Military Divorce Financial Survival Guide –
“How Do I Avoid Financial Disaster in My Military Divorce?”
Divorce is tough enough without worrying about your finances taking a nosedive. As a service member, you have unique financial considerations – from your pension to housing allowances. Here’s your battle plan to emerge financially secure:
1. Understand Your Entire Financial Picture
List all assets/debts:
– TSP/retirement accounts
– Pensions (military + civilian)
– VA disability (if applicable)
– BAH/BAS entitlements
– Property (homes, vehicles, etc.)
2. Protect Your Pay & Allowances
– BAH: Will shift to single rate post-divorce (plan for this drop)
– Bonuses/Special Pay: Often included in support calculations
– Tax Implications: Alimony is no longer tax-deductible (post-2018 divorces)
3. The Pension Decision: Take the Buyout?
Many don’t realize:
You can negotiate a lump sum buyout instead of splitting your pension
This gives your ex other assets (house, savings) in exchange for keeping full pension rights
4. Update Your Beneficiaries (ASAP!)
– SBP: Must change within 1 year of divorce
– TSP/Life Insurance: Update forms immediately
– Will/Power of Attorney: Revise estate documents
5. Prepare for the Credit Hit
– Close joint accounts
– Remove authorized users
– Monitor your credit report
6. Child Support Realities
Remember:
– Includes BAH-Diff (if applicable)
– Based on total compensation (not just base pay)
– Continues until 18 (or 19 if still in HS)
7. Get Professional Help
A military divorce financial specialist can:
– Project long-term impacts
– Suggest tax-smart strategies
– Ensure no benefit is overlooked
Need a Financial Game Plan?
We work with financial experts to protect service members’ futures.
