What is Military Disposable Retired Pay?

Importance of Understanding Disposable Retired Pay

One aspect of retired pay that is frequently overlooked is the difference between gross and disposable pay. It might not seem like a very important subject, but a misunderstanding regarding this can make a difference of hundreds of dollars each month. Disposable retired pay is a term defined in the United States Code 1408 which deals with how court orders are complied with.

In order to avoid mistakes regarding disposable pay, it's important to hire a Colorado Springs military divorce attorney who will make sure you don't fall into any legal pitfalls. Without one, you can easily make a costly mistake that will be too late to change.

How Disposable Retired Pay is calculated

The disposable pay is computed by taking the gross retired pay and making certain deductions. There are four such deductions that can be made. Let's look at them below.

Overpayments

In case a member has been overpaid during previous installments, this amount is deducted from the retired pay. Naturally, this can't be taken into account for any calculation based on retired pay of a Service Member (SM).

Court Martials or for other Benefits

In case a court marital orders certain forfeitures from the retired pay, these are eligible for deduction. In addition, there are certain benefits that federal employees receive and these might necessitate a portion of the pay to be removed each month (such as insurance premiums). Both of these deductions need to be taken into account before determining disposable pay.

Disability Benefits

These are generally exempt from being taken away by a court order. The amount under Chapter 61 made using certain computations needs to be deducted from the gross pay.

Survivor Benefit Plan Deductions

Deductions made for keeping the Survivor Benefit Plan in tact need to be deducted for computation of disposable pay.

Hiring a Colorado Springs Military Divorce attorney

The computations for which deductions are valid for calculating disposable pay are complex. The one involving disability pay is specially difficult and it's recommended that you get a proper attorney to help you out with this. Remember - don't do this on your own! You'll be likely to get a poor deal which you'll regret later on. Our Clawson & Clawson attorneys are here to help you with your military divorce issues and can accurately guide you in matters such as those relating to disposable retired pay. Contact us now for a free initial consultation.