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Retired military pay settlements require careful wording

It is almost impossible to overstate the importance of wording in a contractual agreement. The fact is, once parties sign on the dotted line, both are responsible for fulfilling their promises in accordance with how the contract is written. This means when you draw up a contract, it is extremely important that you understand what the contract really means and not just what you believe is implied.

This idea can extend to the division of military benefits. Military couples who are going through a divorce may not realize it, but when determining how military retirement pay is to be divided, they must be careful how their final settlement agreement is written. The Defense Finance and Accounting Service requires that when it comes to dividing military retirement pay, any order used must be written unambiguously and clearly.

Some of the items that may be found in a military retirement pay settlement include the following:

  • A percentage of retirement pay that is determined hypothetically and is contingent upon the service member’s rank and pay rate at the divorce date.
  • A percentage of retirement pay that is considered disposable.
  • A percentage of retirement pay determined by the pay table being used at the time the service member becomes eligible for retirement.
  • A fixed dollar amount.

Clearly, crafting a settlement agreement can become very complicated. However, in the long run, a detailed settlement is for the best as it gets all involved parties on the same page.

It takes an experienced hand to help write what will be a binding agreement. If you are involved in a military divorce and want to make sure that your retirement pay settlement is satisfactory, you may wish to contact a Texas divorce attorney. The attorney can help you create an understandable agreement that could save you from having problems in the future.

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