QDRO Corner: A Military Special Rule

The Military has a special rule which dictates when the Department of Finances and Account Service (“DFAS”) or any other pay center may make payments of disposable retired pay (the military pension) to a former spouse. This rule is generally known as the 10/10 rule. This rule states that the parties must have been married for at least ten years, overlapping with at least 10 years of the service member’s service – all in order for the former spouse to be eligible for payments of disposable retired pay as a division of property directly from DFAS.

It is very important to note here that whether a former spouse is entitled to a portion of disposable retired pay as a division of property is a matter of state law. If the parties have not been married for at least 10 years but the former spouse is to receive a portion of the disposable retired pay either by court order or agreement of the parties, then those payments will have to be made by the service member directly to the former spouse.