Divorce involves financial, legal, and family decisions that impact the whole family. For veterans and military families, however, another layer of federal law and military benefits can make the process more complicated.
A military divorce in Arizona may involve military retired pay, VA disability compensation, survivor benefits, health care considerations, and federal protections that do not typically arise in civilian divorce cases. Understanding how Arizona family law interacts with federal military law is essential before agreeing to divide assets or benefits.
With Veterans Day approaching, it is also an appropriate time to recognize the unique circumstances faced by those who have served in our armed forces. At McMurdie Law & Mediation, we help veterans and military families understand their rights and make informed decisions about their futures.
Is Military Retired Pay Divided in an Arizona Divorce?
Military retired pay can be one of the most significant assets in a military divorce.
Under the federal Uniformed Services Former Spouses’ Protection Act, commonly known as the USFSPA, state courts are permitted to treat qualifying military retired pay as “marital” or community property meaning both spouses have a claim on it. The law does not, however, automatically give a former spouse a percentage of a veteran’s retirement. The division must be addressed during the divorce process and reflected in an appropriate court order that considers all relevant law.
Arizona is a community property state. Generally, Arizona courts divide community and jointly held property equitably and assign each spouse their separate property.
Military retirement adds federal rules to that analysis, making it important to identify what portion of retired pay may be divided and how an order should be drafted.
Understanding the Military 10/10 Rule
One of the most common misconceptions surrounding military divorce concerns the 10/10 rule.
You may have heard that a spouse must have been married to a servicemember for at least 10 years to receive a portion of military retirement. That is not what the rule means.
The 10/10 rule concerns whether the Defense Finance and Accounting Service, or “DFAS” can make direct property-division payments to the former spouse. For that direct-payment mechanism, the marriage must have lasted at least 10 years, and that at least 10 years of marriage overlapped creditable military service.
Failing to satisfy the 10/10 rule does not automatically prevent an Arizona court from awarding a former spouse an interest in qualifying military retired pay. It affects how an award can be paid and enforced through DFAS.
That distinction can make a substantial difference when negotiating a divorce settlement.
What Happens to VA Disability Benefits in Divorce?
VA disability compensation is treated differently from divisible military retired pay.
Arizona law specifically provides that when dividing property, courts may not consider certain federal service-connected disability benefits, compensate a former spouse for a veteran’s waiver or reduction of military retired pay related to receiving those disability benefits, or award other property to the non-military spouse in order to make up for that reduction.
Federal law also excludes certain amounts waived to receive VA disability compensation from the definition of “disposable retired pay” available for division under the USFSPA.
The interaction between disability compensation and military retirement can become particularly complicated when a veteran receives both or elects benefits that affect retired pay. This is an area where assumptions can become expensive mistakes and it is best to research thoroughly available rights.
Remember to Update VA Dependent Information
VA Dependent benefits is another important VA issue veterans should not overlook after divorce.
Veterans with qualifying disability ratings may receive additional compensation based on having a dependent spouse. After a divorce, the former spouse generally no longer qualifies as a dependent for that additional payment. The VA advises veterans to report a divorce promptly so benefits can be adjusted and an overpayment debt does not accumulate.
Updating benefit information should therefore be part of your post-divorce checklist.
Active Duty Servicemembers Have Additional Protections
For veterans who are still serving, including qualifying Reserve and National Guard members, the Servicemembers Civil Relief Act may provide additional protections during divorce proceedings.
Among other protections, the SCRA addresses default judgments and can allow certain civil proceedings to be stayed when military duties materially affect a servicemember’s ability to participate.
These protections do not make a divorce disappear, but they can help ensure that military service does not unfairly prevent a servicemember from participating in the legal process.
Look at the Entire Financial Picture
Military divorce planning should extend beyond the question, “Who gets the pension?”
Depending on the circumstances, the financial picture may include:
- Military retired pay
- VA disability compensation
- Survivor Benefit Plan considerations
- Thrift Savings Plan accounts
- Health care and insurance benefits
- Real estate and other community property
- Spousal maintenance
- Child support and parenting responsibilities
Each benefit may be governed by different rules. Even military retired pay itself is subject to specific federal definitions and payment requirements.
Looking at these assets individually and as part of the overall financial settlement can help prevent unintended consequences that may have a negative impact on you.
Mediation Can Help Military Families Find Solutions
Not every military divorce needs to become a courtroom battle.
Mediation gives spouses an opportunity to discuss property division, parenting arrangements, support, and other concerns in a structured environment. For military families accustomed to deployments, relocations, unusual work schedules, and long-distance parenting, the flexibility of mediation can be particularly useful.
Some cases will still require litigation, especially when significant legal or financial disagreements cannot be resolved. McMurdie Law & Mediation brings more than 30 years of Arizona family law experience to both dispute resolution and litigation, helping clients choose an approach appropriate to their circumstances.
Protecting What You Have Earned and Planning What Comes Next
A military divorce in Arizona requires an understanding of both Arizona family law and the federal rules surrounding military and veterans’ benefits. Decisions about retirement, disability compensation, survivor benefits, and other assets can have consequences that continue long after the divorce decree is signed.
If you are a veteran, servicemember, or military spouse considering divorce, McMurdie Law & Mediation can help you understand the issues involved and plan your next steps.
Contact McMurdie Law & Mediation to schedule a consultation and discuss your military divorce with an experienced Arizona family law attorney.
As Veterans Day approaches, we also extend our sincere gratitude to the veterans and servicemembers who have served our country. Thank you for your service, sacrifice, and commitment.
Frequently Asked Questions About Military Divorce in Arizona
Does my former spouse automatically get half of my military retirement?
No. Federal law does not automatically give a former spouse half of a service member’s retired pay. The division of qualifying military retired pay is determined through the applicable state divorce proceeding, and the award must be included in the court order.
Does the 10/10 rule determine whether my spouse gets military retirement?
No. The 10/10 rule determines eligibility for DFAS to make direct payments of a retired-pay property award to a former spouse. It does not determine whether the former spouse can be awarded an interest in military retired pay.
Can my VA disability compensation be divided in an Arizona divorce?
Arizona law specifically protects qualifying federal service-connected disability benefits from being considered in the division of property and prohibits compensating a former spouse for a reduction in retired pay related to receiving those benefits.
Do I need to notify the VA after my divorce?
If your VA benefits include additional compensation for a dependent spouse, yes. The VA advises veterans to report divorce promptly. Continuing to receive additional benefits for a former spouse can result in an overpayment that must be repaid.