Present Value Offset
Present Value Offset - Military Retired Pay Division
Waiving the Former Spouse Award in Military Retirement Pay Division
Present Value Offset refers to trading something of equivalent value in exchange of waiving the former spouse right (assuming your state gives that 'right')
to a portion of retired pay. Former spouses should carefully consider the consequences of waiving retired pay. The book
Military Divorce Tips covers
the details of dividing military benefits in a divorce. It does not cover the Present Value Offset option. The links below provide more information on this topic.
- Valuing the Military Retired Pay
Article Note: "This is one plan where for Reservist and National Guard, the value of the points increase prior to retirement based upon the increases
in the basic pay (income before retirement). In effect the points become more valuable as time goes on. This is important if the court is going to award
a share of the military retired pay through a court order."
- Present Value Offset
Discussion of the importance of requesting assistance from a good financial accountant when valuing the retirement pay.
- Retirement Benefit = Largest Marital Asset
"The probability of finding other marital property equal or greater in value to offset the present value
of military retired pay is relatively low."
