Military retirement benefits earned during a marriage are generally considered community property in Arizona. If a service member is not yet eligible to receive retirement pay at the time of divorce, the non-military spouse’s portion may be deferred, meaning its distribution is delayed until the service member actually begins receiving retirement payments. For example, if a couple divorces after 15 years of marriage and the service member has 20 years of qualifying service but is not yet retirement age, the division of the retirement asset will likely be deferred.
The determination of how these retirement assets are divided is significant for ensuring equitable distribution of marital property. This approach allows the non-military spouse to receive their share of the retirement benefits without forcing the service member to retire prematurely. Historically, the complexities of dividing military pensions have led to varying legal interpretations and challenges in divorce proceedings, making a clear understanding of applicable state and federal laws essential.
