For decades, dividing a military retirement in divorce followed a familiar pattern. A service member who reached 20 years of service earned a pension, and the former spouse received a share of that pension based on how many of those years overlapped with the marriage. The Blended Retirement System (BRS) changed that picture for a large and growing number of service members. Anyone who joined the uniformed services on or after January 1, 2018, is automatically covered by BRS, and many service members who were already serving at that time chose to opt in during the 2018 enrollment window.
As a result, the retirement package at the center of many divorces involving younger service members looks very different from the legacy system. There is a smaller pension, a government-matched Thrift Savings Plan (TSP), a mid-career cash bonus called continuation pay, and an option to take part of the pension as a lump sum at retirement. Each of these pieces raises its own questions when a marriage ends.
For families connected to MacDill Air Force Base, the Coast Guard units in the region, and the many reservists and National Guard members who live throughout Hillsborough County, these questions are practical, not theoretical. Understanding how BRS works is the first step toward protecting your share of what was built during the marriage.
What Is the Blended Retirement System?
The Blended Retirement System is the military’s current retirement structure. It is called “blended” because it combines two types of retirement savings: a traditional defined benefit pension and a defined contribution account similar to a civilian 401(k).
Under the legacy High-3 system, a service member who retired after 20 or more years received a monthly pension equal to 2.5 percent of their highest 36 months of basic pay, multiplied by their years of service. A service member who retired with 20 years would receive 50 percent of their High-3 average. Service members who left before 20 years typically walked away with no military retirement at all, aside from any personal TSP savings they had set aside on their own.
BRS changes that formula in several important ways. The pension multiplier drops from 2.5 percent to 2.0 percent, so a service member retiring at 20 years receives 40 percent of their High-3 average rather than 50 percent. To offset that reduction, the government now contributes to the service member’s TSP account. After 60 days of service, the Department of Defense makes an automatic contribution equal to 1 percent of basic pay. Beginning after two years of service, the government also matches the service member’s own contributions, up to an additional 4 percent of basic pay. A service member who contributes at least 5 percent of their pay can receive a total government contribution of 5 percent.
BRS also introduced continuation pay, which is a one-time cash payment offered to service members at the mid-career point in exchange for an agreement to serve additional years. Finally, BRS gives retiring service members the option to receive a portion of their pension as a lump sum at retirement, in exchange for reduced monthly payments until they reach full retirement age.
Each of these components can become a point of negotiation or dispute in divorce.
Why BRS Matters More in Divorce Than Many People Realize
Many spouses assume that military retirement is only relevant in divorce if the service member has served close to 20 years. Under the legacy system, that assumption was often reasonable. If a service member was likely to leave before becoming eligible for retirement, the pension had little practical value to divide.
BRS undermines that assumption. Because the government deposits money into the TSP starting early in a service member’s career, there is often real, measurable money in a retirement account even when the service member is only a few years into service. That money is portable. A service member who leaves after six years keeps the vested TSP balance, including government contributions, and can roll it into a civilian retirement plan.
This means that a younger military couple divorcing after five, eight, or ten years of marriage may have a meaningful marital asset sitting in the TSP that did not exist in the same form under the old system. A Tampa military divorce lawyer reviewing a case involving a BRS participant will generally look at the TSP account as an immediate, tangible asset rather than a distant possibility.
At the same time, the pension portion of BRS is still subject to the 20-year requirement. So a BRS divorce often involves two very different types of assets: one that is concrete and valued today, and one that may or may not ever be paid. Handling both correctly requires attention to federal rules as well as Florida law.
How Florida Law Treats Military Retirement Benefits
Florida is an equitable distribution state. Under Florida Statutes section 61.075, courts divide marital assets and liabilities between spouses, beginning with a presumption that an equal division is fair unless there are reasons to justify an unequal split. Retirement benefits earned during the marriage are marital assets, while benefits earned before the marriage or after the cutoff date for identifying marital property are generally nonmarital.
Military retirement is no exception. The Uniformed Services Former Spouses’ Protection Act (USFSPA) gives state courts the authority to treat military retired pay as property in divorce. Florida courts use that authority to divide the marital portion of a service member’s pension.
