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For military officers

Federal law creates a distinct prenup landscape for military families

USFSPA governs how military retired pay may be divided. The Blended Retirement System, TSP, SBP elections, and deployment timing all introduce considerations that civilian prenup templates do not address.

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The federal framework

Military retirement is governed by federal statute, not just state law

The Uniformed Services Former Spouses Protection Act (1982) authorizes state courts to divide disposable military retired pay as marital property. This means your pension may be treated as a divisible asset regardless of which state you reside in at the time of divorce.

The 10/10 rule adds another layer: if a marriage overlaps with at least 10 years of creditable military service, DFAS (Defense Finance and Accounting Service) can make direct payments to a former spouse. This threshold does not create or eliminate a right to division. It only determines the payment mechanism.

A prenup can address how military retired pay is characterized before the marriage begins, potentially simplifying what would otherwise be a complex division calculation based on the coverture fraction. Your attorney can review how your state applies these federal rules.

Key federal statutes

USFSPA (10 U.S.C. 1408)

Authorizes state courts to treat military retired pay as divisible property

10/10 rule

Determines DFAS direct payment eligibility based on marriage/service overlap

SCRA (50 U.S.C. 3901)

Servicemembers Civil Relief Act protections during active duty

5 U.S.C. 8401 (TSP)

Federal Employees Retirement System governing TSP division

Retirement benefits

Three retirement vehicles, each with distinct division rules

Pension (High-3)

2.0% x years served x High-3 average base pay

Under the Blended Retirement System, retired pay is calculated using the average of the highest 36 months of basic pay. A prenup can address how pension value accrued during the marriage may be treated separately from pre-marriage service.

TSP contributions

1% automatic + up to 4% based on your contributions = 5% total

The Thrift Savings Plan has its own federal division rules distinct from civilian 401(k) plans. A prenup can clarify how TSP contributions and growth during the marriage are characterized.

Survivor Benefit Plan

Up to 55% of retired pay as survivor annuity

SBP elections made at retirement can have significant financial implications for a former spouse. A prenup can address how SBP coverage decisions are handled. Your attorney can review the interaction with state law.

Compensation complexity

Total military compensation is 30 to 45 percent higher than base pay alone

Several allowances and special pays are tax-free, which means they may be treated differently in a prenup. Your attorney can review which components are appropriate to address.

Component Example amount Taxable
Base pay O-3 at 10 YOS: approximately $7,571/mo Taxable
BAH (Basic Allowance for Housing) Varies by location and dependents Tax-free
BAS (Basic Allowance for Subsistence) $311.68/mo (officer rate) Tax-free
Flight pay Up to $1,000/mo Taxable
Aviation bonus Up to $35,000/yr Taxable
Hostile fire pay $225/mo Tax-free

Amounts shown are approximate and vary by rank, years of service, duty station, and current DoD pay tables. Tax-free allowances may affect how income is calculated for support purposes.

Deployment and timing

Why timing matters more for military couples

Military couples often marry younger than their civilian counterparts, in part because marriage unlocks BAH at the "with dependents" rate, TRICARE coverage for a spouse, and base housing eligibility. This means the prenup conversation often happens earlier in a career, when future pension value and total compensation are still growing significantly.

The Servicemembers Civil Relief Act (SCRA) can affect legal proceedings involving service members on active duty. While SCRA primarily applies to court actions and default judgments, it underscores the importance of completing a prenup before a deployment or PCS move creates logistical complications.

Frequent PCS (Permanent Change of Station) moves also raise jurisdiction questions. The state where you sign a prenup, the state where you establish domicile, and the state where you might eventually divorce can all be different. Your attorney can review which state's laws are most likely to govern your agreement and whether choice-of-law provisions should be included.

How Neptune works

Three steps to a prenup that addresses federal military rules

01

Military-focused intake

Neptune asks about your branch, rank, years of service, retirement system, and special pays in plain language. No legal jargon required.

02

Two independent attorneys

Each partner is connected with a separate, licensed attorney who can review how federal military benefits and state property law interact for your situation.

03

Agreement addressing federal rules

Your attorney drafts an agreement that can address pension division, TSP treatment, SBP elections, and deployment-related timing. Turnaround is typically around 3 to 4 weeks.

Transparent pricing

One flat fee. Two independent attorneys.

$5,000

per couple, total

Drafting attorney $3,000
Reviewing attorney $2,000

Rush pricing applies when the wedding is within 45 days. No payment required to get started.

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Common questions from military officers

How is my military pension handled in a prenup?

Under the Uniformed Services Former Spouses Protection Act (USFSPA), state courts may treat disposable military retired pay as marital property subject to division. A prenup can establish how pension benefits accrued during the marriage are characterized versus those earned through pre-marriage service. Your attorney can review how your state applies USFSPA and whether specific formulas or caps should be referenced in the agreement.

What is the 10/10 rule and how does it affect my prenup?

The 10/10 rule determines whether a former spouse can receive military retired pay directly from DFAS (Defense Finance and Accounting Service). If the marriage overlapped with at least 10 years of creditable military service, DFAS can make direct payments. If the overlap is shorter, the former spouse may still receive a share but must collect it from the service member directly. A prenup can address division terms regardless of whether the 10/10 threshold is met. Your attorney can help clarify how this rule applies to your timeline.

I'm about to deploy. Can I still get a prenup done?

The Servicemembers Civil Relief Act (SCRA) provides certain legal protections during deployment, including the ability to stay civil proceedings. For prenup purposes, the key consideration is timing: both parties need to be available (in person or remotely, depending on state requirements) for consultations and signing. Neptune attorneys are experienced working with military timelines, and virtual consultations can help accommodate pre-deployment schedules. Your attorney can review any state-specific requirements about physical presence.

What about my TSP and SBP?

The Thrift Savings Plan has its own federal rules for division that differ from civilian retirement accounts. A court order dividing TSP must follow specific formatting requirements set by the Federal Retirement Thrift Investment Board. The Survivor Benefit Plan involves elections made at retirement that can affect a former spouse. A prenup can address how both TSP balances and SBP elections are treated. Your attorney can review the federal requirements and how they interact with your agreement.

What does it cost and how long does it take?

Neptune charges a flat fee of $5,000 per couple, which covers two independent attorneys (one for each partner). No payment is required to get started. Turnaround is typically around 3 to 4 weeks when both partners use Neptune attorneys. Rush pricing applies when the wedding is within 45 days.