This guide will walk you through the complexities of the Uniformed Services Former Spouses’ Protection Act (USFSPA) and how federal laws like the frozen benefit rule and disability waivers impact what you may be entitled to. And we’ll do it from a California perspective — more specifically, how this applies right here in Riverside County.

When you’re divorcing a service member or veteran, the division of military retirement benefits can feel like navigating a legal minefield. It’s more than the “10/10 rule.” It’s about understanding how military retirement gets divided, what portion is actually on the table, and why the timing of your divorce could drastically affect the outcome.

What You Are About to Read

• Understand what “disposable retired pay” really means and how it limits what can be divided
• Learn how the “frozen benefit rule” caps retirement division based on a specific date
• Discover how VA disability benefits affect your share of military retirement
• Clarify CRDP and CRSC — and why only one of them can be divided
• Unpack the Survivor Benefit Plan (SBP) and how to secure it post-divorce
• Avoid costly mistakes with timing, paperwork, and assumptions

What Is the USFSPA and Why It Matters

The Uniformed Services Former Spouses’ Protection Act (USFSPA) is the federal law that allows state courts to divide military retired pay in divorce. But it doesn’t grant an automatic right to a share of retirement. Instead, it sets boundaries:

• Disposable retired pay is the only portion courts can divide.
• Disability pay is excluded from this calculation.
• The former spouse’s share is affected by when the divorce is finalized.

In California, the division typically follows community property rules. But federal law overrides state law in key areas — especially when it comes to disability compensation and retirement timing.

What Counts as “Disposable Retired Pay”

Here’s where it gets technical — and critically important.

Disposable retired pay is not the full monthly retirement check. It’s the gross amount minus:

• VA disability waivers
• Court-martial fines
• Overpayment recoupments
• Survivor Benefit Plan premiums

This matters because only this reduced amount can be treated as marital property. That means if the service member receives VA disability compensation, the corresponding retirement amount is deducted before division — lowering your share.

Attorney Note: This distinction is often misunderstood during settlement talks. Ensure you’re working with a lawyer who knows how to read military pension statements and DFAS calculations.

The “Frozen Benefit Rule” Changed Everything

Before 2017, California courts could use the “time rule” formula — giving former spouses a larger share if the service member continued serving post-divorce.

That changed with the National Defense Authorization Act (NDAA) of 2017.

What’s the Rule?

If your divorce was finalized after December 23, 2016 and the service member was not yet retired, the division is calculated based on:

• Their rank and years of service at the time of divorce
• Not what they achieve later

This rule “freezes” the benefit. Future promotions or years served after the divorce don’t increase the former spouse’s share.

Why This Matters

Delaying the final divorce decree, even after reaching a settlement, can backfire.

Example: A Marine sergeant finalizes a settlement in May, then gets promoted in June. If the court doesn’t enter the judgment until July — post-promotion — DFAS may reject the order if it conflicts with the frozen rank.

Attorney Note: This is why precision in timing and paperwork is critical. We’ve seen settlements fall apart because the divorce decree lagged behind DFAS compliance.

VA Waivers and the Mansell Decision

The Mansell v. Mansell, 490 U.S. 581 (1989) decision makes it clear: courts cannot divide military retirement pay that’s waived in exchange for VA disability benefits.

This can be a rude awakening.

If your ex receives VA disability (common in military divorces), their retirement pay shrinks, and so does your portion. You can’t recover the difference — not even through spousal support indemnification, thanks to Howell v. Howell, 137 S. Ct. 1400 (2017).

How This Plays Out

Let’s say your divorce agreement granted you 50% of your spouse’s military retirement. Later, they waive $1,200/month for VA benefits. That’s $600 less for you — and courts can’t order repayment.

CRDP vs. CRSC: Know the Difference

You may hear two acronyms tossed around — CRDP and CRSC. These are Concurrent Receipt programs, but only one affects your divorce:

• CRDP (Concurrent Retirement and Disability Pay): Retirees with a disability rating of 50% or more may receive full retirement pay and disability pay without offset. Retirement pay remains divisible.
• CRSC (Combat-Related Special Compensation): A tax-free payment for combat-related injuries. It is not divisible.

If your spouse qualifies for CRSC only, you may receive nothing from retirement, even if you expected it.

Survivor Benefit Plan (SBP): Don’t Lose Out

The Survivor Benefit Plan (SBP) is the only way to continue receiving a portion of military retirement after the retiree’s death.

Key facts:

• Divorce terminates spouse SBP unless specific action is taken.
• You must be named as a former spouse beneficiary.
• A deemed election must be filed with DFAS within one year of divorce.

If you miss the window, you lose the benefit — even if it’s in your divorce order.

What You’ll Receive

SBP pays 55% of the elected base amount. Premiums are deducted from the retiree’s check.

Attorney Note: Always request a copy of the Retiree Account Statement (RAS) to confirm SBP election post-divorce. Don’t assume it was done.

Common Mistakes to Avoid When Dividing Military Retirement

1. Relying solely on the 10/10 rule. This only affects DFAS direct payment — not eligibility to receive a share.
2. Missing the SBP election deadline. No paperwork = no annuity.
3. Assuming you get a portion of VA disability. You don’t.
4. Using outdated formulas post-2016. The frozen benefit rule trumps state law.
5. Failing to confirm DFAS compliance. Orders must meet federal format standards.

People Also Ask

Can I get military retirement if I was married less than 10 years?
Yes — the 10-year rule affects direct payments from DFAS, not whether the court can award a share.

What happens to SBP if I remarry?
If you remarry before age 55, SBP payments usually stop. They may resume if that marriage ends.

Can a service member avoid paying by claiming disability?
Partially. Disability pay isn’t divisible — but it can reduce your retirement share.

Is CRDP better for the ex-spouse?
Yes. CRDP means retirement isn’t offset, so your share remains intact.

Can the court force SBP coverage?
Yes — and you should request it. But you must file the deemed election form yourself.

Final Thoughts: Why Legal Counsel Matters in Military Divorce

Dividing military retirement is not DIY territory. With VA waivers, DFAS compliance rules, SBP deadlines, and the frozen benefit rule, a single oversight can cost you thousands.

If you’re in Riverside County or anywhere in California, let our attorneys at Family Law Matters help you navigate this complex terrain. We understand the law — and how to apply it in a way that protects your future.

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