Florida law applies to the division, but federal law controls how and whether a former spouse can be paid directly by the government. This intersection of state and federal rules is one of the main reasons that military divorces involve more technical drafting than typical civilian cases. An experienced military divorce attorney in Tampa will coordinate the Florida judgment with the specific requirements of the Defense Finance and Accounting Service (DFAS) and the Federal Retirement Thrift Investment Board, which administers the TSP.
Dividing the BRS Pension
The defined benefit pension under BRS is divided using many of the same principles that apply to the legacy system. The key differences come from the lower multiplier and from federal rules that took effect shortly before BRS launched.
The Frozen Benefit Rule
The National Defense Authorization Act for Fiscal Year 2017 introduced what is commonly called the frozen benefit rule. For divorces finalized after December 23, 2016, where the service member has not yet retired, the portion of retired pay that can be divided is based on the service member’s rank, or more precisely their High-3 pay amount, and years of service as of the date of divorce. That figure is then increased by cost-of-living adjustments that occur between the divorce and the service member’s retirement.
In practical terms, the former spouse’s share is tied to where the service member stood at the time of divorce, not where the service member ends up after additional promotions and years of service. This rule applies to BRS participants just as it applies to those in the legacy system.
For the court order to be accepted by DFAS, it must include specific information about the service member’s High-3 amount and years of service (or retirement points, for reservists and Guard members) as of the divorce date. Orders that leave out this information are frequently rejected, which can delay payment for months or even years. A Tampa military divorce lawyer familiar with DFAS requirements will make sure these details are gathered and stated correctly in the final judgment or the separate order dividing retired pay.
The 2.0 Percent Multiplier and Its Effect on Value
Because the BRS pension uses a 2.0 percent multiplier instead of 2.5 percent, the monthly pension is roughly 20 percent smaller than it would have been under the legacy system for the same rank and years of service. That reduction flows through to the former spouse’s share.
This matters when couples negotiate a property settlement. A spouse who assumes that a military pension will look like the pension of a relative or friend who retired under the old system may overestimate its value. Accurate valuation requires using the correct formula, and in many cases, the TSP must be considered alongside the pension to get a full picture of the retirement package.
The 10/10 Rule
Under USFSPA, DFAS will make direct payments of a former spouse’s share of military retired pay only if the marriage lasted at least 10 years and overlapped with at least 10 years of creditable military service. This is commonly called the 10/10 rule.
The 10/10 rule does not determine whether a former spouse is entitled to a share. A Florida court can award a portion of military retirement even if the marriage was shorter. The rule only determines whether DFAS will pay the former spouse directly. If the 10/10 requirement is not met, the service member must pay the former spouse personally, which introduces enforcement risk.
Because BRS applies primarily to service members who joined recently, many BRS divorces involve marriages that are shorter than 10 years or that overlap with fewer than 10 years of service. Settlement agreements in those cases should address how the former spouse will be paid and what remedies exist if payments stop.
Service Members Who Never Reach 20 Years
Under BRS, the pension is still only payable to service members who complete 20 years of active service or qualifying reserve service. Many service members who join today will leave before that point. If the service member separates early, there will be no pension to divide.
Some divorce settlements attempt to account for this uncertainty by trading the former spouse’s potential pension share for a larger share of other assets. Others divide the pension on a contingent basis, meaning the former spouse receives a share if and when the pension is ever paid. The right approach depends on the length of service, the likelihood of a full career, and each spouse’s financial needs.
Dividing the Thrift Savings Plan Under BRS
The TSP is often the most immediately valuable retirement asset in a BRS divorce. It is also governed by a completely different set of rules than the pension.
Marital and Nonmarital Portions of the TSP
In Florida, contributions made to the TSP during the marriage, along with the growth on those contributions, are generally marital property. Contributions made before the marriage and growth on those premarital funds may be nonmarital, although tracing those funds can be complicated when accounts have been invested and reinvested over time.
The TSP account under BRS includes several types of money: the service member’s own contributions, the automatic 1 percent government contribution, and the government matching contributions. All of these can be marital if they were deposited during the marriage. Service members sometimes assume that the government contributions belong only to them because the government made the deposits. Florida law generally does not support that view. Compensation earned during the marriage, including employer retirement contributions, typically counts as marital property.
