Nevada divorce involving a spouse in the military — or a veteran receiving disability compensation — presents a distinct legal framework that overlaps federal law, Nevada community property law, and the unique structure of military benefits. Understanding how military retirement, VA disability, survivor benefit elections, and healthcare interact with Nevada divorce is essential for both military spouses and the civilians who divorce them.
Military Retirement Pay Division
The Uniformed Services Former Spouses’ Protection Act (USFSPA) at 10 U.S.C. § 1408 authorizes state courts to treat military retired pay as community property subject to division in divorce. Nevada courts apply the time-rule: the community fraction equals the months of creditable military service during the marriage divided by total months of creditable service at retirement. The Defense Finance and Accounting Service (DFAS) will pay the former spouse’s share directly if the marriage lasted 10 years overlapping with 10 years of military service — the 10/10 rule. Below 10/10, the divorce decree still awards the former spouse a share, but collection must go through the military member who is required to transmit the payment. A Survivor Benefit Plan (SBP) election must be made at retirement and cannot be changed without the consent of the beneficiary — the divorce decree should address SBP coverage to ensure the former spouse can remain as beneficiary.
VA Disability and the Howell Decision
VA disability compensation under 38 U.S.C. § 5301 is fully protected from division in divorce — courts cannot award a former spouse a share of VA disability benefits. The Supreme Court’s decision in Howell v. Howell, 581 U.S. 232 (2017), extended this protection to situations where a veteran waives retirement pay to receive tax-free VA disability compensation — a common financial strategy. State courts cannot order the veteran to indemnify the former spouse for the reduction in retired pay caused by the disability waiver. TRICARE health coverage for former military spouses requires a 20/20/20 marriage — 20 years of marriage overlapping with 20 years of service, with the servicemember having 20 years of creditable service — to continue after divorce. The interplay between retirement pay, disability waiver, and court-ordered former spouse shares requires careful planning in the divorce decree.
Contact Hauser Family Law
Hauser Family Law advises military families and veterans on divorce involving military retirement, VA disability, and survivor benefits. Contact us for a consultation.