Written By: Dr. David Fernandez, PsyD., JD, AFC®  

As a family mediator and financial counselor, I often find myself working with military families who unfortunately choose to divorce. Some of my clients want to divorce as soon as possible, while others want to plan for a future date. More often, I will work with both spouses during a mediation to arrive at an agreed separation or dissolution agreement. Nevertheless, I find that the best plans and outcomes of post-divorce occur when both the military member and their spouse are knowledgeable about a few rules relating to benefits and continued healthcare coverage.  

Some General Rules to Know

The 10/10 Rule 

One of the first rules financial counselors and military spouses should know is the 10/10 rule. The 10/10 rule is perhaps one of the most misunderstood rules related to the divorce of a military spouse. Simply stated, this rule only deals with how a military spouse may receive a share of benefits after divorce. If the military couple has been married for at least 10 years, and the marriage included at least 10 years of military service, then the military spouse is entitled to receive a share of military pension directly from the Defense Finance and Accounting Service (DFAS). However, if the marriage lasted less than 10 years, or the marriage coincided with less than 10 years of military service, then the share of military pension must be paid directly from the former spouse. What is often misunderstood, is that a marriage of less than 10 years does not entitle a military spouse to any pension benefits. Many states include any pension earned by the service member during the marriage as a marital asset which should be distributed either equally or equitably, but there is no bright line rule on the amount or a minimum years of marriage before entitlement.  

The 20/20/20 Rule 

When a military service member has served at least 20 years, they were married for at least 20 years, and that marriage coincided with at least 20 years of military service, the non-serving spouse is entitled to protections under the Uniformed Services Former Spouse Protection Act (“USFSPS”). The USFSPA is a federal law that provides benefits to a former spouse of a service member that is unremarried. Under this law, the former spouse may receive continued medical under Tricare. Additionally, they may receive commissary, exchange, and even theater privileges under Morale Welfare and Recreation (MWR). Financial counselors should be aware of this law, because these benefits may help in establishing budgets or financial plans after divorce.  

The 20/20/15 Rule 

This rule applies to marriages lasting 20 years, where the service member had at least 20 years of service, but where the marriage only overlapped 15 years of service. The former spouse is entitled to 1 year of continued coverage under Tricare, but not any privileges under MWR.  

Helpful Financial Advice 

  • Health benefits.  

A former spouse will not automatically lose all their Tricare benefits upon divorce. As a military spouse, you can purchase up to 36 months of temporary health coverage through the Department of War Continued Health Care Benefits program; however, please note that a former spouse usually has 60 days to secure the continued coverage

 In some cases, spouses can negotiate that purchase to be included as part of their marital settlement agreement. Also, it is important to note, that biological and adopted children may continue receiving healthcare benefits through Tricare until they reach the age of 21 (or 23 if enrolled in college). Financial Counselors should become familiar with the following Tricare web pages which provide further information on the Continued Health Care Benefit Program, and the costs of such coverage:  

https://tricare.mil/Plans/SpecialPrograms/CHCBP.aspx?sc_database=web 

https://tricare.mil/Costs/AllCosts/CHCBP 

  • Financial support during divorce 

Stay at home spouses may be entitled to continued support from the service members. The military household is a unique phenomenon. While many couples enjoy mutual career development, because of deployments, overseas assignments, and child rearing responsibilities many times, it is difficult for the non-serving spouse to enjoy meaningful careers while their spouses serve. A pending divorce does not automatically mean that the service member spouse must abandon their current roles. Financial counselors should become familiar with each command’s expectation for temporary support during divorce proceedings. These policies may prevent situations where the service members withhold finances, access to bank accounts, or other monetary benefits which are necessary for the family.  

  • The total value of spousal support 

Along those same lines, a divorce for a military spouse does not necessarily result in loss of support after the divorce is final. Most states are not blind to the critical support that military spouses provide to the service members and the family. Accordingly, a military spouse is often entitled to show that their contribution has monetary value in determining alimony, spousal support, and distribution of marital assets. Financial counselors should become familiar with the service member’s leave and earning statements. This will help to identify the total monetary value of housing, subsidence, base pay, and special pay, which will all be necessary in determining the equitable support necessary after divorce. Many times, identifying these figures will help a military spouse better evaluate the level of monetary support they have become accustomed to, and the ability of the service member to provide such support after divorce.  

Planning for Success

An Accredited Financial Counselor® can help military spouses plan for life after divorce by helping clients establish a budget that accurately incorporates military benefits, access to pensions, and healthcare options.. Moreover, being knowledgeable about the above-mentioned rules and obligations adds to the toolkit of a financial counselor so they can help their client navigate a stressful and unfamiliar process. Ultimately, a lawyer should help a client achieve the legal documentation severing a marriage, but a financial counselor can assist the military family create separate household budgets, inform the family on accurate proposed spousal distributions, and identify levels of support necessary for the transition. When both parties are equipped with accurate information, they can better achieve a separation agreement that avoids unnecessary litigation, court costs, and future disputes.  

 

Dr. David Fernandez is an Accredited Financial Counselor®, AFCPE® Board Member, and Founder of VCR (Veteran Conflict Resolution) Mediation & Consulting, which gives clients the clarity, tools, and support they deserve when life gets complicated, without having to resort to litigation. Visit David’s FindAnAFC profile to view his services along with his LinkedIn profile. VCR Mediation & Consulting can be found on  Facebook, Instagram, and  YouTube.   

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