Survivor Benefit Plan (SBP) coverage is a benefit commonly awarded to former spouses in military divorce cases in Virginia, particularly where the spouse will be receiving a significant share of the servicemember’s military retired pay.Do I have to pay taxes on military retirement pay?
Military retirement pay is considered taxable income by the IRS unless you retired because of a disability. Like civilians, federal tax is withheld from each check or direct deposit.Can my spouse get half of my military retiremen?
The spouse only can get half of the retirement pay if married the entire 20 year period the military member was in the service. The spouse is entitled to the corresponding percentage and the agreed upon amount during the divorce hearings.Is military retired pay a qualified retirement plan?
Military retirement is considered a non-qualified plan. The term "qualified retirement plan" applies to plans covered by the Employee Retirement Income Security Act, or ERISA. ERISA only covers private sector retirement plans.