Both military and non-military divorces divide assets. The types of properties that are included in the category of assets that we refer to as marital assets vary. Properties are divided using comparable calculations and techniques. People have homes, banks, 401(k)s, and pensions whether they are in the military or not.
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A military pension is available to active duty personnel. Does property partition apply to a military pension? Property division will apply to any military pension accrued during the marriage. Another question is whether it will be distributed equally. Fairness and equity are requirements for judges. Equitable does not always mean equal. There are factors to consider. If a military spouse becomes handicapped while the couple is married, the court’s perspective will change. The pension may be the only source of support for that spouse. The military has its own spousal support regulations. The equitable standards are taken into account by the court.
Military and non-military divorce. What do you need to understand about asset division in a divorce?
The military is a world of orders, structure, and protocols. It’s an orchestra of Sir Yes Sir. You are going to Afghanistan. Sir Yes Sir. Will you marry me? Sir Yes Sir. Are you divorcing me? Well, you can always scroll down quickly for our contact information below. There’s always someone who can answer you, Sir. But, before that, you need to understand a few things. There are similarities (or differences) between military and non-military divorce.
The similarities of military and non-military divorce in Michigan.
Military or non-military people do get married. Things don’t work out in marriage and people opt for divorce. The military service is a population with very high divorce rates. This is one population that says I’m under fire and actually meant it in a real sense. Real-time most of the time. The rest of the divorce will be much alike in the following sense:
Equitable distribution.
Both military and non-military divorce in Michigan follows the principle of equitable distribution. Family courts in Michigan follow the same principle in dividing marital assets. It is fair, equitable, and not necessarily equal. The court considers various factors. There’s the length of the marriage. Financial contributions. The court considers the needs of each spouse to determine a fair distribution of assets.
Marital vs. Separate Property.
Military or non-military you will have to classify your assets. Like everyone else, you have to sort out your marital and separate properties. Marital property refers to assets acquired during the course of the marriage. Separate property includes assets owned by each spouse before the marriage. These are usually things acquired through gifts or inheritances. The court often focuses on dividing marital property. Separate property is usually retained by the original owner.
Valuation of Assets.
Assets need to be properly evaluated. Their value will be determined with as much accuracy as possible. This is where you literally separate assets as separate and marital. The court will be focusing on dividing marital assets. Separate assets are usually retained by the original owner.
Consideration of Debt.
Like assets, debts are also divided. It is shared between spouses. Debts come in the form of mortgages, credit card debts, and loans. There are other financial obligations. Expect the court to look into the nature of your debts in much detail. They need as much detail to determine the most equitable way to divide them between spouses.
Length of the Marriage.
The length of your marriage plays a role in your asset division. It works in both military and non-military divorce. Longer marriages tend to lead to a more equitable division of assets. This is true in both military and non-military divorce. Whether military or non-military, the same factors apply to long-term marriages. Your financial contributions are considered. Future earning potential is a factor. The court factors in the needs of each spouse to ensure fair outcomes for both spouses.
Professional Assistance.
We are pretty sure as a military spouse you have navigated so many terrains. Divorce and property division are unlike any terrain. If you make a mistake in combat you can lose your life. You’ll lose some of your friends. Some weapons and tanks too. If you get into a divorce battle there’s a longer list of losing. Let’s start off with your spouse. Your child. Your home. Your friends too. A lot of assets can get “taken” in the process. The legal terrain needs a lawyer. Find one. Talk to one. There are professionals too for other things. They can also help you with handling the stress that goes with divorce.
The differences between military and non-military divorce.
Wardrobe definitely is different in the military. It’s not what we’re talking about here. It’s something more complex. You can worry about your wardrobe when you face the judge. Right now below are the things that make military and non-military divorce different:
Residency Requirements.
Both military and non-military divorces require residency. It’s a state requirement. Special considerations exist for the uniformed service stationed in Michigan. There’s a rule for members of the military who don’t meet the standard residency requirements. The Servicemembers Civil Relief Act or SCRA offers our service members protections. They are provided exemptions to accommodate their unique circumstance.
Treatment of Military Benefits.
