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

By the FigureMyTax Editorial Team · How we calculate

Wyoming can divide military and federal retirement as property but may not consider veterans’ disability benefits or indemnify a spouse for a waiver of retired pay. Federal law caps all court-ordered payments of military retired pay at 50 percent, and direct payment needs a 10-year overlap.

Is military retirement divided in a Wyoming divorce?

It can be, with a state limit: the court shall not consider federal disability benefits awarded to a veteran for service-connected disabilities, indemnify a spouse for a waiver or reduction of retired pay related to receiving them, or award other income or property of the veteran as compensation for that waiver (Wyo. Stat. 20-2-114(b)). 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 Wyoming?

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)). Wyoming sets no percentage of its own for the pension, so the federal limit is the ceiling that applies; the Wyoming pension division calculator shows the share against it.

What is the 10/10 rule in Wyoming?

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 Wyoming?

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 servicemembers qualify to file in Wyoming?

The residence rule asks that a party reside in the state for the 60 days before filing (Wyo. Stat. 20-2-107); see the Wyoming divorce residency and where to file post and ask a licensed attorney how it applies to stationed servicemembers.

What about federal civilian pensions in Wyoming?

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).

What does this page not cover in Wyoming?

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

Frequently asked questions

Official sources

• Wyo. Stat. 20-2-114: disposition of property
• Wyo. Stat. 20-2-112: examination concerning property interests
• Wyoming Retirement System: domestic relations order form
• 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
• 5 U.S.C. 8345(j): CSRS court orders
• 5 U.S.C. 8467: FERS court orders
• Wyo. Stat. 20-2-107: residential requirements

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