Vesting of Government Contributions
Under BRS, the service member’s own contributions and the government matching contributions vest immediately. The automatic 1 percent government contribution vests after two years of service. If a service member leaves before completing two years, the automatic contributions and their earnings are forfeited.
For most divorcing couples, this distinction matters only in very early career cases. Still, it is worth confirming the vesting status when valuing the account, particularly in short marriages involving new recruits.
The Retirement Benefits Court Order
The TSP will not divide an account based on a generic property settlement. It requires a Retirement Benefits Court Order (RBCO) that meets the specific requirements of the Federal Retirement Thrift Investment Board. The order must clearly identify the account, state the amount or percentage awarded to the former spouse, and specify a valuation date where needed.
The TSP does not follow the 10/10 rule. A former spouse can receive a share of a TSP account regardless of how long the marriage lasted. The awarded funds can be transferred into a TSP account in the former spouse’s name if they are a federal employee or service member, or paid out directly, with potential tax consequences if the funds are not rolled over properly.
One important detail: service members who have both a uniformed services TSP account and a civilian TSP account, such as a reservist who also works for a federal agency, have two separate accounts. Each account must be addressed separately in the order. A military divorce attorney in the Tampa Bay area will verify which accounts exist before drafting the RBCO.
Timing and Market Changes
Because the TSP is invested in funds that fluctuate with the market, the value can change significantly between the date of separation, the date of mediation, and the date the court order is processed. Well-drafted orders address whether the former spouse’s share should include gains and losses from the valuation date to the date of distribution. Leaving this out can lead to disputes if the market moves sharply before the transfer occurs.
Continuation Pay and Divorce
Continuation pay is one of the most distinctive features of BRS, and it is also one of the least understood in the divorce context.
Continuation pay is offered to eligible service members who have completed between 8 and 12 years of service, with the specific timing set by each branch. For active duty members, the payment ranges from 2.5 to 13 times monthly basic pay. Reserve component members receive a smaller multiple. In exchange, the service member agrees to serve at least three additional years.
Is Continuation Pay Marital Property?
Continuation pay can raise difficult classification questions in Florida divorce cases. If the payment was received during the marriage and deposited into a joint account or spent on marital expenses, it is often treated as marital. If the payment is still sitting in a separate account at the time of divorce, the analysis may turn on how the court views the nature of the payment.
One argument is that continuation pay is compensation for service already performed during the marriage and should be divided like any other earnings. Another argument is that continuation pay is an incentive for future service, and to the extent the required service obligation extends past the divorce, part of the payment is tied to post-marriage labor. Florida courts look closely at the facts in these situations, including when the payment was received, the terms of the service agreement, and how the funds were used.
Service members can also choose to deposit part or all of continuation pay into their TSP account. When that happens, the payment becomes part of the retirement account and is subject to the same division analysis as the rest of the TSP.
Planning Around Continuation Pay
If a service member is approaching eligibility for continuation pay while a divorce is pending, the timing of the payment can become a strategic issue. A Tampa military divorce lawyer will want to know whether the service member has signed the continuation pay agreement, when payment is expected, and how the funds will be handled. Addressing these questions directly in a settlement agreement reduces the chance of later litigation.
The Lump Sum Option at Retirement
BRS allows a retiring service member to elect a lump sum payment in place of part of their monthly pension. The service member can choose to receive either 25 percent or 50 percent of the discounted present value of their retired pay, calculated for the period between retirement and the service member’s full Social Security retirement age, which is 67 for most service members covered by BRS. In exchange, the monthly pension is reduced by the same percentage until the service member reaches that age, at which point the full monthly pension is restored.
How the Lump Sum Affects a Former Spouse
This option creates a real risk for former spouses. If the divorce judgment awards the former spouse a percentage of monthly retired pay, and the service member later elects the lump sum, the monthly payments will be reduced for years. Depending on how the order is written, the former spouse may receive a smaller monthly amount without receiving any share of the lump sum itself.
DFAS guidance and the terms of the court order play a central role in how the lump sum is handled. Well-drafted judgments anticipate this possibility. Common approaches include requiring the service member to share a proportionate part of any lump sum with the former spouse, requiring notice before the election is made, or specifying how the former spouse will be made whole if the election reduces their payments.
Because BRS participants are unlikely to retire for many years, it is easy to overlook this issue at the time of divorce. That oversight can be costly. An attorney handling a Tampa military divorce involving a BRS participant should address the lump sum election even if retirement seems far away.
