Our service members and their families give so much to their countries. On Veterans’ Day, we celebrated the sacrifices our veterans have made for our country. Sometimes, their sacrifice comes at the cost of their families. We explore here the impact of divorce on military benefits.
Once a service member exits active duty, they have different benefits and repercussions that need to be considered. The benefits depend on the stage of the divorce process the parties are in and what stage of retirement or exiting active duty (before, during, or after).
20/20/20 Year Rule
No benefits from the military can follow a former spouse unless the 20/20/20 rule applies. The 20/20/20 rule impacts the ability of a service member’s former spouse to keep military benefits following a divorce. The rule applies to families who were married for 20 years, the service member served for 20 years, and the marriage and military service overlapped by 20 years. If they were married for 20 years but only 19 of those years were active duty, this rule does not apply. The 20/20/20 rule also ends when the former spouse remarries.
20/20/15 Year Rule
If the parties do not meet the 20/20/20 rule, they may still get some relief through the 20/20/15 rule. This rule applies to parties who were married for 20 years, the service member served for 20 years, and the marriage and military service overlapped by 15 years. The former spouse can get health insurance coverage for one year from the date of divorce.
Military Divorce Health Benefits
TRICARE is the health insurance used for military families, including active duty, and veterans. If a civilian spouse or veteran has a civilian health benefit or insurance plan, TRICARE would be considered the secondary payer and would pay after the initial insurance carrier pays their portion of the bill. While TRICARE’s coverage and eligibility can change, the main dates of importance that can impact coverage under the 20/20/20 or 20/20/15 rules are:
- Servicemember Retirement date
- Divorce date
No divorce decree can force TRICARE to keep coverage of the former spouse, if that spouse does not qualify under 20/20/20 or 20/20/15.
ID Cards
The service member typically controls the enrollment of spouses and dependent children in DEERS (Defense Enrollment Eligibility Reporting System). They need to fill out the necessary DD forms (currently DD Form 1172). Depending on the age of the children and who is the custodial parent, the easiest process to update or issue an ID is for the service member or retiree to fill out the necessary forms and take the former spouse and/or children to the ID office.
However, there are remedies if the service member or veteran does not cooperate. If the former spouse has a copy of the final decree and qualifies under the 20/20/20 rule, they can go to the ID office without the service member or retiree’s cooperation. The former spouse will need a copy of the judgment, marriage certificate, and dependent children’s birth certificates. It also helps to have the service member’s discharge paperwork (DD-214) if available.
In addition, the courts cannot issue orders requiring the service member to continue to provide ID cards beyond the timing permitted by the Department of Defense. ID cards are what allow service members and their families access to many base facilities, including the gym, movies, and stores on bases.
Please note that under federal law, no one can make copies of Military ID cards except for some very limited exceptions.
Servicemembers’ Group Life Insurance (SGLI)
Servicemembers’ Group Life Insurance (SGLI) offers low-cost term coverage to eligible service members. This insurance applies when the member is active duty. When a service member retires, they can change the policy from SGLI to the Veterans Group Life Insurance (VGLI) within one year and 120 days from discharge for up to the amount of coverage they had through SGLI. Each plan manages its own policies regarding beneficiaries.
Some parties negotiate insurance policies to protect child or spousal support agreements in the event of one party passing away. Make sure to review current policies in place to see what can actually be done under the current policies.
VA Disability, Retirement Pay and Support
While each state may differ, in California, all income available to the party can be considered for support purposes. This means VA disability or pension payments can be calculated towards support. Depending on who the payee is, this can affect the tax consequences. The service member or retiree needs to speak with their accountant and/or tax attorney regarding the current rules for that tax year.
VA Disability, Retirement Pay and Property Division
As with support, the division of pensions and retirement varies state to state. California will consider pensions community assets even if the parties do not qualify for the 10-year rule. The 10-year rule is in place for the Defense Finance and Accounting Service (DFAS). It is to facilitate payment of retirement pension to the former spouse. The parties must be married for at least ten years of marriage coincident with ten years of military service. Anything less than ten years would leave the retired service member accountable for paying their former spouse directly.
Survivor Benefit Plan (SBP)
At the time of retirement, the service member must designate whether they are taking the Survivor Benefit Plan (SBP) and, if they do, how to set it up. The spouse is required to sign off on the form. Once the SBP is selected or not, it cannot be changed except for some very narrow exceptions. If selected prior to filing for divorce, it will be binding on that divorce process.
If you are a service member or veteran going through a divorce in California or Illinois, please contact us for a quick consultation.