About the Course
Introduction
This CLE webinar will discuss how to divide military pensions when the military retiree elects to receive disability pay. The panel will explain why such an election might have tax benefits to the electing spouse and how this election affects the non-military spouse. The panel will offer strategies for anticipating and offsetting a future election to receive disability long after the final divorce decree.
Description
Dividing military pensions is complex, and one wellspring of confusion is how to protect the non-service member spouse if the service member elects disability pay in lieu of monthly retirement pay. The problem arises because the Uniformed Services Former Spouse Protection Act permits state courts to divide "disposable retired pay," but it prohibits dividing disability pay.
If a military retiree elects disability, they must waive their gross retired pay, dollar for dollar, for every dollar of disability to be received, which reduces the amount of "divisible" retirement pay that courts can award. Furthermore, the service member can elect disability benefits at any time, including years after the final divorce decree and without the consent of the former spouse. Thus, exchanging retirement pay for disability could deprive a non-military spouse of their fair share in a divorce or lead to reduced payments without warning.
The non-military spouse, however, has a number of options to protect their interests but foresight and diligence are required.
Listen as our experienced panel of military divorce attorneys discusses how disability affects the division of military pensions and best strategies for anticipating and planning for these types of elections.
Presented By
Ms. Laubach practice focuses on family law, probate, estate planning and military law matters. She previously served on active duty with the United States Army Judge Advocate General's Corps for five years, providing her with a wealth of trial experience and issues related to military law. After leaving active duty, she became a Reserve Judge Advocate prior to going into private practice.
Ms. Puhak is a Senior Associate Attorney at Sullivan & Hilscher Family Law. She is a graduate of the University of South Carolina, where she majored in psychology. Ms. Puhak went on to obtain her Juris Doctor degree from Campbell University- Norman Adrian Wiggins School of Law in 2017. Prior to attending law school, she served our country as a commissioned officer in the U.S. Army.
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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Date + Time
- event
Wednesday, February 4, 2026
- schedule
1:00 p.m. ET./10:00 a.m. PT
I. Types of nondivisible pay
II. Effect of electing disability
A. Military spouse
B. Non-military spouse
C. Dual military couple with and without disability pay
III. Strategies for protecting non-military spouse
The panel will review these and other key issues:
- What is disability pay, and why does it affect retired pay?
- What are the advantages of electing disability pay?
- What is the 10/10 rule?
- What strategies exist for protecting the non-military spouse if disability is elected?
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