This is where military and non-military divorces are different. The difference is in the military benefits. Military benefits cover retirement pay and health insurance. Service members get housing allowances. These are benefits considered marital property subject to division in a military divorce. Non-military divorces usually do not have these specific types of benefits.
Valuation of Military Retirement Benefits.
The valuation of military retirement benefits is complex. The length of the marriage is taken in the context of “creditable military service.” It is a way to determine the marital share of the retirement benefits. That is the only part of retirement subject to equitable distribution. There are special rules. A different calculation for dividing military retirement benefits. You need help from an attorney with experience in military divorce. One with expertise in the nuances of the SCRA.
Parental Deployment.
Military service is a revolving door of training, deployment, and relocations. To say it has an impact on child custody and support arrangements can be an understatement. Non-military divorce is the challenge of weekly parenting time. Juggling schedules. Military divorce is more like managing the absence of a parent. A military parent can be absent for months at a time. Such long absences affect child support calculations. There are what we call deployment expenses in a military marriage.
Child Support Considerations.
Child support calculations will be done in a different way. In a military divorce, there are such things as allowances and benefits on top of income to be considered. There are also deployment-related expenses. Changes in income driven by deployment also affect calculations of child support.
Military Service Impact.
The high mobility of a military spouse affects the life of the other spouse who is left behind. The spouse tagging along in every relocation. This affects the calculation of spousal support. The constant relocation affects the other spouse’s employment. It affects career opportunities. Courts factor these constant changes in the determination of spousal support.
Protection under the Servicemembers Civil Relief Act (SCRA).
The SCRA provides legal protections for service members on active duty. It safeguards against default judgments. It shields service members against stays of proceedings during their tour of duty. Such protection ensures service members are focused on their military duties. Providing protection without compromising their legal rights in divorce proceedings.
There are wide differences between military and non-military divorce. Jurisprudence is still founded on fairness and equity. It still revolves around protecting children. It is still based on the fair distribution of assets. The nuances of the law seem stringent. The court processes have a way of correcting itself. It needs a savvy lawyer to enjoy the corrective mechanism of the judicial process.
What assets in a military marriage are subject to property division in a divorce in Michigan?
Asset division in military and non-military divorce have similarities. Military and non-military divorce also have differences. Now you have a bit of awareness of asset division for military and non-military divorces. The next step is to know what will be subject to asset division in a military divorce. We have mentioned them in part here so let’s revisit these categories of assets.
Military Retirement Benefits.
The military retirement benefit is a significant asset in military divorce. Two things are considered in retirement benefits. The length of the marriage during military service. And, the duration of the creditable military service. The military benefit accrued during the marriage is the part considered marital property. It is subject to asset division. Michigan family courts apply specific formulas. They use a specific calculation to determine the equitable distribution of benefits.
Thrift Savings Plan (TSP).
The Thrift Savings Plan is a retirement savings plan provided to federal employees. That includes military service members. Your contributions to TSP during the marriage may be subject to asset division. It’s like other retirement accounts. The court still needs to determine what part will be allocated for distribution.
Housing Allowances.
An example of a housing allowance is the Basic Allowance for Housing or BAH. These allowances provide housing for service members and their dependents. The court determines the value of these allowances during the marriage. It is subject to division.
Survivor Benefit Plan (SBP).
The Survivor Benefit Plan provides a continued income to a surviving spouse. SBP is available to the spouse of a military retiree upon their death. The court can order the service member to elect SBP coverage for the former spouse as part of the division. The order ensures spouse continues to receive a part of the retirement benefits. This is in the event of the service member’s demise.
Health Insurance Benefits.
Health insurance benefits can be classified as marital property subject to division. This includes benefits from the TRICARE program. TRICARE is comprehensive medical coverage for eligible military service members. It is also available to service member families and certain retirees. The court will assess the value of this health insurance coverage. The court apportions it fairly between the spouses.
Other Financial Assets.
There are other financial assets considered for division in a military divorce. Military members like non-military people have bank accounts, investment accounts, and real estate. Military members buy vehicles too and intangible assets.
