Dividing Military Retired Pay in a Nevada Divorce

The military divides only "disposable retired pay" - the member's gross retired pay minus certain deductions defined in 10 U.S.C. 1408(a)(4). A former spouse's award is stated against that disposable figure, as a percentage, a fixed monthly dollar amount, or (for a member not yet retired) a formula or hypothetical. A fixed-dollar award does not grow with cost-of-living increases, so that choice matters.

For DFAS to pay a former spouse directly, the marriage must overlap the member's creditable service by at least ten years each - the "10/10 rule" of 10 U.S.C. 1408(d)(2). If the 10/10 test is not met, the retired pay can still be divided; the member simply pays the former spouse directly instead of DFAS. Direct payments from DFAS are also capped: total payments to a former spouse generally cannot exceed 50% of disposable retired pay under 10 U.S.C. 1408(e)(1), and DFAS starts paying no later than 90 days after a complete application (DoD FMR Vol. 7B, ch. 29). FreeQDRO builds the jurisdiction findings, the 10/10 finding, the award, and the payment direction into one order, because DFAS requires every computation variable in a single document.

For divorces after December 23, 2016 involving a member who is not yet drawing retired pay, the 2017 National Defense Authorization Act changed how the marital share is fixed. Under 10 U.S.C. 1408(a)(4)(B), the division is based on the member's retired-pay base and years of creditable service as of the date of the decree - not their higher pay years later. This is the "frozen-benefit" rule.

That means the order must recite specific data DFAS demands - the member's High-3 retired-pay base and creditable service (or Reserve retirement points) as of the decree date. DFAS rejects orders for still-serving members that omit this recital. FreeQDRO's preparer prompts for those figures and places the mandatory NDAA-17 data section into active-duty and Reserve orders automatically.

The Thrift Savings Plan (TSP) is the military and federal 401(k)-style account, and it is not part of the pension. It is divided by a Retirement Benefits Court Order (RBCO), governed by 5 CFR part 1653, subpart A - a different document from the retired-pay order.

An RBCO must award either a stated percentage or a specific dollar amount as of a named valuation date; the TSP does not accept formula awards, cannot be told to use a particular fund, and pays no earnings between the valuation date and distribution unless the order expressly says so. FreeQDRO generates the RBCO from the TSP's official model language, with the earnings and outstanding-loan choices made explicitly rather than left to silence.

Dividing retired pay does not protect a former spouse if the member dies - payments stop at death unless there is Survivor Benefit Plan (SBP) coverage. Under 10 U.S.C. 1448(b)(3), a member may elect former-spouse SBP coverage, but the election must be made within one year of the decree.

If the member does not make the election, the former spouse can protect themselves with a "deemed election" under 10 U.S.C. 1450(f)(3) - by submitting DD Form 2656-10 with a copy of the order to the designated agent within one year of the order. Miss the window and the coverage can be lost for good. Because survivor coverage is too important to leave implicit, FreeQDRO makes it an express, on-the-record choice in every military order it drafts.