How Can a Florida Divorce Affect Your Military Pension?
Many Port St. Lucie residents are current or retired members of a branch of the United States armed forces. These servicemembers are often entitled to receive deferred compensation during their retirement in the form of a military pension. Under both federal and Florida state law, these military pensions can be subject to equitable distribution if the service member divorces their spouse.
Immediate Offset vs. Deferred Distribution
Florida law divides any “marital property,” including military pensions, based on the equitable distribution rule. Basically, if the parties to the divorce cannot agree on the division of any marital property, a judge must make a fair division, which is not necessarily a 50/50 split. Rather, the court will examine several factors, such as the length of the marriage and the relative financial circumstances of each party.
In terms of dividing the marital portion of any military pension, a Florida court will typically use one of two methods depending on the case. The first method is known as immediate offset. This involves determining the present value of the pension, and then awarding the non-service member spouse a one-time payment representing their marital share of the military pension, either in cash or as an offset of the service member spouse’s overall share of the marital property.
For this method to be effective, however, the parties typically need to have substantial marital assets (to pay the offset) and expert testimony is usually required to conduct a proper valuation. The upside is that immediate offset resolves the division of the pension upfront as part of the final divorce judgment. On the other hand, it shifts certain financial risks to the service member, because if they take early retirement or end up forfeiting part of their pension, they are still out the money or property lost in the offset.
The second method for dividing a military pension is known as deferred distribution, Unlike an immediate offset, deferred distribution has the judge conduct a simple calculation that does not generally require expert testimony. Basically, the court determines how much the service member’s monthly pension benefit would be if they retired on the date of the final divorce hearing without taking early retirement. The court then multiplies this amount by a percentage representing the non-service member spouse’s share. This yields a fixed dollar amount that the non-service member spouse is entitled to receive each month after the other spouse retires.
Keep in mind, the non-service member spouse’s share of a military pension is generally based on the length of the marriage relative to the other spouse’s years of service. For example, if a husband was on active duty for 22 years but only married for the last 11, then the wife’s deferred distribution is based on 50 percent of the husband’s monthly pension benefit.
Contact a Port St. Lucie Equitable Distribution Attorney
Dividing pensions, military or civilian, can often present a number of complex factual and legal questions that need to be resolved before a divorce is finalized. Our Port St. Lucie division of assets lawyers can advise you of your rights in this area. Contact Baginski Brandt & Brandt today at 772-466-0707 to schedule a confidential consultation.