Not all assets in a military marriage can be apportioned in whole for property division. A certain degree of protection is afforded to service members. It is aimed at protecting their financial needs after their service. Military service members are people too. They own assets like any other human being. They have savings accounts. They can own a car and even a boat. It’s Michigan. What will you do in a state with thousands of lakes in retirement? There are special considerations when you discuss retirement benefits in a military divorce. The total value of retirement benefits is not automatically subject to division. Only a part of the total benefits.
How is property division determined in a military divorce?
Property division in a military divorce comes with considerations unique to the military. Regulations limit what part of the military benefits can be subject to division. The court still applies the principle of fair and equitable distribution. The court still considers the same factors in a non-military divorce in defining what is fair. Check out the key considerations for determining division in a military divorce.
Residency and Jurisdiction.
You need residency with a military divorce. You should be a resident of Michigan for at least 180 days. There are exceptions for military service members stationed in the state. These service members may not meet the residency requirement. The SCRA provides certain protections for these cases. There are rules for military members and their spouses. SCRA also covers jurisdictional issues.
Division of Military Retirement Benefits.
A thing about military divorce is the significant aspects of dividing retirement benefits. Michigan law considers military retirement benefits as marital assets subject to property division. The court accounts for the length of marriage during military service. It factors in with the duration of the creditable military service. The portion of the retirement benefits acquired during the marriage is subject to division.
Valuation of Assets.
The many assets recognized in military divorce need to be assessed. It has to be valued to determine its total worth for property division. These assets can be retirement accounts and savings accounts. Spouses may have acquired real properties, investments, and intangibles. You may need to hire professional appraisers. Get financial experts. Get an accurate assessment of the assets’ worth.
Military Benefits.
There are benefits in military service other than retirement benefits. There’s healthcare coverage. You have housing. We mentioned also SBP. They are all considered marital property subject to division in a military divorce.
Child Support and Spousal Support.
Last but not the least are child support and spousal support. These fall under a separate determination in a Michigan military divorce. The court assesses the financial needs of the children. The court also determines the needs of the spouse. The court sizes up the ability to pay to determine the appropriate amount of support.
You need an attorney with experience in military divorce. Special laws like SCRA can be a bit confusing to navigate. The unique treatment of marital assets in the military service needs an expert. Certain considerations in the determination of property division are unique to military divorce.
How is military pension handled in property division in a military divorce?
A military pension is a retirement benefit earned. It is earned by a service member during their time of military service. These pensions are part of the member’s financial security. It is available after the service member’s retirement from active duty. A military pension is subject to division. Here’s how Michigan family courts handle pensions in property division.
Marital Share Calculation.
We already mentioned this before. The length of the marriage during the service member’s creditable military service. The portion of the amount calculated is called the “marital share”. The term used is “overture fraction.” That represents the portion of the military pension earned. A service member serving in the military for 20 years is married for 10 years of those 20 years. The marital share would be 50%. That is 10 years of marriage divided by 20 years of military service.
Qualified Domestic Relations Order (QDRO).
You need a QDRO to divide a military pension. QDRO is a Qualified Domestic Relations Order. It is a document establishing the former spouse’s right to receive a portion of a service member’s pension benefits. QDRO defines the specific terms of the division. It defines the percentage to be awarded and the method of payment. It also includes other relevant details. Talk to your attorney to ensure the QDRO is properly drafted. You need to also ensure it is executed appropriately too.
Survivor Benefit Plan (SBP).
We mentioned SBP as part of marital property. SBP ensures continued income for the surviving spouse of a military retiree. It is provided in the event of the retiree’s demise. The court can order SBP coverage for the former spouse as part of the property division.
Calculation Methods.
Michigan family courts use many methods in calculating the division of military pension. The most common of them is the “Time Rule.” Courts have options to use other methods of calculation. There is the “Net Present Value.” The method determines the present value of the pension for division purposes.
You need to manage the distribution of a military pension. The alternative is not to have a decent pension during retirement. One must be aware of military regulations, federal law, and state-specific restrictions. Consultation with a knowledgeable attorney with experience in military divorce is imperative. You’ll need help arguing for a fair and just split. Protect your rights. Get help to comprehend the precise rules. You need good calculations in dividing a military pension. It’s the only way to ensure a fair share of the pension.
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