Dividing military pensions during a divorce in Hawaii involves specific rules and regulations that differ from civilian divorces. The Uniformed Services Former Spouses’ Protection Act plays a notable role in this process.
Under USFSPA, state courts can treat military retirement pay as marital property. This means that military pensions may be split between spouses during a divorce, but the process can be complex.
Understanding the 10/10 rule
One key factor in dividing a military pension is the 10/10 rule. This rule applies when a marriage lasts for at least ten years and the service member has completed at least ten years of military service during the marriage. When the 10/10 rule applies, the Defense Finance and Accounting Service can directly pay the former spouse their share of the military retirement pay. However, even if the 10/10 rule is not met, the court can still order the division of the pension, but the payments will not come directly from DFAS.
Equitable distribution of assets
Hawaii follows the principle of equitable distribution when dividing marital assets in a divorce. When dividing a military pension, the court considers the length of the marriage and each spouse’s contributions to the marriage. The court can either divide the pension as a percentage of the total retirement pay or assign a specific dollar amount to the former spouse.
Leveraging a present value method
In some cases, the court may use a present value method to divide the pension. This approach calculates the current value of the pension and awards other marital assets to the non-military spouse in exchange for their share of the pension. This method can simplify the division process, but it requires accurate valuation and careful consideration of both spouses’ financial needs.
Considering SBP coverage
Survivor Benefit Plan coverage is another important consideration. The SBP provides ongoing income to a former spouse if the service member passes away. A Hawaii court can order SBP coverage as part of the divorce settlement to protect the former spouse’s share of the pension.
Overall, dividing a pension in a military divorce requires careful attention to legal details. The process differs significantly depending on the length of the marriage. Understanding the meticulous rules at play can help ensure a fair outcome for both parties.