Transcript Former Spouse Benefits from the Military

Military Benefits Other Than Retirement &
Miscellaneous Practice Issues
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Background and Practice Profile
Support to Dependents
Former Spouse Benefits from the Military
You can’t practice military
dissolution without knowing…
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How to read the LES
How to get your Income Deduction Orders
into effect
Military compensation – what is counted
and how it is taxed
Temporary relief without a court order
Insurance & Privileges -- who can keep
them after dissolution
Key Components of a Leave and
Earnings Statement (LES)
(see handout for a sample LES)
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Entitlements: lists each type of pay and the
amounts
Deductions: taxes, SGLI (life insurance), midmonth pay
Allotments: discretionary deductions including
dental insurance, non-IDO support, IRA and
investment contributions, or any contribution
going to an account other than the primary
account
Key Components of LES (Cont.)
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Grade: the member’s rank
Yrs Svc: pay is based on rank + years in
service, so you need to know both
BAQ Type & VHA Zip: identifies type of
housing allowance the member receives
and the area for which he receives it
Thrift Savings Plan: Military investment
plan, should be divided as an asset
How to get an IDO into effect
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Income Deduction Orders for child support and alimony both go
through the Defense Finance and Accounting Service (DFAS)
Mail a certified copy with a cover letter containing the member’s
name and social security number to:
Defense Finance and Accounting Service
Cleveland DFAS-DGG/CL
PO Box 998002
Cleveland Ohio 44199-8002
Or, you can fax the IDO with a cover sheet indicating the
member’s name and social security number to: (216) 522-6960
It is always a good idea to call and follow up: 1-888-332-7411
http://www.dod.mil/dfas/militarypay/garnishment/
childsupportandalimony.html
Support to Dependents
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Military Pay
Types of pay included for support
purposes & how it is taxed
Service Regulations – support to
dependents without a court order
Military Pay: Types and Rationale
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Base Pay: uniform in each branch of service
Basic Allowance for Sustenance (BAS): allowance for food, officers
receive $192.74 and enlisted members receive $279.88 regardless
of branch or rank
Basic Allowance for Housing (BAH): based on rank, location and
dependents
Cost of Living Adjustment (COLA): Paid to members who (1) serve
in an area where the cost of living exceeds the national average by
8% or (2) live overseas. The amount varies by location and it is
intended to offset the increased expenses the member will incur.
Incentive Pay: paid to certain occupation groups or to people with
skills sought by the military. Examples include aviation pay, sea
pay, medical, dental, foreign language, etc.
Which types of pay are included?
Fla. Stats. 61.08(2) and 61.30(2)
Fla. Stat. 61.08(2): In determining a proper award of
alimony or maintenance, the court shall consider all
relevant economic factors, including but not limited
to:
(a) The standard of living established during the
marriage.
(b) The duration of the marriage.
(c) The age and the physical and emotional condition of
each party.
(d) The financial resources of each party, the nonmarital
and the marital assets and liabilities distributed to
each.
(e) When applicable, the time necessary for either party
to acquire sufficient education or training to enable
such party to find appropriate employment.
(f) The contribution of each party to the marriage,
including, but not limited to, services rendered in
homemaking, child care, education, and career
building of the other party.
(g) All sources of income available to either party.
Fla. Stat. 61.30(2): Income shall be determined on a
monthly basis for the obligor and for the obligee as
follows: (a) Gross income shall include, but is not
limited to, the following items:
1. Salary or wages.
2. Bonuses, commissions, allowances, overtime, tips,
and other similar payments.
3. Business income
4. Disability benefits
5. All workers' compensation benefits and settlements.
6. Unemployment compensation.
7. Pension, retirement, or annuity payments.
8. Social security benefits.
9. Spousal support
10. Interest and dividends.
11. Rental income
12. Income from royalties, trusts, or estates.
13. Reimbursed expenses or in kind payments to the
extent that they reduce living expenses.
14. Gains derived from dealings in property, unless the
gain is nonrecurring.
Is it income? Is it taxed?
Type of Pay
Income?
Taxed?
