Military and Federal Pensions in a Kentucky Divorce: USFSPA, the 10/10 Rule and Survivor Benefits

By the FigureMyTax Editorial Team · How we calculate

Kentucky divides military retirement earned during the marriage as marital property, within its symmetry rule for retirement benefits. Federal law caps all court-ordered payments at 50 percent of disposable retired pay.

Is military retirement divided in a Kentucky divorce?

Yes, as marital property to the extent acquired during the marriage, within the symmetry rule that treats retirement benefits of both spouses alike (KRS 403.190(4)). Federal law lets a court treat disposable retired pay as property of the member alone or of the member and spouse under the law of the court’s jurisdiction, but only if the court has jurisdiction over the member through residence other than because of military assignment, domicile or consent (10 U.S.C. 1408(c)).

What is the 50% federal limit in Kentucky?

The total amount of disposable retired pay payable under all court orders may not exceed 50 percent of the disposable retired pay (10 U.S.C. 1408(e)(1)). Kentucky sets no percentage of its own, so the federal limit is the ceiling that applies; the Kentucky pension division calculator shows the share against it.

What is the 10/10 rule in Kentucky?

Direct payment from the military to a former spouse is not available, to the extent the order treats retired pay as property, unless the spouses were married 10 years or more during which the member performed at least 10 years of service creditable for retired pay (1408(d)(2)). The rule limits payments made by the military under section 1408; it does not by itself say a court cannot divide the pay, so an order should say how a spouse who misses the test will be paid. The calculator checks your overlap months.

How does a military order get paid in Kentucky?

After effective service on the Secretary concerned of a court order that specifically provides for payment of a share of disposable retired pay to a spouse or former spouse, the Secretary makes payments, subject to the section’s limits (1408(d)(1)). A general property award is not enough; the order must specify the amount or fraction.

Do military residents qualify to file in Kentucky?

Yes. A party stationed in Kentucky while a member of the armed services, with that presence maintained for 180 days next preceding the filing, meets the residence rule (KRS 403.140(1)(a)).

What about federal civilian pensions in Kentucky?

Federal law provides that payments under the Civil Service Retirement System and the Federal Employees Retirement System are paid, in whole or in part, to another person to the extent expressly provided in the terms of a court decree of divorce, annulment or legal separation or a court order or court-approved property settlement incident to one (5 U.S.C. 8345(j); 5 U.S.C. 8467). Kentucky’s symmetry rule also covers public retirement systems of state and local governments.

What does this page not cover in Kentucky?

Veterans’ disability benefits, survivor benefits for a former spouse and tax treatment are separate questions governed by federal law and the plan, and we did not read the Kentucky decisions on them for this page. Ask the plan or a licensed attorney. See the Kentucky property division calculator for the rest of the estate.

Frequently asked questions

Official sources

• KRS 403.190: disposition of property
• KRS 403.200: maintenance
• 10 U.S.C. 1408: military retired pay in divorce
• 26 U.S.C. 414(p): qualified domestic relations orders
• 29 U.S.C. 1056(d)(3): ERISA domestic relations orders
• KRS 403.140: decree of dissolution; residence
• 5 U.S.C. 8345(j): CSRS court orders
• 5 U.S.C. 8467: FERS court orders

This is general information, not legal advice. It is based on the cited Kentucky statutes, rules and court opinions, and every case turns on its own facts. Confirm how the law applies to your situation with a licensed Kentucky attorney.