Military Income Available For Family Support In Colorado

Are you involved in a divorce or child custody case involving child support? (The Colorado statutory tiles for these are dissolution of marriage and allocation of parental responsibilities). An experienced Colorado Springs divorce and child custody lawyer can guide you through the legal process and assist you in exploring your options. You have one bite at the apple in the court system so make it count.

Income determination is essential for support determinations and Colorado has a broad definition of income. A military member’s Leave and Earnings Statement (LES) shows the pay that a military member receives along with other important information such as whether the member has a Thrift Savings Plan or an IRA. For those not familiar with the military, the LES can appear complicated as it contains far more information than a typical civilian pay statement. Both basic pay and housing and food allowance count as income for support purposes. In re L.K.Y., 410 P.3d 492 (Colo. App. 2013). If a servicemember spends any part of a month in a combat zone, all pay and allowances for that month are tax-free up to a limit for officers. There are many categories of military pay, however at a basic level it consists generally of:

(1) Basic Pay

(2) Basic Allowance for Housing (BAH)

(3) Basic Allowance for Subsistence (BAS)

Basic pay is a servicemember’s monthly salary exclusive of allowances. The salary varies depending on pay grade and length of service. Members receive longevity pay increases every two years, up to a capped number of years of service which varies by pay grade. Military pay is public information and current and historical pay charts can be found at the Defense Finance and Accounting Service website. Pay also increases annually in January as well based on a cost-of-living adjustment. Basic pay is taxable; however, the allowances are tax free.

Basic Allowance for Housing (BAH)

The first type of common allowance is BAH. Military members are provided with on-base housing or a housing allowance to reside off base. The allowance is called a Basic Allowance for Housing. The amount of BAH varies by location, pay grade, and the existence of dependents. Members with dependents receive a higher amount of housing allowance. BAH is shown on the LES, however since it is not taxable, it is not shown on a member’s W2 or tax return.

The second type of common allowance is BAS. Military members are eligible either to dine at base meal facilities or receive a food allowance. Members who are not receiving government meals receive a Basic Allowance for Subsistence (BAS). There is an officer rate and an enlisted rate. Because BAS is intended to provide meals for the servicemember, the amount is linked to the price of food. Each year it is adjusted based on the increase of the price of food as determined by the United States Department of Agriculture. BAS is not increased due to the existence of dependents.

Servicemembers stationed overseas typically receive additional allowances to compensate for the higher cost to live outside of the United States. The most common overseas allowances are:

(1) Cost of Living Allowance (COLA). This is an allowance designed to compensate for additional expenses involved in living overseas. It varies based on rank, years of service, dependents, and location. It is intended to equalize the ability to purchase between overseas assignments and duty in the United States. For example, monetary exchange rates differ in other countries. Servicemembers may also have to purchase new items, such as clothing, suitable for the foreign country destination.

(2) Overseas Housing Allowance (OHA). The overseas housing allowance is commensurate with local housing costs overseas.

(3) Per Diem. A per diem rate is a daily rate that accounts for excess daily expenses during travel away from home.

(4) Hardship Duty Pay. This compensates a member for serving in a remote area without customary facilities and conveniences.

Disability pay is not divisible incident to a divorce, but it is considered as income for the purposes of determining alimony and child support. It is a common myth among servicemembers that disability pay does not count as income for support purposes. However, in In re M.E.R-L., the Colorado Court of Appeals held that a veteran’s disability benefits were income for child support pursuant to C.R.S. § 14-10-115, which includes “gross income from any source.” The court determined that the fact that the income was nontaxable did not mean that it was not income available for support.

Turning Change Into Opportunity in Colorado Springs, Colorado Divorce and Child Custody

A highly knowledgeable and experienced Colorado Springs divorce and child custody lawyer can guide you through Colorado Springs divorce and child custody matters by negotiating, mediating and litigating on your behalf. You can focus on moving to a better future instead of spending your time attempting to navigate complex legal rules and procedures.

Sabra Janko from Janko Family Law has more than 20 years of legal experience and has written “the book” on Colorado divorce and family law – “Colorado Family Law With Forms”, published by LexisNexis, which you can find at https://store.lexisnexis.com/products/colorado-family-law-with-forms-skuSKU02903. Contact us at 719-344-5523 or complete our online scheduling request for a free 30-minute informational consultation. We also offer paid advice sessions for a more in-depth analysis of your case.