Military Divorce Finances in Spokane: What I Tell Every Fairchild Client

The divorce cases I handle from Fairchild Air Force Base are some of the most complex I see in Spokane. Not because the people are more complicated. Because the assets are.

Military retirement, the TSP, the SBP, TRICARE eligibility, VA disability. Every one of these has federal rules layered on top of Washington State community property law. And most of the time, neither spouse fully understands how any of it actually works.

Here’s what I walk through with every military client I work with right here in Spokane.

Military retirement pay is a marital asset in Washington State, subject to division as community property under the Uniformed Services Former Spouses’ Protection Act (USFSPA).

The key calculation is the “marital share.” Here’s the formula:

Months of active duty service during the marriage / Total months of active duty service at retirement

That fraction then gets applied to the military retirement pay.

So if a service member was on active duty for 240 months (20 years) at retirement, and 180 of those months overlapped with the marriage, the marital share is 75%. Washington’s community property law then treats half of that as belonging to each spouse. The former spouse would be entitled to 37.5% of the retired pay.

Simple in theory. In practice, the calculation runs through DFAS, and the court order language has to be precise or payments get misrouted.

The 10/10 rule: why it matters for enforcement

If your marriage lasted at least 10 years and overlapped with at least 10 years of active military service, DFAS will make direct payments to you as the former spouse. That’s the 10/10 rule.

Without it, the service member is personally responsible for sending your share to you each month. That can work fine. It can also create years of enforcement complications.

Most divorces I work with near Fairchild do meet the 10/10 threshold. But if you’re divorcing earlier in a service member’s career, it’s worth understanding what enforcement looks like if you don’t qualify.

The TSP: not a QDRO, an RBCO

The Thrift Savings Plan is the federal government’s version of a 401(k). It’s an investment account, not a pension, which means it’s a different asset with different rules.

You cannot divide a TSP with a QDRO. The TSP requires a Retirement Benefits Court Order, or RBCO. Same basic concept, different document, different submission process.

The RBCO has to be accepted by the TSP Service Office before the transfer happens. I’ve seen cases where the settlement specified a TSP division but the RBCO was drafted incorrectly, and the transfer never occurred. The court order said the right thing. The account didn’t move.

Make sure whoever is drafting the RBCO has done it before. It is not the same as a QDRO even though the outcome looks similar.

The SBP: the asset most people forget

The Survivor Benefit Plan is probably the most overlooked asset in a military divorce. And the most expensive omission when it gets missed.

Here’s what it is: when a retired service member dies, their retirement pay stops. The SBP is a form of insurance that pays a continuing annuity to a named beneficiary. The premium runs about 6.5% of the covered retirement amount, deducted from the retirement pay automatically.

If you’re receiving a portion of your former spouse’s military retirement, and they die without you named as an SBP beneficiary, you lose all of that income the day they pass.

This has to be addressed in the divorce decree. SBP coverage for a former spouse must be elected within one year of the divorce. If that window closes without action, the option disappears.

I’ve sat with clients who had a clean, well-drafted settlement, received retirement payments for years, and then found out the SBP was never set up correctly. The income stopped immediately upon the service member’s death. Nothing could be done about it at that point.

Name the SBP coverage in the decree. Don’t let it be an afterthought.

TRICARE: the 20/20/20 and 20/20/15 rules

Health insurance after a military divorce is its own calculation.

The 20/20/20 rule: If you were married for at least 20 years, your spouse served on active duty for at least 20 years, and those periods overlap by at least 20 years, you qualify for continued TRICARE coverage indefinitely. Same coverage as a military retiree’s spouse, same cost structure.

The 20/20/15 rule: If the overlap is at least 15 years but less than 20, you get one year of transitional TRICARE. After that, you’re on your own. In the Spokane area, a mid-tier individual plan runs roughly $550 to $750 a month. A family plan is $1,200 or more.

If you don’t qualify under either rule, TRICARE ends on the day the divorce is finalized. A gap in coverage can become a very expensive medical situation very fast. Factor the real cost of replacement coverage into the settlement before you sign.

VA disability pay: the exception that changes the math

Here’s a fact that surprises a lot of people: VA disability compensation cannot be divided as a marital asset. Federal law under USFSPA specifically excludes it from “disposable retired pay.”

This matters more than it sounds because disability pay can offset military retirement pay. A service member with a VA disability rating may have a portion of their retirement pay offset by tax-free disability compensation. That offset amount is not divisible.

