Family Law

Survivor Benefit Plan and Divorce: What Military Families Need to Know

By Ted Smith, Attorney · Originally published March 27, 2019. Updated July 16, 2026.

Military households are busy: deployments, relocations, temporary duty, and raising a family in between. It’s common for neither the servicemember nor the spouse to have given much thought to the Survivor Benefit Plan, or SBP, until a divorce is already underway. When a military marriage ends, SBP deserves the same attention as current pay, allowances, and retirement division.

What SBP Is

SBP works like an annuity. It pays a portion of a military retiree’s retired pay to a named beneficiary after the retiree dies. Without SBP coverage, retired pay simply stops on the retiree’s death, and any dependent relying on that income loses it entirely.

SBP Coverage for a Former Spouse

A former spouse can become an SBP beneficiary, including a former spouse who divorced before the servicemember actually retired. Coverage may result from the member’s voluntary election or a qualifying court order requiring former-spouse coverage. A former spouse may submit a deemed election when a court order requires that coverage.

If the divorce happens after retirement, spouse coverage ends at divorce; it does not automatically carry over as former-spouse coverage. The retiree must make a qualifying former-spouse election, or the former spouse must submit a valid deemed-election request when a court order requires coverage, within the applicable one-year deadline. If the divorce happens before retirement, the intended coverage level should be spelled out in the court order and implemented through the required election.

The One-Year Deadline Nobody Can Miss

This is the detail that trips families up most often: SBP coverage for a former spouse is not automatic. When a court order requires former-spouse coverage, the former spouse may submit a deemed-election request to the Defense Finance and Accounting Service (DFAS) within one year of that order. The request must include DD Form 2656-10 and the supporting documents DFAS requires, including a certified copy of the court order and divorce decree. Miss that window, and the coverage the court ordered may never take effect.

Once the deemed election is properly filed, the servicemember cannot refuse or fail to carry out the required election. If you are the former spouse relying on SBP coverage, calendar this deadline the same day the divorce decree is signed.

Who Pays for the Coverage

SBP is an elected benefit, not a free one. DFAS generally deducts premiums from retired pay. Divorcing spouses can allocate or reimburse the economic cost between themselves in a decree or agreement, but that private allocation does not change how DFAS collects the premium.

What Happens if the Former Spouse Remarries

If the former spouse remarries before turning 55, SBP coverage as a former-spouse beneficiary is suspended. If that later marriage ends, in divorce or death, coverage can resume. This is worth planning around if remarriage is a realistic possibility.

Effective former-spouse coverage and current-spouse coverage cannot coexist, except as federal law permits through its termination, suspension, and eligibility rules.

Reserve and National Guard Considerations

SBP works differently for members of the Reserve and National Guard than for active-duty retirees, particularly around when coverage can begin and how eligibility is calculated. If your servicemember spouse served in the Guard or Reserve, this needs a direct conversation with an attorney familiar with those distinctions.

Why This Matters Around Fort Hood

Central Texas has one of the largest concentrations of military retirees and families in the country because of Fort Hood (formerly Fort Cavazos). A divorce involving a Fort Hood retiree or soon-to-retire servicemember almost always touches more than SBP alone. Retired pay division, the Survivor Benefit Plan, and, for some families, VA disability compensation running alongside military retired pay, all interact with each other. Getting the paperwork right and filed on time matters as much as getting the numbers right, because DFAS enforces the one-year SBP deadline strictly regardless of how the rest of the divorce is proceeding.

If you or your spouse are stationed at or retiring from Fort Hood, build your SBP decision into the divorce timeline early rather than treating it as paperwork to handle after the decree is final.

FAQ

Does SBP coverage transfer to a former spouse automatically after divorce? No. When a court order requires former-spouse coverage, the former spouse may file a deemed election with DFAS within one year of that order, using DD Form 2656-10 and the required supporting documents, or the coverage may not take effect.

Who is responsible for paying SBP premiums after a divorce? Either spouse, or a combination, depending on what the parties agree to or what the court orders. Premiums are a set percentage under federal law.

What happens to SBP coverage if I remarry after my divorce? If you remarry before age 55, your coverage as a former-spouse beneficiary is suspended. It can resume if that marriage later ends.

Can my former spouse’s new spouse become the SBP beneficiary instead of me? Effective former-spouse coverage generally precludes current-spouse coverage while it remains in effect, subject to federal termination, suspension, and eligibility rules.

Is SBP handled differently for Guard and Reserve retirees? Yes. Reserve and National Guard SBP rules differ from active-duty rules in several respects. Discuss your specific situation with an attorney.

Sources

Divorces involving military retirement pay and SBP have real deadlines that don’t wait for the rest of the case to settle. Ted Smith is a former active-duty Army JAG officer who served at Fort Hood (formerly Fort Cavazos), and our team has helped Central Texas military families work through these deadlines for years. Call or text (254) 690-5688 for a consultation, or learn more about how we work with military and veteran families.