Survivor Benefit Plan Coverage
The Survivor Benefit Plan (SBP) allows a retired service member to provide a continuing monthly annuity to a surviving beneficiary. Without SBP coverage, a former spouse’s share of military retired pay ends when the service member dies.
A Florida court can order a service member to provide former spouse SBP coverage. However, the election must be properly made and submitted within strict deadlines. The service member must make the election within one year of the divorce, or the former spouse must submit a deemed election request to DFAS within one year of the court order requiring coverage. Missing these deadlines can permanently eliminate a former spouse’s ability to receive survivor benefits.
SBP remains available under BRS, and it applies to the pension portion of retirement. The TSP account, by contrast, is governed by the beneficiary designation on file with the TSP. A settlement agreement should address both, since the former spouse may want protection for the pension share through SBP and protection for any assigned TSP interest through the account structure itself.
VA Disability and Its Effect on Divisible Retired Pay
Many service members eventually receive VA disability compensation. When a retiree receives disability pay, they typically must waive an equal amount of military retired pay unless they qualify for concurrent receipt programs. Disability compensation is not divisible as marital property under federal law.
In Howell v. Howell (2017), the U.S. Supreme Court held that state courts cannot order a service member to reimburse or indemnify a former spouse for reductions in divided retired pay caused by a VA disability waiver. This ruling applies to BRS participants just as it applies to those in the legacy system.
For former spouses, this creates uncertainty. A service member who later receives a disability rating may see a significant portion of divisible retired pay converted into nondivisible disability compensation. Some settlements address this risk by giving the former spouse a larger share of other assets, such as the TSP or equity in the home, rather than relying heavily on the pension. Florida courts may also consider the service member’s disability income when evaluating alimony, which is treated differently from property division.
Reservists and National Guard Members Under BRS
Reserve component members are covered by BRS as well, but their retirement works differently. Instead of years of active service, their pension is based on retirement points earned through drills, annual training, and periods of active duty. The pension generally does not begin until age 60, although certain qualifying active duty service can reduce that age.
For divorce purposes, the court order must state the number of retirement points earned during the marriage, along with the service member’s High-3 information as of the divorce date, to comply with the frozen benefit rule. Reserve and Guard members also accrue TSP contributions and may be eligible for continuation pay, though the amounts differ from active duty.
Tampa is home to a significant number of reservists and Guard members who balance civilian careers with military obligations. Their divorces may involve civilian retirement plans, a uniformed services TSP, a civilian TSP if they work for a federal agency, and a reserve pension that will not be paid for decades. Coordinating all of these assets requires careful organization and a clear understanding of how each one is valued and divided.
Common Mistakes in BRS Divorces
Because BRS is still relatively new in the divorce context, several recurring mistakes appear in settlement agreements and court orders.
The first is treating the BRS pension as if it were a legacy High-3 pension. Using the 2.5 percent multiplier instead of 2.0 percent leads to inflated valuations and unfair trade-offs in negotiation.
The second is overlooking the TSP entirely or assuming it is the service member’s separate property. Government contributions made during the marriage are generally marital, and the account can hold substantial value even for junior service members.
The third is failing to address continuation pay. Whether it has already been paid, has been deposited into the TSP, or is expected in the near future, continuation pay should be identified and addressed.
The fourth is ignoring the lump sum election. A former spouse whose order says nothing about the lump sum may see years of reduced payments without any corresponding benefit.
The fifth is submitting orders that DFAS or the TSP will not accept. Missing information, unclear language, or formulas that do not comply with the frozen benefit rule can lead to rejection. Correcting a rejected order often requires returning to court, which adds cost and delay.
Working with a Tampa military divorce lawyer who regularly handles these issues can help avoid these errors before they become problems.
Jurisdiction and Where to File
Military families often move frequently, and service members may be stationed in Tampa while maintaining legal residence in another state. Under USFSPA, a state court can divide military retired pay only if it has proper jurisdiction over the service member. That generally means the service member is domiciled in the state, resides there for reasons other than military assignment, or consents to the court’s jurisdiction.
