Military divorces can be a little more complicated than other divorces – especially when it comes to finances. One of the biggest sources of confusion for both servicemembers and their ex-spouses is how military pay and benefits, especially the Basic Allowance for Housing (BAH) and the Basic Allowance for Subsistence (BAS) are handled.
Here’s what you should know about how BAH and BAS affect support decisions if you or your spouse serves in the military and you are about to divorce:
The basics of BAH and BAS and support obligations
The Basic Allowance for Housing is a monetary allowance given to members of the armed forces for housing when they do not live in military housing. The BAH amount varies based on the service member’s location, rank and number of dependents. The Basic Allowance for Subsistence is a flat-rate monetary allowance that is designed to cover meals.
Although neither benefit is considered “taxable income” for the servicemember, they are both considered part of a servicemember’s total compensation – and they are typically counted when calculating how much child support (and possibly spousal support) a military member can pay or may be owed.
In general, support guidelines will look at a parent’s gross pay. For servicemembers, that includes their base pay, special duty pay, bonuses and their BAH and BAS allowances. When making decisions about how much a military member owes or is owed in child support, the courts will also likely consider additional factors, such as:
- Whether the child or children live with the service member
- Whether the BAH is used to pay for the child’s home
- Whether the BAH rate changes after a custody decision
It’s also important to understand that BAH is always awarded to the service member – not their spouse or ex-spouse. That means that an ex-spouse cannot directly receive the BAH with-dependents rate directly, even though the figure may be part of the calculations used to determine support obligations.
What happens to support obligations when the BAH changes
Disruptions to family structure and life are the norm when it comes to a divorce, and situations can be fluid. Several military branches have interim support guidelines that must be followed while a divorce is pending – but the BAH can ultimately change once custody issues have been solidified.
If custody shifts and the child no longer resides with the service member, for example, the service member may lose entitlement to the dependent-rate BAH – although they may be entitled to a BAH-differential rate. The changes can ultimately trigger a modification to the child support that is paid or owed.
What does this ultimately mean for service members and their spouses during a divorce? Regardless of whether you expect to pay or receive support, it’s essential to keep all your documentation regarding income and benefits, track any changes to the service member’s BAH and BAS status and work with an attorney who is familiar with military family law. Trying to navigate the complex financial issues alone can be unnecessarily stressful and disastrous.