Special Requirements for Orders Dividing Military Retired Pay

Military service members (and uniformed members of other agencies) can receive

retired pay from the military if they satisfy the minimum service requirements. Orders

dividing military retired pay can vary greatly in the amount of information needed within

the order based on the service member’s status with the military (i.e.: retired and

receiving retired pay, retired but not yet receiving pay, still in service, etc.).

In general, the distinction for what information is needed is based on whether the

service member is or is not already receiving retired pay when the divorce becomes

final. If the service member is not yet receiving retired pay when the divorce becomes

final, then the Order will need to include the member’s high-3 at the time of the divorce,

and the member’s years of creditable service at the time of the divorce, or, in the case

of a reservist, the member’s creditable reserve points at the time of divorce. The

member’s high-3 is the average of the member’s highest consecutive 36 months of pay.

If the service member is already receiving retired pay, then this additional information is

not needed.

The appropriate military pay center will use this information to determine whether the

amount awarded to the former spouse is an allowable amount. In cases where the

award is a percentage or formula, the military will use the information to determine the

amount the former spouse will be paid.

Obtaining this information requires cooperation from the service member to provide

such information. As is the case in many divorces, the former spouse may want

documentation of such information since it will have an impact on the amount the former

spouse receives. The information will not be provided by the military, so it is imperative

that the service member cooperate. As with many people who own the retirement

interest being divided, service members may be reluctant to provide the information

about their service; however, without this information the order will not be accepted by

the military.

Since the divorce may not be entered until months after a separation and settlement

agreement is reached, the parties may want to agree on these figures in their

agreement, rather than leaving it as an open issue to resolve once the divorce is final. In

addition to preparing the Retirement Order, we can help draft the language in a

settlement agreement regarding this asset to ensure that all elements are covered.