How Are Military Retirement Benefits Addressed During Divorce?

 Posted on July 21, 2026 in Asset Division

When a member of the military or the spouse of a military member files for divorce, they face certain challenges and issues that other divorcing couples don’t have to deal with. For example, one major issue that divorcing military spouses must address is determining how military retirement benefits are distributed between spouses.

When someone joins the military, they receive many benefits, such as free or subsidized healthcare, access to military bases, and generous retirement benefits when his or her time in the service is done. Those benefits could become an asset during a divorce. At Elkouri Heath, PLC, our Novi, MI family law attorneys have over two decades of experience and work with military families going through divorce.

What Portion of Military Retirement Benefits Are Considered Marital Property in Michigan? 

Not all military retirement pay is automatically treated as marital property in a Michigan divorce. Generally, only the portion of disposable retired pay earned during the marriage counts as part of the marital estate. If a service member spent years in the military before getting married, that earlier portion of the retirement benefit is often considered separate property and may not be divided.

Calculating this share can get complicated, especially when a service member has a long career that includes time before and during the marriage. To determine what the civilian spouse gets, courts look at the servicemember’s rank and years of service at the time of divorce. The keyword here is "at the time of divorce." The courts will treat the civilian spouse’s benefits as though the servicemember had retired the day of the divorce, not accounting for future service.

What Is the Uniformed Services Former Spouses’ Protection Act?

According to the Uniformed Services Former Spouses’ Protection Act (USFSPA), a person is only eligible to receive payments directly from the Defense Finance and Accounting Service (DFAS) if they meet the requirements of the "10/10 rule." 

This rule states that spouses must have been married for at least 10 years, and the service member must have served 10 years during the marriage.

Can You Still Get Military Retirement Benefits in a Divorce Without Being Married for 10 Years?

A person still may be able to receive a portion of their spouse’s military retirement pay if it is included in the divorce agreement. In addition to setting the 10/10 rule, the USFSPA allows each state to apply its own rules and include military retirement benefits in the property division process (10 USC 1408).

In Michigan, courts distribute marital property in an equitable manner, meaning that it may not always be a 50/50 split. If someone is awarded a portion of their spouse’s military benefits in their divorce settlement, they may receive up to 50 percent of the total retirement award.

What Do Courts Consider When Dividing Military Retirement Benefits in 2026?

As mentioned before, Michigan judges try to divide property in a way that is fair based on the circumstances of the marriage. When it comes to military retirement benefits specifically, a court may consider several factors, such as:

• The length of the marriage
• The number of years the marriage overlapped with military service
• Each spouse's financial contributions during the marriage
• The age and health of each spouse
• Other assets or debts held by the couple
• Whether one spouse gave up career opportunities to support the other's military service

These factors help a judge decide what portion, if any, of the retirement benefits should go to the non-military spouse. No two cases are exactly alike, so outcomes vary widely.

Can a Prenup Exclude Military Retirement Benefits From Division?

For a prenuptial agreement to successfully exclude military retirement benefits, it usually needs to meet a few basic requirements. Both spouses must have entered the agreement voluntarily, without pressure or deception. Each spouse should have also had a fair chance to review the terms, ideally with the help of their own attorney.

Full financial disclosure is another key factor in a prenup’s legitimacy. If one spouse hid assets or gave false information about their finances before signing, a court may later decide the agreement is not enforceable. The terms of the agreement also need to be reasonably fair at the time it was signed. An agreement that leaves one spouse with almost nothing may face a tougher legal challenge later on.

If these standards are met, a Michigan court will often uphold the prenup and exclude the military retirement benefits from the marital estate, as the couple originally intended.

Do You Need a Special Court Order to Divide Military Retirement Benefits?

Dividing military retirement pay requires a specific type of court order, often called a Military Pension Division Order, or MPDO. State courts can divide military retirement benefits in a divorce, but some criteria must be met to make the decree enforceable. DFAS can reject improperly worded agreements, which is why it is critical to get it right the first time.

The divorce judgment must include specific language that meets federal requirements under the Uniformed Services Former Spouses' Protection Act. The MDPO tells the Defense Finance and Accounting Service how to divide the retired pay between the former spouses, including the percentage owed to each party and how payments should be issued.

Without a proper MDPO, a former spouse may have a legal right to a portion of the retirement benefits on paper, but no clear way to actually receive those payments. Working with an attorney who understands both Michigan divorce law and military retirement rules can help make sure this step is not overlooked.

Speak to an Oakland County, MI Family Law Attorney Today

When it comes to divorce, being in the military can complicate certain things. If you are divorcing a spouse who is in the military, or if you are in the military and are looking to get a divorce, you need help from a knowledgeable Novi, MI military divorce lawyer. At Elkouri Heath, PLC, we can help you with any issues you may be facing in your divorce. To schedule a free consultation, call our office today at 248-344-9700.