If retirement pay is being reduced by disability offsets, the pool of divisible income gets smaller. The math on what you’re actually entitled to changes. This is worth running carefully before you agree to any settlement figure.

BAH, BAS, and income for support calculations

Basic Allowance for Housing (BAH) and Basic Allowance for Subsistence (BAS) are not taxable income to the service member, but Washington courts treat them as income for purposes of calculating child support and alimony.

For a service member stationed at Fairchild, BAH rates in the Spokane area for 2026 run from approximately $1,500 to $2,100 per month depending on pay grade and dependent status. That’s real money that factors into what support should look like on both sides.

If support is being calculated without including BAH and BAS in the income figure, the calculation is incomplete.

The frozen benefit rule (post-2017)

Before the National Defense Authorization Act of 2017, a former spouse’s share of military retirement would be calculated at the service member’s actual retirement pay, including any rank increases after the divorce. A service member who was O-4 at divorce but retired as O-7 would generate a much larger benefit for the former spouse.

The 2017 change froze the calculation. Now the former spouse’s share is based on the service member’s pay as of the date of divorce, with cost-of-living adjustments only. No benefit from future promotions.

This matters in settlements where the service member is mid-career and likely to advance in rank. The numbers at divorce day are the numbers. Plan accordingly.

What I actually look at

When a Fairchild family comes to me, I’m not running a basic asset spreadsheet. I’m looking at:

The military retirement marital share and the exact DFAS calculation
Whether the TSP division is structured correctly for an RBCO
Whether SBP coverage is addressed in the decree language, and at what coverage level
TRICARE eligibility and the real cost of replacement coverage if it doesn’t apply
VA disability pay offsets and their effect on divisible retirement income
BAH and BAS as income for support calculations
Whether a post-2017 frozen benefit analysis changes the retirement division numbers

Every one of these has a dollar value attached to it. Every one of them changes the overall picture.

If you’re going through a military divorce near Fairchild, or anywhere in the Spokane area, and you want to make sure you’re working from the right numbers, tell me about your situation. A conversation with me is a good place to start if you’re trying to get your bearings before settlement negotiations begin.

Military divorce is federal law overlaid on state law overlaid on your personal financial picture. That’s exactly the kind of complexity worth sitting down with someone about before you sign anything.

Frequently asked questions

Is military retirement pay divided in a divorce?

Yes. Under the Uniformed Services Former Spouses’ Protection Act (USFSPA), military retirement pay is divisible as a marital asset in most states, including Washington. The division is based on the marital share, which is typically calculated as the number of months of active service during the marriage divided by total months of service at retirement. Washington is a community property state, so the marital share formula matters significantly here.

What is the 10/10 rule in military divorce?

The 10/10 rule means that if the marriage lasted at least 10 years and the service member served at least 10 years of active duty during that marriage, DFAS will make direct payments to the former spouse. Without meeting the 10/10 threshold, the service member must voluntarily pay the former spouse their share, which creates enforcement complications.

Can I keep TRICARE after a military divorce?

It depends on the length of the marriage and overlap with military service. Under the 20/20/20 rule, if you were married for at least 20 years, your spouse served at least 20 years, and those periods overlapped by at least 20 years, you can keep TRICARE coverage indefinitely. Under the 20/20/15 rule (20 years married, 20 years service, 15 years overlap), you get one year of transitional TRICARE. After that, you need to find your own coverage.

Is VA disability pay divided in a military divorce?

No. Under federal law, VA disability compensation is specifically excluded from the definition of disposable retired pay under USFSPA. Courts cannot divide VA disability pay as a marital asset. However, because disability pay can offset the amount of retirement pay available for division, this affects how the settlement is structured overall.

What is the SBP and why does it matter in divorce?

SBP stands for Survivor Benefit Plan. It provides continuing income to a designated beneficiary after the retiree dies. In a divorce, if you’ve been receiving part of your former spouse’s retirement pay, SBP coverage ensures that income continues even after the service member passes. Without SBP coverage named in the divorce decree, you lose your share of retirement pay the moment they die. Coverage must be elected within one year of the divorce decree.

How is the TSP divided in a military divorce?

The Thrift Savings Plan is divided using a Retirement Benefits Court Order (RBCO), not a QDRO. The RBCO is specific to federal employee and military retirement accounts. It functions similarly to a QDRO in that it allows the transfer of a portion of the TSP to the former spouse without triggering immediate taxes or penalties. The RBCO must be drafted correctly and submitted to the TSP Service Office.

Military retirement: the marital share formula