drafting DFAS-compliant court orders
- The 10/10 Rule and direct pay eligibility
- Survivor Benefit Plan (SBP) elections
- Disability pay vs. retirement pay distinctions
- VA disability offset issues
- Reserve and National Guard retirement (20-year rule)
- Concurrent Retirement and Disability Pay (CRDP)
Understanding the 10/10 Rule
One of the most misunderstood rules in military divorce — and one that directly affects how you receive your share of retirement pay.
What the 10/10 Rule Means
- The marriage must have overlapped with at least 10 years of creditable military service
- If this threshold is met, DFAS can pay your share directly to you
- If not met, you are still entitled to a share — but the service member must pay you directly
- The rule affects payment method only, not your right to the retirement
Why It Matters for Your Case
- Direct DFAS payment is more reliable and enforceable than depending on a former spouse
- Missing the threshold means enforcement falls on you if payments stop
- Proper documentation of service overlap is critical at the time of divorce
- Our attorneys verify eligibility and structure orders accordingly
The Survivor Benefit Plan (SBP)
The Survivor Benefit Plan is a critical — and often overlooked — part of military retirement division. SBP provides a monthly annuity to a designated beneficiary if the retired service member dies first.
Without a proper SBP election in your divorce decree, your share of retirement pay could disappear entirely when your former spouse passes away. The election must be made at the time of divorce and cannot be changed later.
Our attorneys ensure SBP coverage is addressed in every military divorce we handle, protecting your financial security for the long term.
Critical Deadline
SBP elections must be addressed in the divorce decree. Once the divorce is final and the election window closes, it cannot be reopened. This is one of the most common — and costly — mistakes in military divorces.
SBP Checklist for Former Spouses
- Confirm SBP election is required in the divorce decree
- Verify the "former spouse" coverage category is specified
- Ensure DFAS is notified within one year of the divorce
- Understand the cost (premium deducted from retirement pay)
- Know what happens if the service member remarries
VA Disability Pay & the Disability Offset
VA disability compensation is not divisible as community property under federal law. However, when a service member waives retirement pay to receive VA disability pay — which is tax-free — it can significantly reduce the amount available for division.
This is known as the disability offset, and it has been the subject of major litigation. The U.S. Supreme Court's decision in Howell v. Howell (2017) confirmed that states cannot order a service member to indemnify a former spouse for reductions caused by a VA disability waiver.
Understanding how disability pay interacts with retirement division is essential to protecting your financial interests. Our attorneys analyze each client's situation carefully and structure agreements that account for these risks.
Protect Your Share of Military Retirement
The decisions made in your divorce decree are permanent. Let our attorneys make sure they're right.