What is a Survivor Benefit Plan and how does it affect a military divorce?

A Survivor Benefit Plan (SBP) is a program offered by the Department of Defense (DOD) that helps provide financial security to military spouses and children after the death of a service member. It is an annuity, or set of payments, that are paid out of the retired pay of a deceased service member and are sent to their designated beneficiary. It is important to consider a Survivor Benefit Plan when going through a military divorce, as it may significantly affect the division of property. The SBP can be divided between the former spouses, as any portion of the retired pay can be considered when dividing marital property. In Nebraska, the court will consider all assets, including the SBP, when determining the amount to be awarded to either spouse in a divorce. The court can also award a portion of the SBP to the non-military spouse, since they have a certain marital right to the retired pay of a service member. This is done through an Order of Allocation which allows for funds from the SBP to be distributed to the non-military spouse. It is important to consider the implications of a Survivor Benefit Plan before and after a military divorce, as the court may decide to allocate a portion of the SBP to the non-military spouse. This could significantly reduce the amount of money that the service member would receive after their death. It is also important to understand the annual cost of the SBP, as this will be an expense incurred by the service member for the remainder of their life, or until the SBP is canceled.

What is a Survivor Benefit Plan and how does it affect a military divorce?

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