State courts can order a former spouse to receive a portion of your military retirement, and the Defense Finance and Accounting Service will not send more than half of your disposable retired pay directly to that spouse.
the legal basis: USFSPA
The Uniformed Services Former Spouses’ Protection Act (USFSPA) was passed in 1982 after the Supreme Court ruled that federal law protected military pensions from state division. The act removes that protection and authorises state family courts to treat retired pay like any other marital asset.
how much can be taken?
DFAS enforces a ceiling: no more than 50 % of the retiree’s disposable retired pay may be paid directly to a former spouse as a property‑division award. If the court also orders child support or alimony, the total garnishment can rise to about 65 %.
The percentage awarded is not set by federal law. It is decided by the applicable state’s family‑law rules—equitable‑distribution states weigh factors such as marriage length and contributions, while community‑property states often split assets 50/50.
the 10/10 rule and payment methods
The “10/10 rule” does not determine eligibility. It only governs how the payment is made. If the marriage overlapped with at least ten years of creditable service, DFAS will send the ex‑spouse a direct monthly payment. If the overlap is less than ten years, the court can still award a share, but the retiree must pay that amount out of pocket.
what is disposable retired pay?
Courts divide only the disposable portion of retired pay. That is the gross amount minus certain deductions, such as:
- overpayments owed to the government,
- forfeitures resulting from court‑martial convictions,
- any VA disability compensation the retiree elects to receive in lieu of retired pay.
common calculation method
Most states use the “coverture fraction” (or time‑rule) to isolate the portion of the pension earned during the marriage:
Marital share = months of service during the marriage ÷ total months of creditable service at retirement
The court then applies the state‑determined percentage—often 50 %, to that fraction. For example, a 24‑year career with 12 years of marriage yields a ½ coverture fraction; if the state orders a 50 % split, the ex‑spouse receives 25 % of the total retired pay.
what to do if you’re facing a division
Consult a military‑family‑law attorney early. They can help you:
- Identify the correct valuation method for your branch and rank.
- Negotiate a settlement that may include a lump‑sum payment instead of ongoing garnishment.
- Consider electing VA disability compensation, which can lower the disposable retired pay subject to division.
Understanding the interplay of federal statutes, DFAS caps, and state law can prevent surprise and protect your financial future.