Base Pay
YES
YES
BAS
YES
YES
BAH
YES
NO
Incentive Pay
YES
YES
COLA
NO
YES
Service Regulations: Support to
Dependents Without a Court Order
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Each branch has their own regulations that dictate what
type of support the member must provide
Army and Marine regulations criminalize the failure to
pay support at a level generally equivalent to a
member's authorized BAH. All other services have
established "guidelines" for use by the commander
where there is no court order or support agreement to
enforce these regulations, contact the member’s
superior officer
Navy and Marine Corps -- 32 CFR 733
Army – 32 CFR 584
Air Force – 32 CFR 818.12
Former Spouse Benefits
From the Military
Overview
 10 U.S.C. Secs. 1062 and 1072
 Classifications
 Benefits
 Practice Pointers
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Health Insurance and Benefits – are they
available after dissolution and who gets them?
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Governed by 10 U.S.C. §§ 1062 and 1072
Provides benefits to former spouses in some (not all!)
situations
The member spouse must have completed 20 years of
creditable service in order for a former spouse to receive
any benefits
The parties must have been married for 20 years and
the member must have served 20 years in order to
trigger long-term benefits
10 USC 1062
The Secretary of Defense shall prescribe such
regulations as may be necessary to provide that
an un-remarried former spouse described
in subparagraph (F)(i) of section 1072(2) of this
title is entitled to commissary and exchange
privileges to the same extent and on the same
basis as the surviving spouse of a retired
member of the uniformed services.
10 USC 1072(2)(F)-(G)
(2) The term ''dependent'', with respect to a member or former member of a uniformed
service, means:
(F)
the unremarried former spouse of a member or former member who (i) on the
date of the final decree of divorce, dissolution, or annulment, had been married to
the member or former member for a period of at least 20 years during which period
the member or former member performed at least 20 years of service which is
creditable in determining that member's or former member's eligibility for retired or
retainer pay, or equivalent pay, and (ii) does not have medical coverage under an
employer-sponsored health plan;
(G) a person who (i) is the unremarried former spouse of a member or former
member who performed at least 20 years of service which is creditable in
determining the member or former member's eligibility for retired or retainer pay, or
equivalent pay, and on the date of the final decree of divorce, dissolution, or
annulment before April 1, 1985, had been married to the member or former member
for a period of at least 20 years, at least 15 of which, but less than 20 of which, were
during the period the member or former member performed service creditable in
determining the member or former member's eligibility for retired or retainer pay,
and (ii) does not have medical coverage under an employer-sponsored health plan;
Classifications of Spouses
Based on three components:
(1) Years in service
(2) Years of marriage
(3) Years that marriage overlaps creditable service
Example: 20/20/20
20 years of service
20 years of marriage
20 years of overlap
20/20/20 Spouse Benefits
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Commissary – tax free and lower cost groceries
Base Exchange – tax free and lower cost, like
Target or WalMart
Health Care – through TriCare, very low
deductibles for visits and prescriptions
Dental Care
Benefit Table
20/20/20
Commissary
Base Exchange
Terminate upon
remarriage, but may be
reinstated when
subsequent marriage ends
Medical/Dental until covered by
employer-sponsored health plan or
remarriage, but can be reinstated
when employment or subsequent
marriage ends
20/20/15
None
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Married less than 20
years or member
has less than 20
years of service
None
DOD Continued Health Care Benefit
Program – premium based, 36
months, terminates on remarriage
One (1) year of medical coverage
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After 1 yr, eligible for DODnegotiated conversion policy
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Terminates upon remarriage or
enrollment in employer-sponsored
health insurance plan (but may be
reinstated w/in the initial 1 year
period)
Practice Pointers
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Benefits are a statutory right
Government official has no right to expand privileges – if
the time requirements are not met, no benefits are
granted
The military member has no discretion to grant or deny,
expand or reduce, the benefits – not a point for
negotiation
Privileges are granted whether or not they are
specifically mentioned in the MSA or final judgment,
however, a recitation of the dates of marriage and
service will help facilitate the application process
Practice Pointers (Continued)
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The member’s cooperation is not required for the former
spouse to receive benefits
Carefully advise non-member clients about the effect of
remarriage on medical, commissary and base exchange
benefits
If the parties are close to meeting a higher level of
benefits, consider delaying the final judgment since the
years of marriage is counted from wedding date until
dissolution date
Practice Pointers (Continued)
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Value the medical benefits and include it in the alimony
package
Consider supplemental insurance if your client does not
live near a military medical facility or provider
Calculate years very carefully for National Guard and
reserve members – not every year is a “creditable” year
Summary and Questions
Donald P. DeCort, Esquire
(813) 254-0156
[email protected]