Is a DFAS Account a Pension? How Military Retirement Is Divided in Divorce in Columbus, Ohio

If you are navigating a divorce in Columbus and one spouse has served in the military, you may have encountered the term “DFAS account.” The short answer is yes—what is commonly referred to as a DFAS account typically pertains to a military pension. However, dividing this asset during a divorce—particularly in Franklin County or the surrounding Central Ohio courts—is not as straightforward as splitting a 401(k). Federal regulations overlay Ohio law, and if the division is not executed correctly, you risk losing a substantial portion of your entitlements.

Understanding the DFAS Account

DFAS, or the Defense Finance and Accounting Service, is the agency responsible for disbursing military retirement benefits. When individuals mention a “DFAS account,” they are generally referring to:

• Military retired pay (a pension)

• Occasionally, Survivor Benefit Plan (SBP) rights

  
  

It is essential to note that this differs from a Thrift Savings Plan (TSP), which functions similarly to a 401(k) and is divided through a separate process.

Is Military Retirement Considered Marital Property in Columbus, Ohio?

Yes, military retirement is classified as marital property, but only the portion accrued during the marriage. Ohio courts, including those in Franklin County Domestic Relations Court, treat military retirement akin to a pension and typically apply a coverture formula:

• Years of service during marriage ÷ Total years of service = Marital portion

  
  

This marital portion is then divided, often equally, depending on the specifics of the case.

Example Calculation

• Total years of service: 20 years

• Years served during the marriage: 10 years

• Marital portion: 50%

• Ex-spouse’s share: 50% of that = 25% of the total pension

  
  

Clarifying the 10/10 Rule

The “10/10 rule” is a common point of confusion. Here is what it actually entails:

• If the couple was married for at least 10 years, overlapping with 10 years of military service, DFAS can pay the ex-spouse directly.

• If the marriage does not meet this criterion, the service member is responsible for making payments to the ex-spouse directly.

  
  

Important Note: This rule does not determine whether the pension can be divided; it solely affects the method of payment.

The Necessity of a Special Order (Not a QDRO)

Military pensions cannot be divided using a Qualified Domestic Relations Order (QDRO). Instead, the divorce decree must contain DFAS-compliant language, often referred to as a Military Pension Division Order. If the language is incorrect—even slightly—DFAS will reject it. This oversight is one of the most frequent and costly mistakes encountered in these cases.

Addressing the Survivor Benefit Plan (SBP)

This aspect often complicates many divorce proceedings. The Survivor Benefit Plan (SBP):

• Provides payments to the former spouse if the service member passes away.

• Must be explicitly awarded in the divorce decree.

  
  

If the SBP is not addressed, payments typically cease upon the service member's death, potentially eliminating what was intended to be a long-term asset.

Considerations Regarding VA Disability

Another significant concern involves VA disability benefits:

• VA disability benefits are not divisible in divorce.

• If the service member later opts for disability pay, it may reduce the retirement pay.

  
  

Consequently, the ex-spouse's share could diminish after the divorce. In cases within the Columbus area, we frequently manage this issue through:

• Indemnification language

• Structuring spousal support to mitigate the risk

  
  

How Courts in Columbus Generally Approach Military Retirement Division

In most divorce cases in Franklin County, military retirement is typically handled as follows:

• Employ a coverture formula (not a flat dollar amount).

• Divide only the marital portion.

• Include DFAS-compliant language.

• Address the following:

- Direct payment eligibility (10/10 rule).

- Survivor Benefit Plan (SBP).

- Disability offsets.

Conclusion

In summary, a “DFAS account” refers to a military pension. It is divisible in an Ohio divorce, but it necessitates precise drafting and planning. If the division is executed improperly, you may:

• Lose direct payment rights.

• Lose survivor benefits.

• Receive less than you are entitled to over time.

  
  

Consult a Columbus Divorce Lawyer with Expertise in Military Pensions

The division of military retirement is an area where minor drafting errors can lead to significant long-term repercussions. If you are facing a divorce in Columbus, and military retirement is a factor, it is crucial to ensure that the process is handled correctly from the outset.

For more information on legal representation, please visit Hoffman Law.