How Are Military Pensions Divided in a New Jersey Divorce?

Dividing assets during a divorce can feel overwhelming, especially when one of those assets is a military pension. These benefits are often significant, long-term, and governed by a mix of federal and state law. If you or your spouse served in the military, it is important to understand how these pensions are treated in a divorce so you can make informed decisions about your future. Read on and reach out to the divorce lawyers in Sussex County here at Gruber, Colabella, Thompson, Hiben & Montella to learn more. Here are some of the questions you may have:

Is a Military Pension Considered Marital Property in New Jersey?

In many cases, yes, but the answer depends on when the pension was earned. New Jersey follows the principle of equitable distribution, meaning marital property is divided fairly, though not always equally. A military pension is generally considered marital property to the extent it was earned during the marriage. Some of the most important points to understand are as follows:

• Only the portion of the pension earned during the marriage is subject to division
• Benefits accrued before the marriage are typically considered separate property
• Courts look at the length of the marriage in relation to the length of military service
• The value of the pension may need to be calculated by a financial expert

How Does Federal Law Impact the Division of Military Pensions?

Military pensions are not governed solely by state divorce laws, which can come as a surprise. The federal law known as the Uniformed Services Former Spouses’ Protection Act allows state courts, including those in New Jersey, to treat military retirement pay as divisible property. However, there are important limitations and procedures to be aware of:

• The law permits, but does not require, division of military retirement pay
• Direct payment from the military is only available if the marriage lasted at least 10 years, overlapping with military service
• Payments are made through the Defense Finance and Accounting Service if eligibility requirements are met
• Disability pay is generally not divisible as marital property

What Factors Do New Jersey Courts Consider When Dividing a Military Pension?

Every divorce is unique, and courts in New Jersey consider a wide range of factors when determining what is fair. While the marital portion of the pension is subject to division, the exact percentage awarded to each spouse can vary. Some of the most common considerations are as follows:

• The length of the marriage
• Each spouse’s financial circumstances and earning capacity
• Contributions made by each spouse, including non-financial support
• The age and health of both parties
• The overall division of other marital assets

In some cases, spouses negotiate a settlement that offsets the pension with other assets, such as the marital home or investment accounts. In others, the pension is divided directly, with payments made over time.

Military pensions can represent one of the most valuable assets in a divorce, yet they are also among the most complicated to divide. Our firm has extensive experience representing individuals from all walks of life, and we stand ready to put that experience to work for you. Contact us today so we can discuss your case.