If you are getting divorced and your spouse is a military member, their status can complicate the process of terminating your marriage. It is important to be aware of how military pensions are handled during a divorce to ensure your rights and future are protected. Contact a Bergen County property division lawyer for more information and representation during your divorce.
Are Military Pensions Considered Marital Property?
In general, yes, military pensions are considered marital property. In a marriage, the money that both spouses make is considered joint assets, regardless of who is technically being paid. Military servicemembers contribute monthly to their pension, meaning that they are using marital property (their income) to fund their retirement account. Therefore, both spouses have a claim on the money that comes out of the pension.
The USFSPA (Uniformed Services Former Spouses’ Protection Act) establishes this fact, making military retirement pay marital property during a divorce.
How Are Military Pensions Handled in an NJ Divorce?
Because military pensions are considered marital property, they are handled like any other joint asset in a divorce. During the divorce process, the court will consider a variety of factors when determining how assets should be divided between the couple, as they would with any other asset.
New Jersey courts can award nonmilitary spouses up to 50% of the military member’s pension. The actual number they decide on will vary depending on the following factors and more.
- How the rest of the asset and debt division went
- The income and earning capacity of each spouse
- The age and health of each spouse
- The length of the marriage
- Economic and noneconomic contributions made to the relationship
- The standard of living during the marriage
Courts will consider the above and more when deciding how a spouse’s military pension should be handled. Keep in mind, however, that regardless of when the divorce is finalized neither spouse can access the money until the servicemember retires.
How Much Will I Receive?
If your spouse is in the military, the court will determine the percentage of the pension that you are eligible for. However, it is important to note that you are only entitled to a percentage of the highest salary your spouse had during the course of your marriage.
If during the divorce you are awarded 50% of your spouse’s pension, when they retire the amount you are paid will be 50% of what the pension would have been based on your spouse’s salary at the time of your divorce. If after your divorce your spouse served for 10 more years and retires with a significantly higher salary than when they were married to you, you will not be eligible to receive 50% of the new, higher pension.
The details regarding how pensions are split in a divorce can be complicated, so reach out to a knowledgeable attorney at Feitlin, Youngman, Karas & Gerson, LLC today for more information.
