Divorce is rarely easy. But for military families, including active-duty servicemembers, military spouses, and retired Veterans, it can introduce a complicated layer of financial decisions that affects benefits, pensions, healthcare, and long-term financial security.
If you’re navigating a military divorce or contemplating one, you’re not alone. Not only are servicemembers married at higher rates than civilians, but the divorce rates are higher as well. Although the decision to part ways is an emotional one, it’s critical to understand what’s at stake and how your military status may impact the division of assets and ongoing obligations. Here are key points from the military financial professionals from AAFMAA Wealth Management & Trust LLC (AWM&T), with helpful links to resources at the end.
Whether the servicemember is still serving or already retired, military retirement pay is considered marital property and is often subject to division in a divorce settlement.
Key points to know:
• The 10/10 Rule: If the marriage lasted at least 10 years, with at least 10 years overlapping military service, the military spouse may be eligible for their share of the servicemember’s military retirement pay directly from the Defense Finance and Accounting Service (DFAS).
• Retired Veterans’ Pensions Still Count: Even if the servicemember has already retired and is receiving their pension, that income is still subject to division according to state laws.
• VA Disability Pay: In general, VA disability compensation is not considered divisible marital property. However, it can still affect spousal support or alimony calculations.
For both active duty and retired Veterans, military retirement benefits often represent one of the most significant marital assets. Negotiating how these benefits are divided is often one of the most complex and emotional aspects of military divorce.
For military spouses, divorce can affect more than just income. It often changes your eligibility for key military benefits such as healthcare, housing, and access to military installations, regardless of whether the servicemember is active duty or retired.
TRICARE Eligibility:
• If you meet the 20/20/20 rule (20 years of marriage, 20 years of service, and 20 years overlapping), you may retain TRICARE benefits after divorce.
• If you don’t qualify for 20/20/20, you may be eligible for up to 36 months of temporary healthcare under the Continued Health Care Benefit Program (CHCBP).
Base Privileges: Access to base Commissaries and Exchanges generally ends after divorce, unless the 20/20/20 rule applies.
Survivor Benefit Plan (SBP): Divorce decrees can mandate that a former spouse be designated as a beneficiary under the SBP, ensuring continued benefits if the retired servicemember passes away.
For Veterans who are no longer serving, these decisions can still have a substantial impact on both parties’ financial well-being well into retirement.
Military pay and Veterans’ retirement income often include several components that factor into divorce settlements and child support calculations:
• Base pay, Basic Allowance for Housing (BAH), bonuses, and special pays (for active duty).
• Military retirement pensions (for retirees).
• VA disability payments may be excluded from the division of finances, but can still be considered in support calculations.
• State laws govern how child support and alimony are calculated, but courts often review all sources of income, whether the servicemember is retired or still serving.
Please be advised that failure to comply with child support obligations can result in legal consequences both in civilian courts and under the Uniform Code of Military Justice (UCMJ) for active duty members.
No matter where you are in your military or post-military career, a military divorce demands careful financial planning to protect your future.
Post-Divorce Financial Action Items:
☐ Update beneficiaries on all financial accounts and insurance policies.
☐ Review your estate plan, power of attorney, and healthcare directives.
☐ Adjust your financial goals to reflect new income and expenses.
☐ Reevaluate your retirement strategy, especially if military pensions or survivor benefits are involved.
☐ Consult with financial professionals who specialize in military and Veteran-specific financial planning.
At AAFMAA Wealth Management & Trust LLC (AWM&T), we’ve helped countless active-duty servicemembers, Veterans, and military spouses navigate major life transitions like divorce. With decades of experience serving the military community, we understand how military benefits, retirement pay, and complex regulations impact your financial future.
We provide solutions exclusively to those who have served through financial planning, investment management, and trust services. Let us help you create clarity and stability during this difficult time. Call 910-307-3500 or connect with a Relationship Manager today.
Founded in 2012, AAFMAA Wealth Management & Trust LLC (AWM&T) was created to meet the distinct financial needs of military families. We proudly deliver experienced, trustworthy financial planning, investment management, and trust administration services – all designed to promote lasting security and independence.
We are proud to share the mission, vision, and values of Armed Forces Mutual, our parent company. We consistently build on the Association’s rich history and tradition to provide our Members with a source of compassion, trust, and protection. At AWM&T, we are committed to serving as your trusted fiduciary, always putting your best interests first. Through Armed Forces Mutual's legacy and our financial guidance, we provide personalized wealth management solutions to military families across generations.
DFAS - Garnishment of Pay:
https://www.dfas.mil/garnishment/usfspa/legal/
DFAS - Former Spouses & Retirement Pay:
https://www.dfas.mil/retiredmilitary/manage/garnishments/usfspa/
TRICARE - Divorce and TRICARE:
https://www.tricare.mil/LifeEvents/Divorce
Continued Health Care Benefit Program (CHCBP) Information:
https://www.humanamilitary.com/member/benefits-and-eligibility/chcbp/
Survivor Benefit Plan (SBP) — Former Spouse Coverage:
https://www.dfas.mil/retiredmilitary/provide/sbp/sbpformer/
VA Disability and Divorce:
https://www.va.gov/disability/
Note: VA disability pay is generally not divisible in divorce, per U.S. federal law, but may affect alimony and child support. Most state-specific family law or attorney sites will provide detailed guidance on this nuance.
Military OneSource — Child Support and Alimony:
https://www.militaryonesource.mil/military-life-cycle/separation-divorce/child-support-and-alimony/
Military OneSource — Divorce Overview:
https://www.militaryonesource.mil/military-life-cycle/separation-divorce/
Uniformed Services Former Spouses’ Protection Act (USFSPA):
https://www.law.cornell.edu/uscode/text/10/1408
Armed Forces Legal Assistance Locator (find legal help):
https://legalassistance.law.af.mil/
Published 6/12/2025. To the best of our ability, the information is correct at the time of publishing.