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Without question, any divorce which involves a spouse who served in the military will be more complicated than one which merely involves two civilians. A big reason as to why this is the case is due to the complexities associated with dividing military retirement pension benefits. The law on dividing military retirement pension benefits is highly complex; even a cursory examination of the history on this topic will put the truth to this statement.
At a certain point in the past, a spouse’s military retirement benefits were essentially “off limits”; this rule was part of federal law. Then, subsequent laws altered this state of affairs, and a spouse’s military retirement benefits were made eligible for division, subject to specific rules and limitations.
The case of Fulgium v. Fulgium (2019) is a relatively recent case in which the division – or, more precisely, the calculation – of military retirement benefits became a prominent issue. Let’s examine this case in a bit of detail so we can better understand this complex issue.
Facts of the Case
The parties in this case were married in 2005. The husband had been in the Marine Corps since 1999. The parties entered a partial settlement agreement in May of 2017; the trial on the dissolution occurred on the same day that the partial agreement was created. One of the key issues which wasn’t addressed by the partial settlement agreement was the division of the husband’s military retirement benefits.
Under the Uniformed Services Former Spouses’ Protection Act – or USFSPA – a spouse’s military retirement pension benefits may be divisible, but this law restricts the extent to which these benefits may be divided. For one, the marital share of the retirement benefits (i.e. the share which would be eligible for division) only includes the benefits which accrue to the date of the divorce, even if the former spouse continues accruing benefits after the divorce; furthermore, only “disposable” military retirement benefits pay may be eligible for division. This amount (“disposable pay”) is determined using specific rules on deductions, allowable expenses, and so forth.
At the trial court level, the court determined that the non-military spouse (the wife) should receive 15% of the husband’s disposable retirement pay. However, although this percentage was the cited amount, the court’s calculations yielded an annual amount which didn’t appear to make sense. The wife then appealed, as she and her counsel argued that the court incorrectly calculated the final award.
Ruling & Discussion
The appellate division gave a detailed discussion on the history of the division of military retirement benefits pay. The appellate division specifically referenced the National Defense Authorization Act for Fiscal Year 2017 (“NDAA17”), and how this act introduced an additional limitation on what benefits may be declared eligible for division. Since the laws which determine military retirement benefits divisibility are federal laws, these laws preempt whatever state laws may ordinarily apply.
The factual details of this case are exceedingly complicated, but the main point to take away is that the appellate division ended up finding that the trial court did err in calculating the amount due to the wife. After citing all the applicable laws, including the restrictions and limitations on eligible retirement pay, and the particular calculation methodologies involved, the appellate division found that the trial court had made mathematical mistakes in its calculation. Accordingly, the case was sent back for a second attempt to calculate the amount due to the wife correctly.
Contact the Murphy Law Firm for Additional Information
If readers want to learn more about division of military benefits in Maryland, property division in Maryland in general, or any other related matter, contact one of the family law attorneys at the Murphy Law Firm by calling 240-219-5243.
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