To file for divorce in Florida, at least one spouse must have been a Florida resident for six months before filing. Military members stationed in Florida who maintain Florida as their home of record, or who consent to jurisdiction, may be able to divide their retirement in a Florida court. Where jurisdiction is uncertain, the choice of forum can affect how retirement is divided, so this question should be answered early in the case.
The Servicemembers Civil Relief Act (SCRA) also provides protections for active duty service members, including the ability to request a stay of proceedings when military duties materially affect their ability to participate. Deployments and training schedules can affect how quickly a divorce moves forward.
Why Experience With Military Divorce Matters in Tampa
Divorces involving the Blended Retirement System sit at the intersection of Florida family law, federal military pay regulations, and the administrative requirements of DFAS and the TSP. A general family law practice may handle property division well but may not be familiar with the details that determine whether an order is accepted, whether a former spouse is protected against a lump sum election, or how continuation pay should be classified.
For service members, working with a knowledgeable Tampa military divorce lawyer helps ensure that the division reflects the law accurately, that post-divorce service and promotions are protected under the frozen benefit rule, and that obligations are clearly defined. For spouses and former spouses, it helps ensure that the full retirement package is identified and valued, and that the court orders will actually produce payments when the time comes.
The goal in every case is an agreement or judgment that is fair, enforceable, and built on accurate information. When the retirement package includes a smaller pension, a growing TSP, continuation pay, and a future lump sum option, getting those details right has long-term consequences for both spouses.
If you are facing a divorce involving a service member covered by BRS, speaking with a Tampa military divorce lawyer early in the process can help you understand what assets exist, how they are likely to be divided, and what steps need to be taken to protect your interests.
Frequently Asked Questions
Is the Blended Retirement System divided differently than the legacy military retirement in a Florida divorce?
The pension portion is divided using many of the same principles, including the frozen benefit rule and USFSPA requirements. However, the BRS pension uses a 2.0 percent multiplier, which results in a smaller monthly benefit. BRS also adds TSP government contributions, continuation pay, and a lump sum option, each of which must be addressed separately.
Can a former spouse get part of the TSP if the marriage lasted less than 10 years?
Yes. The 10/10 rule applies only to direct payment of military retired pay by DFAS. It does not apply to the TSP, which can be divided through a Retirement Benefits Court Order regardless of the length of the marriage. The marital portion of the account is generally subject to division under Florida law.
Are the government matching contributions in the TSP considered marital property?
In most cases, yes. Florida generally treats compensation earned during the marriage as marital, and that includes employer retirement contributions. Government contributions deposited into the TSP during the marriage, along with their growth, are typically part of the marital estate.
What happens to my share of the pension if my former spouse takes the BRS lump sum?
If your court order does not address the lump sum election, your monthly share may be reduced until the service member reaches full retirement age. Well-drafted orders include language that protects the former spouse, such as a proportionate share of the lump sum or other compensation. This issue should be addressed at the time of divorce, not at retirement.
Is continuation pay divided in divorce?
It can be, depending on the facts. Continuation pay received and used during the marriage is often treated as marital. When the payment is tied to service obligations that extend beyond the divorce, or when it has been deposited into the TSP, the classification may require closer analysis by a Tampa military divorce lawyer.
What if the service member leaves the military before 20 years?
Under BRS, the pension is paid only after 20 years of qualifying service, so an early departure means there will be no pension to divide. The TSP, however, remains with the service member and can still be divided. Settlements often account for this uncertainty by adjusting how other assets are distributed.
Does the frozen benefit rule apply to BRS participants?
Yes. For divorces finalized after December 23, 2016, the divisible portion of retired pay is based on the service member’s High-3 pay and years of service at the time of divorce, adjusted for cost-of-living increases. The court order must include that information for DFAS to process it.
Can VA disability pay reduce a former spouse’s share of retired pay?
It can. When a retiree waives retired pay to receive VA disability compensation, the waived amount is no longer divisible, and federal law prevents courts from ordering the service member to reimburse the former spouse for that loss. Settlements sometimes account for this risk through the division of other assets.
Written by Damien McKinney, Founding Partner
Damien McKinney is the Founding Partner of The McKinney Law Group Family & Divorce Lawyers, bringing nearly two decades of experience to complex marital and family law matters. He is licensed in both Florida and North Carolina and has been repeatedly recognized as a Rising Star by Super Lawyers.