Dividing assets during a divorce can be complex, especially when one or both spouses have served in the military. Military retirement pay is a valuable asset, and it is important for both military members and their spouses to understand how it is divided in an Arizona divorce. Arizona follows community property laws, which impact how military pensions and other assets are handled in divorce proceedings.
Here’s what this article will cover:
- Understanding Community Property in Arizona and Its Impact on Military Pensions
- How Military Retirement Pay is Divided in an Arizona Divorce
- The 10/10 Rule and Federal Guidelines for Military Pension Division
- What Happens to Military Benefits After Divorce?
- Protecting Your Interests in an Arizona Military Divorce
- 5 Frequently Asked Questions About Military Pensions and Divorce
- Contact a Family Law Attorney from the Law Offices of Daniel Hutto
This article explains how military pensions are treated under Arizona law, the factors that determine how they are divided, and what former spouses of military members should know about their rights to military benefits. Whether you are an active-duty service member, a retired military member, or a military spouse facing divorce, knowing your rights and obligations regarding military retirement pay can help you make informed decisions.
How an Arizona Family Law Attorney Can Help
Our Phoenix Family Law Attorneys are Here to Help!
Understanding Community Property in Arizona and Its Impact on Military Pensions
Arizona is a community property state, meaning that most assets acquired during the marriage—including military pensions—are considered joint property.
This rule applies regardless of which spouse earned the income or acquired the asset during the divorce.
Under Arizona law, when a military member earns a pension during the marriage, the portion accumulated during that time is subject to division. However, any military service completed before or after the marriage is considered separate property and not subject to division in the divorce, including the spouse’s military retirement.
It is important to note that the Arizona divorce court does not automatically divide military pensions 50/50.
The division depends on several factors, including the length of the marriage, the contributions of each spouse, and whether other assets are used to offset the division of the pension.
How Military Retirement Pay is Divided in an Arizona Divorce
Military retirement pay is divided based on the portion of service time completed during the marriage. A common method used in Arizona is the “time rule formula,” which calculates the former spouse’s share based on the number of months of creditable military service during the marriage divided by the total months of service at the time of retirement.
For example, if a service member served for 20 years and was married for 10 of those years, the former spouse would be entitled to half the military pension. If the military member served longer, the former spouse’s share would decrease proportionally.
Arizona divorce courts may issue a final divorce decree that specifies how military retired pay, including the spouse’s military retirement, should be divided. If the service member is already retired, the court may order a fixed dollar amount or percentage of the disposable retired pay to be paid to the former spouse.
The 10/10 Rule and Federal Guidelines for Military Pension Division
The division of military pensions in divorce must also comply with federal law. The Uniformed Services Former Spouses’ Protection Act (USFSPA) allows state courts to treat military retirement pay as property, not just income, which can include retirement benefits.
One key rule under the USFSPA is the 10/10 Rule:
- If the couple was married for at least 10 years and the military spouse served at least 10 years of creditable service during the marriage, the Defense Finance and Accounting Service (DFAS) can send the former spouse’s share of the pension directly.
- If the marriage lasted fewer than 10 years, the former spouse must collect their share directly from the service member instead of DFAS distributing payments.
This rule does not limit a former spouse’s entitlement to a share of military retirement—it only affects how payments are made.
What Happens to Military Benefits After Divorce?
Divorce may impact a former spouse’s access to military benefits, including:
- Healthcare Benefits and retirement benefits are essential for military families. Former spouses who meet the 20/20/20 rule (20 years of marriage, 20 years of military service, 20 years overlapping) may continue to receive TRICARE benefits.
- Base Privileges: Former spouses who qualify under the 20/20/20 rule may also retain commissary and exchange privileges.
- Survivor Benefit Plan (SBP): A former spouse may be awarded SBP coverage in a divorce decree, allowing them to continue receiving benefits if the military member passes away.
- Other Military Benefits: Military ID cards, housing, and other benefits typically end after divorce unless specific conditions are met.
Protecting Your Interests in an Arizona Military Divorce
If you are facing a military divorce in Arizona, consider the following steps to protect your financial interests:
- Consult a Family Law Attorney: An attorney experienced in military divorce can help ensure fair property division and protect your rights.
- Understand Your Pension Rights: Military spouses should understand their entitlements under Arizona law and the USFSPA.
- Negotiate a Fair Settlement: In some cases, offsetting assets may be used instead of splitting a military pension.
- Consider SBP Coverage for your spouse’s military retirement.: A former spouse may request SBP coverage to secure financial stability.
- File the Proper Paperwork with DFAS: If eligible, ensure all necessary paperwork is filed correctly to receive direct payments from DFAS.
5 Frequently Asked Questions About Military Pensions and Divorce
1. Can a military pension be divided if the marriage lasted less than 10 years?
Yes, Arizona courts can still award the former spouse a portion of the pension. However, payments must come directly from the service member instead of DFAS to ensure the proper distribution of retirement benefits.
2. What happens if a military member waives pension payments for disability benefits?
If a military member elects to receive disability benefits, the amount of the pension subject to division can be reduced. Courts may adjust spousal support or other assets to compensate.
3. Does Arizona require an equal split of military pensions?
Not necessarily. The court may divide pensions based on fairness, considering factors such as other assets and financial circumstances.
4. Can a military spouse receive alimony and a share of the pension?
Yes, Arizona courts can, depending on the case, award both spousal support and a share of the military pension.
5. Can a divorce agreement include a waiver of military pension rights?
A military spouse may waive their right to a pension in exchange for other assets or financial considerations.
Contact a Family Law Attorney From the Law Offices of Daniel Hutto
If you are facing a military divorce in Arizona, working with a divorce attorney who understands Arizona’s community property laws and federal military regulations is crucial. We have extensive experience handling military divorces and pension division cases at the Law Offices of Daniel Hutto.
We offer personalized guidance and legal representation to protect your financial future. Call our law firm at 602 536-7878 for assistance or visit our website at azcriminalandfamilylaw.com to schedule a consultation with a knowledgeable divorce attorney.
