Disposable income Medical Retirement CDRP

Armywarrior23

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Good afternoon, I am trying to understand what the Army considers disposable income as far as Divorce division is concerned. Here’s my situation I am divorced and during the divorce my ex was granted $400 per month of my retirement. I fought it to no success because she was cheating while I was deployed. Judge said oh well didn’t matter. I currently am almost done with the IDES process where I was found 100%DOD/100%VA and will be placed on TDRL. My injuries were combat coded so they are Tax Free from what I was told. I have completed 20 yrs and 6 months active so I will qualify for CDRP. I know that when the VA kicks in My military retirement cannot exceed my LOS amount. My question is I think chapter 61 is not considered Disposable income, but with my retirement being changed to Length of Service amount is it still considered Non Disposable? I know if I file CRSC it’s not considered disposable, but would a Medical Discharge CDRP be divisible? Thanks for everyone’s assistance.
 

RonG

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Hello,

Excellent question.

The process:

--Your disability retired pay will be 75% of your high three.
--Your retired pay will be reduced by the amount of VA compensation received.
--20.5 years active duty x 0.025 = 51.25% longevity multiplier
--high three x 0.5125 = longevity portion of your retirement (and CRDP)--this is what your divisible retired pay will be based. CRDP restores waived longevity retired pay.

CRSC: Is not divisible with a former spouse per current law. However, certain courts have taken into consideration the entire amount of income (funds) a retiree might receive.

Recommend you visit with an attorney in the state where you live, for guidance. I am not an attorney, but Jason Perry, owner of this board, is an attorney. I do not think he practices divorce-related law however.

Ron
 

Jimothy84

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Ohio, for example, does not care. If it shows on a pay stub of some sort, it counts as income.
 

Armywarrior23

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Thank you for your response. The divorce papers pretty much says Disposable income. I know on the DFAS site regulation states Chapter 61 Medical retirement will be deducted before any income is considered disposable. Since my percentage is 100% I assume there is no disposable income left. I will get with JAG to see if maybe they have any insight also.
 

RonG

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Thank you for your response. The divorce papers pretty much says Disposable income. I know on the DFAS site regulation states Chapter 61 Medical retirement will be deducted before any income is considered disposable. Since my percentage is 100% I assume there is no disposable income left. I will get with JAG to see if maybe they have any insight also.
Hello,

Perhaps I can provide some insight.

Your 75% of high three (75% is the maximum multiplier) is the result of the formula I provided above.
It is reduced by the amount of your VA compensation.
It is restored via CRDP (which is longevity retired pay) as follows:
--20.5 years active duty x 0.025 = 51.25% longevity multiplier
--high three x 0.5125 = longevity portion of your retirement (and CRDP)--this is what your divisible retired pay will be based. CRDP restores waived longevity retired pay.

That longevity portion of your retired is subject to division between retiree and former spouse. This is not esoteric; it occurs often.

Again, CRDP is retired pay; additionally, it is not based on any reduction of the disability portion of retired pay.

Seeing JAG is a good idea; a better idea would be to visit with a divorce lawyer familiar with the divorce laws in your state.
Examples:
Texas is a community property state.
Colorado is a common law property state.

Good luck,
Ron
 

oddpedestrian

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File for CRSC ASAP not CRDP CRSC is NOT divisible your order gives her a portion of your retirement as property, remember retired pay is PROPERTY its not alimony its not child support. Thus you are reducing her portion if not entirely and the Howell v Howell decision has it were the courts can not make you "indemnify" her another way.

 

RonG

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Interesting case, however, there is no mention of CRSC in the narrative. Perhaps I overlooked it...

Nevertheless, the 2017 court decision is likely subsequent to the cases of which I read previously where certain courts took the position, "I don't care what is the source of the $xxxx you pay each month; you must still pay it." In other words, the cases which I have mentioned before predated the 2017 decision I suppose.

CRDP is retired pay; therefore, CRDP is divisible with a former spouse. The advice of a divorce attorney in one's state is always a good idea in complicated cases.








CRSC

CRDP

Qualified Injury

combat-linked disabilities

service-connected disabilities

Classification

Special Compensation (not subject to rules and regulations governing military retired pay)

Military retired pay (subject to rules and regulations governing military retired pay)

Federal Taxation

Non-taxable

Taxable, according to your current retired pay Federal Income Tax Withholding (FITW) tax rate

Subject to Division with a Former Spouse

No*

Yes

Subject to Collection / Garnishment

Yes

Yes

SBP (Survivor Benefit Plan) Premiums Deducted

Yes**

Yes

Ron
 
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