Military Retirement, Alimony & Taxes

[ZmansGirl09]

What is the name of your state (only U.S. law)? Nevada

If ex-spouse gets percentage of military retirement, is that from gross or net, and who pays what income taxes? Where can I find that information?

For 2009, we are still legally married, but have been physically (not officially/legally) seperated for 2+ years. For the tax year 2009, she filed MFS without my consent, and by doing so, forced me to also file MFS.

My military retirement's W4 was set at married with 4 exemptions because of the marital status and our two children.

When she forced the MFS federal tax returns, she received a $3,000 refund, but I had to pay $5,200 because of the W4 -- Even though I have been paying her 1/2 of the military retirement (gross) for the entire 2+ years we've been separated.

I've changed my W4 so that she can't do that again with 2010 federal income tax (and taken a $500/mth paycut with it). But now we are drawing up the final divorce papers (self divorce) and I'm wondering the question I started with: If ex-spouse gets percentage of military retirement, is that from gross or net, and who pays what federal income taxes? Where can I find that information?

 

[LdiJ]

What is the name of your state (only U.S. law)? Nevada

If ex-spouse gets percentage of military retirement, is that from gross or net, and who pays what income taxes? Where can I find that information?

For 2009, we are still legally married, but have been physically (not officially/legally) seperated for 2+ years. For the tax year 2009, she filed MFS without my consent, and by doing so, forced me to also file MFS.

She didn't need your consent to file an MFS return. That was her right.

My military retirement's W4 was set at married with 4 exemptions because of the marital status and our two children.

That is the sort of thing that people should adjust when they separate.

When she forced the MFS federal tax returns, she received a $3,000 refund, but I had to pay $5,200 because of the W4 -- Even though I have been paying her 1/2 of the military retirement (gross) for the entire 2+ years we've been separated.

Have you been paying her by court order?, or voluntarily?

I've changed my W4 so that she can't do that again with 2010 federal income tax (and taken a $500/mth paycut with it). But now we are drawing up the final divorce papers (self divorce) and I'm wondering the question I started with: If ex-spouse gets percentage of military retirement, is that from gross or net, and who pays what federal income taxes? Where can I find that information?

If you were married for more than 10 years of your service time, then DFAS will split your retirement and send it to her directly, therefore she will be responsible for the taxes.

If you were married for less than 10 years of your service time, then you will have to pay her yourself. That makes you responsible for the taxes.

You will want DFAS to pay her directly if at all possible. However, if that is not possible then you may want to negotiate something that makes her amount a net rather than a gross amount. Unfortunately that is bit difficult to calculate for the long term.

Edit to add:

Her share of the retirement is not "alimony". Its a property division.

 

[ZmansGirl09]

She didn't need your consent to file an MFS return. That was her right.

I didn't really mean it that way. I know she doesn't need my consent to actually do such a thing, whether we were still in the same house or not. I asked her to file a joint return and she refused, which is what I meant when I said "without my consent."

That is the sort of thing that people should adjust when they separate.

Yup, yet another lesson learned the hard way.

Have you been paying her by court order?, or voluntarily?

Voluntarily. We haven't filed a single paper about anything, yet. Gonna finish that up this month, though.

Her share of the retirement is not "alimony". Its a property division.

True 'dat. Just a habit I've formed when talking about it because its an easier term. Correct in that its not accurate and thank you for pointing that out. Those who might read this thread definitely should realize there is a huge difference.

Thanks for your reply. I truly appreciate it.