Las Vegas military families at Nellis Air Force Base and within the Las Vegas metropolitan area — active duty Air Force, Nevada Air National Guard, and Reserve component members — frequently encounter questions about whether military allowances count as income for child support and alimony purposes, and whether BAH (Basic Allowance for Housing) and other allowances paid during the marriage are community property subject to division in a Nevada divorce. The answers to these questions significantly affect the financial outcome of military divorce cases, and they differ from the treatment of allowances in civilian employment. Hauser Family Law represents both service members and military spouses in Las Vegas military divorce proceedings.
BAH as Income for Nevada Child Support and Alimony Calculations
Nevada child support under NRS 125B.080 is calculated based on each parent’s gross monthly income. Nevada courts — consistent with the majority of states — include military allowances (BAH, BAS, BAQ) in gross income for child support calculation purposes, even though these allowances are not subject to federal income tax. The rationale is that the allowances represent real economic value available to the service member for the support of their family — a service member receiving BAH is better positioned financially than one not receiving it, and the child support formula should reflect the service member’s actual economic resources. For alimony purposes under NRS 125.150, the court similarly considers all of the service member’s income and financial resources, including tax-free military allowances, in evaluating the ability to pay alimony and the appropriate amount. Military disability compensation under USFSPA (10 U.S.C. § 1408) is a more complex area: military retired pay that has been waived in exchange for VA disability compensation cannot be divided as marital property under Howell v. Howell, 581 U.S. 232 (2017) — the Supreme Court held that a state court cannot subsequently indemnify a divorced spouse for the reduction in their share of military retirement caused by the service member’s post-divorce VA disability waiver. This Howell limitation is critical for Nevada military divorce attorneys and their clients to understand when structuring military retirement division agreements.
Community Property Character of Military Allowances and Benefits
BAH and other allowances paid to a service member during the marriage represent economic value that was available to the marital community during the marriage. While the allowances themselves are consumed during the marriage (housing costs are paid, food costs are covered by BAS), the value they provided to the community is relevant to the overall equitable picture even if there is no separate BAH account to divide. Military retired pay accumulated during the marriage is divisible as community property under the Uniformed Services Former Spouses’ Protection Act (USFSPA, 10 U.S.C. § 1408). Nevada courts use the same time-rule formula applied to civilian pensions: the community property share of military retirement is calculated as the marital service period (years of creditable service during the marriage) divided by total years of service at retirement, times 50% of the disposable retired pay. Direct payment to the former spouse through the Defense Finance and Accounting Service (DFAS) is available when the service member has at least 10 years of creditable service overlapping 10 years of marriage (the 10/10 rule) — but Nevada courts can order division of military retirement even when the 10/10 rule is not met; the direct payment mechanism through DFAS simply isn’t available in that case, requiring the service member to make payments directly. Survivor Benefit Plan (SBP) coverage — which provides a continuing annuity to the former spouse if the service member dies before the former spouse — must be specifically addressed in the Nevada divorce decree to ensure the former spouse’s interest in military retirement is protected after the service member’s death. Hauser Family Law ensures that military retirement, SBP coverage, and all military benefits are correctly addressed in Las Vegas military divorce decrees and DFAS-compliant division orders.