Protecting Military Survivor Benefits in a Florida Divorce
When a military service member divorces, one critical issue that often arises is the division and protection of survivor benefits. The Survivor Benefit Plan (SBP), a program designed to provide financial support to a service member’s designated beneficiaries after their death, can become a significant point of negotiation during a military divorce. Ensuring that the SBP is handled correctly in a divorce agreement is vital for both the service member and their former spouse, as it provides financial security for the spouse and family in the event of the service member’s death.
This guide explains how survivor benefits work, how they are addressed in a Tampa military divorce, and what steps you can take to protect your rights.
What Is the Survivor Benefit Plan (SBP)?
The Survivor Benefit Plan (SBP) is an insurance-like program that provides ongoing financial support to a designated beneficiary after the death of a military retiree. It ensures that a portion of the service member’s military retirement pay continues to be paid to the beneficiary. Key features include:
- Eligibility: Typically, the beneficiary is the spouse or former spouse, but it can also include children or another designated individual.
- Coverage: The beneficiary receives 55% of the service member’s retirement pay.
- Cost: The cost of SBP coverage is deducted from the service member’s retirement pay, typically amounting to 6.5% of the gross monthly retirement benefit.
Why Are Survivor Benefits Important in a Military Divorce?
Survivor benefits are crucial because military retirement pay stops upon the service member’s death. Without SBP coverage, the former spouse would no longer receive any portion of the retirement benefits they were awarded in the divorce. This financial gap can create significant hardship, especially for spouses who relied on the military pension for financial stability.
How Florida Courts Handle Survivor Benefits in a Tampa Military Divorce
Florida courts have the authority to address SBP coverage during divorce proceedings. In many cases, the court will require the service member to provide SBP coverage for the former spouse as part of the division of marital assets.
1. Awarding SBP Coverage
When determining whether to award SBP coverage to a former spouse, courts consider several factors, including:
- The length of the marriage and overlap with military service.
- The former spouse’s reliance on the military pension for financial support.
- The fairness of ensuring the former spouse has ongoing financial security.
2. Negotiating SBP in the Divorce Settlement
SBP coverage can be negotiated as part of the overall divorce settlement. For example:
- A service member may agree to provide SBP coverage in exchange for a larger share of other marital assets.
- The cost of the SBP premiums can be negotiated, with either the service member or the former spouse agreeing to cover them.
3. Court Orders and DFAS Compliance
For the SBP designation to take effect, the divorce decree or court order must include specific language directing the service member to elect SBP coverage for the former spouse. The court order must then be submitted to the Defense Finance and Accounting Service (DFAS) within one year of the divorce.
Common Challenges with Survivor Benefits in Military Divorces
1. Timing of the Election
The SBP election must be submitted to DFAS within one year of the divorce decree. Failure to meet this deadline can result in the loss of SBP coverage for the former spouse.
2. Competing Claims
If the service member remarries, the current spouse may also have a claim to SBP coverage. Courts must resolve these competing claims, often prioritizing the former spouse if SBP was awarded in the divorce settlement.
3. Cost of SBP Premiums
The cost of SBP coverage can become a point of contention, especially if the service member believes the premiums are too high. Courts may order one party to cover the cost or split it between the service member and former spouse.
Steps to Protect Survivor Benefits in a Tampa Military Divorce
1. Include SBP in the Divorce Agreement
The divorce decree should include clear and specific language about the SBP election, including:
- The designated beneficiary (e.g., the former spouse).
- The type of coverage (e.g., full coverage or reduced coverage).
- Responsibility for the cost of premiums.
2. File the Court Order With DFAS
To secure SBP coverage, the court order must be submitted to DFAS within one year of the divorce. Working with a Tampa military divorce lawyer can ensure that all necessary paperwork is filed correctly and on time.
3. Consider Alternative Protections
If SBP coverage is not awarded, consider negotiating other forms of financial protection for the former spouse, such as life insurance policies or lump-sum payments.
4. Monitor SBP Designation
Even after the divorce, it’s essential to ensure that the service member has elected the former spouse as the SBP beneficiary. Failure to make the election could result in the loss of coverage, even if the divorce decree requires it.
Tax Implications of SBP Coverage
SBP payments to the beneficiary are considered taxable income, while the premiums paid by the service member are deducted from their pre-tax retirement pay. Understanding these tax implications can help both parties plan for their financial futures.
The Role of a Tampa Military Divorce Lawyer
Navigating the complexities of survivor benefits in a military divorce requires specialized knowledge of Florida family law and military regulations. A Tampa military divorce lawyer can:
- Help you negotiate SBP coverage as part of your divorce settlement.
- Ensure that the divorce decree includes the necessary language to protect your rights.
- File the required paperwork with DFAS to secure SBP coverage.
- Advocate for your interests in court if disputes arise over survivor benefits.
Conclusion: Protecting Your Financial Future With SBP
The Survivor Benefit Plan is a critical resource for ensuring financial stability after a military divorce. By understanding how Florida courts handle SBP coverage and taking proactive steps to protect your rights, you can avoid common pitfalls and secure a fair outcome.
If you’re going through a Tampa military divorce and have questions about survivor benefits, consult an experienced lawyer who can guide you through the process. With the right support, you can protect your financial future and achieve peace of mind.
At The McKinney Law Group, we provide expert legal services in family law, estate planning, and divorce to clients across Florida and North Carolina. Whether you’re seeking a prenuptial agreement in Tampa Bay, Florida, or need assistance with estate planning in Asheville, North Carolina, our experienced attorneys offer customized legal solutions to fit your unique needs.
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If you’re in need of guidance on prenuptial agreements, estate planning, high-asset divorce cases, or other family law matters, contact Damien McKinney at 813-428-3400 or email [email protected] to schedule a consultation.
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