Is TRICARE Health Insurance a Marital Asset in a Military Divorce?
Military divorce health benefits come with their own set of complex rules. Military Divorce Tips discusses how health care coverage (health insurance) can be considered a marital asset. Medical benefits provided by TRICARE may be used in negotiations and calculations dividing marital property in a divorce.
On December 02, 2011, the Alaska Supreme Court ruled on a military divorce medical benefits case, an appeal of LEON BURTS, Appellant, v. ANN BURTS, Appellee (Supreme Court No. S–13822). The court ruled that characterizing medical benefits as marital property was valid.
Background on the case:
In the appeal, Leon Burts questioned the original ruling of the decree where:
“The superior court also characterized 75% of Leon’s TRICARE insurance as a marital asset because the parties were married for 15 of Leon’s 20 years of service. The superior court valued this health benefit at $125,959 based on a report produced by Sheila Miller, and it allocated this value to Leon in its property division. The superior court awarded Ann the marital home and the marital portion of the Thrift Savings Plan (TSP) Leon earned during his federal service.” Read more
In the original decree, the military spouse was awarded compensation for the value of the TRICARE medical coverage.
On appeal, the Supreme Court of Alaska concluded that TRICARE health coverage was to be considered a marital asset. The proposal that TRICARE should be treated different from other health coverage was rejected. They did not accept the arguments that:
- TRICARE is subject to congressional discretion and thus too speculative to be valued; and
- TRICARE is federally authorized which preempts states from considering them in property divisions.
However, the Alaska Supreme court did ask for the value of the benefit to be recalculated:
We affirm the superior court’s characterization of this benefit as marital property, but conclude the court’s valuation was erroneous. We remand for reconsideration of the value of this benefit.
Tell us about military divorce health care in your state
Military Divorce Medical Coverage
Military Spouse Compensation for Loss of Health Care Due to Divorce
Military spouses with a pending divorce might:
- Qualify for lifetime health care if they meet the 20/20/20 rule
- Qualify for CHCBP for one year
- Qualify for CHCBP for lifetime health care
- Qualify for no military health care
Any military spouse who does not meet the requirements for lifetime medical care, might use this Alaska military divorce case as a precedent to present an argument to receive compensation for the value of the service member’s TRICARE and the military spouse’s upcoming medical coverage loss and/or expenses.
Military Divorce Health Insurance – TRICARE After Divorce
The Continued Health Care Benefit Program (CHCBP) is not TRICARE but follows TRICARE rules and it is NOT cheap. See current CHCBP rates here.
How was (or is) the TRICARE health insurance handled in your military divorce? Add your comments below.
I am 20/20/20 ans we have been divorced yen years- he is retired ans I am not remairried. I just lost my state job due to dementia diagbosis ans have no medical- it was my understanding that based on 20/20/20 I get tri-care for life when he retires. Tri told me I am lifetime banned because I let my state insurance go
If you had stayed married for two more years, you’d have TRICARE….RIGHT ?
Besides, spouses don’t “support” their member’s earning retired pay and benefits – the member does that ALL BY THEMSELVES WITHOUT spousal help ! – Read the Law ! ! !
After the USFSPA is repealed/struck down, there won’t be any more emotional unfounded selfish postings ! ! !
Well, The “Affordable Care Act” (aka “Obummercare”) will take effect 1 Oct so, you HAVE TO BUY “medical !
So wht do u , those have lost it do for medical?
After 19 years,10 months of active time, and 24 years married time, I lost my tricare by 42 days. 2 weeks later, a new younger wife was awarded an I.D. card by my former. What a crock!!!
I’m so sorry that happened to you. Both lawyers should have worked together to delay the divorce date.
Any words of advice for those looking at divorce??
A.H.
Legislative persuasion for an amendment to USFSPA (Uniformed Service Former Spouse Protection Act) allowing former spouses to retain medical health insurance benefits and access to the facilities only can be accomplish by creating a former military service spouses’ coalition. The guidelines for such an amendment should follow state family laws which considered 10 years and over a marriage of long term duration.
Martha,
How do we create a coalition? I was married for 18.5 years of 20.5 years and will be giving up health insurance. BUt, his new wife……she will be covered. This is a law that needs to change. In the very least the wife that did not support a spouse in the military should not be covered.
Definitely the BEST and ONLY solution is to REPEAL the USFSPA – then there will be NO self-given autonomousity divorce court arguments about “community property”. The USFSPA has continually created more casualties than beneficiaries.
Someday, Congress is going to get fed up with these “holier than thou” state court divorce judges and pull back all the spousal benefits and pay the military member a higher “salary” and let the member deal with the cost of supporting a family !
Maybe a good solution would be to propose a bill to Congress to let all military spouses keep their health care coverage after divorce. Then no adjustment would be discussed, because nothing would be lost upon dissolution of the marriage.