Dividing Military Pensions

The Federal Uniformed Services Former Spouses Protection Act (USFSPA) gives state courts authority to divide military retirement benefits under local laws. This means that your military pension is subject to Illinois’ equitable property division laws. However, military pensions are not handled exactly the same as a civilian pension or 401k, so it is important to work with an attorney who has experience dividing military pensions for Scott Air Force Base Families.

​The USFSPA is a very complex law, and while it provides that your pension can be divided per Illinois law, special considerations apply, including:

• The 10x10 rule: Many people believe the myth that if you were married to a military member for 10 years or more, you can take half of the pension. This is not true. However, this myth comes from the 10x10 rule. A nonmilitary spouse can only receive payments directly from the pension if at least 10 years of the marriage overlapped with military service. Spouses who do not meet this requirement can still receive a portion of the military pension, but the military spouse will have to mail the recipient monthly checks.  Experienced attorneys, like Stan Weller and Christopher B. Smith, may recommend an alternative, such as substituting a more straightforward asset in lieu of pension benefits.

• Survivor Benefit Plan (SBP): Unless the court order that divides the servicemember’s retirement pay includes SBP coverage for the civilian ex-spouse, the ex-spouse’s pension benefits will end upon the servicemember’s death. As a civilian spouse, it is critical to ensure a court order requires your spouse to list you as SPB beneficiary. A skilled lawyer can help you accomplish this.

These are just some of the factors that should be addressed by your family law attorney. Dividing retirement benefits properly is a critical step in the divorce process. As our client, we will work diligently to help ensure you understand your options to protect your long-term interests.