Beyond the 10/10 Rule: How Military Pensions, Disability, and SBP Really Get Divided in Divorce

Military divorce is not just “regular divorce with uniforms” - it sits at the intersection of federal statute, state family law, and a maze of acronyms like DFAS, USFSPA, SBP, and VA. Misunderstandings about the 10/10 rule alone can cause spouses to walk away from money they could have received or to negotiate based on false assumptions about eligibility for retirement pay. Add in the marital share formula, disability offsets, strict one‑year SBP deadlines, and jurisdiction rules that can quietly void a court’s authority, and the stakes become painfully clear for service members, former spouses, and the public administrators who support them. This article unpacks those moving parts in plain language so readers can spot the pitfalls before they sign a decree, advise constituents more effectively, and negotiate from a position of informed confidence rather than guesswork.

Understanding the 10/10 Rule and Its Limitations

A common point of confusion in military divorces is the so-called "10/10 rule." This rule refers to a provision under the Uniformed Services Former Spouses’ Protection Act (USFSPA), which allows the Defense Finance and Accounting Service (DFAS) to send retirement payments directly to a former spouse if the couple was married for at least 10 years, and the service member performed at least 10 years of creditable military service during the marriage. It is essential to note that this rule does not determine whether a former spouse is entitled to a portion of retirement pay - it only governs whether the payments can be made directly from DFAS rather than through the retiree¹.

The 10/10 rule often causes confusion because some mistakenly believe that failing to meet the 10/10 threshold means a spouse cannot receive any portion of military retirement. In fact, state courts can still award a share of military retirement to a former spouse regardless of the length of the marriage or service overlap. If the marriage does not meet the 10/10 requirement, the payments simply must be made by the retiree to the former spouse directly. This nuance is critical in divorce negotiations and should be clearly understood by legal counsel and the parties involved to ensure compliance with both federal law and state court orders².

Calculating the Marital Share of Military Retirement

Retirement pay division is typically calculated based on the "marital share" formula, which considers the portion of the service member's career that overlapped with the marriage. This is often expressed as a fraction: the number of months of marriage during creditable military service divided by the total number of months of creditable service. The resulting percentage is then applied to the member’s disposable retired pay to determine the former spouse’s share. Courts may award up to 50 percent of the disposable retired pay as marital property under the USFSPA³.

It is important to distinguish "disposable retired pay" from gross retired pay. Disposable retired pay excludes deductions such as VA disability offset, Survivor Benefit Plan (SBP) premiums, and certain court-ordered payments like child support. Since VA disability compensation can reduce the amount of retired pay subject to division, this may significantly impact what a former spouse ultimately receives. Practitioners should advise clients to examine how disability claims may affect retirement distribution and contemplate alternative arrangements if VA offsets are anticipated⁴.

Survivor Benefit Plan (SBP) Considerations

The Survivor Benefit Plan (SBP) offers ongoing income to a beneficiary after the service member’s death. For many former spouses, this is a critical element of financial stability post-divorce. A common mistake is assuming that an award of retired pay automatically includes SBP coverage. In reality, SBP