Understanding Military Benefits Division in Texas Divorce Cases
If you’re a retired military service member facing divorce in Dallas or the surrounding areas including Irving, Richardson, Garland, Mesquite, DeSoto, Grand Prairie, Lakewood, Highland Park, Cockrell Hill, Lancaster, Seagoeville, and Duncanville, understanding how Texas courts handle your military retirement pay is crucial. A recent decision from the Court of Appeals of Texas highlights critical limitations on what divorce decrees can require regarding military disability benefits. Whether you’re working with a Dallas divorce attorney to protect your interests or you’re concerned about your former spouse’s claims on your retirement income, this case illustrates the complicated intersection of federal military law and Texas family law.
Per the published opinion, the case of P.M. v. A.M., decided in December 2025, clarifies what trial courts cannot do when dividing military retirement pay. Specifically, it addresses a critical question: can a Texas divorce court order a military retiree to reimburse their former spouse if they decide to waive military retirement pay and accept Veterans Administration disability benefits instead? The court’s answer has significant implications for military members navigating divorce settlements and for Dallas family law attorneys advising clients about settlement terms.
This article analyzes the M. case in detail, explaining the legal precedents that guided the court’s decision, what military service members need to know about protecting their benefits, and how working with an experienced divorce lawyer in Dallas can help you navigate these complex issues.
Case Background: The Essential Facts
P.M. and A.M. signed a Mediated Settlement Agreement (MSA) on May 11, 2023, which contained a provision that A.M. would receive 50% of the community portion of P.M.’s net disposable retired military pay. The agreement appeared straightforward on its surface, but it contained a critical ambiguity that became the source of significant litigation.
A.M. became concerned that P.M. could unilaterally waive his military retirement pay at any time and elect to receive non-divisible Veterans Administration (VA) disability benefits instead. This would have the effect of reducing or eliminating A.M.’s payments while giving P.M. the benefit of military service without shared community property division. During the trial court hearings in October 2023 and January 2024, A.M. requested that the trial judge include protective language in the final divorce decree.
The trial court agreed with A.M.’s position and included a provision stating that P.M. “shall not convert, buy civil service retirement or otherwise modify the terms or payment structure of his military retirement pay in any manner that will negatively impact” A.M.’s payments. The decree further stated that if P.M. waived his military retirement pay for disability benefits, he “shall make [A.M.] whole by paying [her] directly that amount that [her] monthly payment is reduced by such action.”
P.M. appealed this modification to the Mediated Settlement Agreement, arguing that the trial court exceeded its authority in restricting his right to elect disability benefits. The case was transferred to the Court of Appeals of Texas, Corpus Christi-Edinburg division, which had to determine whether the trial court properly protected A.M.’s interest while respecting federal law regarding P.M.’s rights.
The Law: What Courts Can and Cannot Do with Military Benefits
The Distinction Between Divisible and Non-Divisible Benefits
Texas law permits trial courts to divide military retirement pay in accordance with state law, but there’s a critical limitation: courts can only divide “disposable retired pay.” This term specifically excludes disability pay, including any retirement benefits that can be waived to collect disability benefits. This distinction is essential for anyone working with a Dallas divorce lawyer on a military member’s case.
Under federal law, a retired military member has the right to waive retirement pay and elect to receive VA disability benefits instead. This right is absolute and cannot be restricted by state divorce courts. The M. court, citing the landmark case G. v. G. (2009), noted that “a divorce court cannot apportion military retirement pay which has been waived to receive Veterans Administration disability benefits.”
The Prohibition Against Restricting the Right to Elect Disability
The case of F. v. F., decided by the San Antonio Court of Appeals in 2003, established that “a Texas court cannot expressly or impliedly prohibit a retired service member from unilaterally waiving some or all of his disposable retired pay after divorce in exchange for VA disability benefits.” This precedent directly applies to the protective language that the trial court in the M. case attempted to include.
The M. court emphasized that the trial court’s prohibition on P.M. converting or modifying his retirement pay “in a manner that would harm” A.M., including specifically waiving retirement for disability, was erroneous. Even though the trial court’s intention was to protect the former spouse’s financial interest, the order violated federal law by restricting the military member’s constitutionally protected right.
Reimbursement Obligations and the Limitation of Settlement Agreements
One of the most significant aspects of the M. decision concerns whether a military member can be required to reimburse a former spouse if he elects to waive retirement and receive disability benefits instead. The trial court included language requiring P.M. to “indemnify and reimburse” A.M. for “any such losses and consequential damages” if his election reduced her share of his Concurrent Retirement and Disability Pay (CRDP).
The appellate court found this requirement equally problematic. Citing L. v. L. (2002), a Waco Court of Appeals case that had attempted a similar reimbursement approach, the M. court concluded that the trial court could not require the military member to reimburse the payment amount to the former spouse. The court reasoned that federal law properly gave the military member the right to make this election, and state law cannot effectively prevent or penalize the exercise of federal rights through indirect means like mandatory reimbursement.
This principle is important for anyone working with a Dallas child support lawyer or Dallas child custody lawyer on cases where military benefits are involved. While courts can divide the community portion of retirement pay earned during marriage, they cannot create financial consequences that effectively restrict a service member’s federal rights.
The Mediated Settlement Agreement Issue
The M. court also addressed A.M.’s argument that the Mediated Settlement Agreement lacked a “meeting of the minds” and was therefore unenforceable. Under Texas Family Code § 6.602, a settlement agreement signed by both parties and their attorneys, with proper notice that it’s not subject to revocation, is binding on both parties. The court cannot modify such agreements or resolve ambiguities once everyone has signed it.
The court determined that because the MSA complied with the statutory requirements, including prominent notice in bold, underlined capital letters and signatures from both parties and their attorneys, the settlement agreement was binding. The trial court erred not only in modifying the agreement but also in failing to allow the parties to present evidence about whether a true meeting of the minds had occurred. This aspect of the decision reinforces the importance of carefully drafting settlement agreements in military-related cases, as courts have limited ability to fix problems after execution.
What This Means for Dallas-Area Divorcing Couples
The M. v. M. decision sends a clear message to both military service members and their former spouses in the Dallas area: federal law supersedes state law when it comes to a retired military member’s right to elect disability benefits. This has several important implications.
If you are a retired military member, you retain absolute control over whether to waive retirement pay and accept VA disability benefits. No divorce decree can prevent this election or require you to compensate your former spouse if you make it. This right exists regardless of how the divorce settlement is written. A Texas court cannot restrict it, and settlement agreements cannot effectively prevent it.
If you are a former spouse seeking to protect your interest in military retirement pay, you should understand that certain protective strategies will not be enforceable. Prohibition language and reimbursement requirements will be struck down. Instead, alternative approaches might focus on negotiating the initial division percentage or exploring whether the military member will voluntarily agree to certain terms, but these agreements would lack the enforceability of divorce decrees in federal matters.
This is why working with an experienced Dallas divorce attorney who understands military benefits is essential. Experienced representation helps both military members and their spouses develop realistic settlement strategies based on what courts can actually enforce.
Strategic Insights for Military Service Members and Their Spouses
In cases involving military retirement benefits, alternative approaches to settlement negotiations might have included different strategies than what occurred in the M. case. Rather than attempting to restrict the military member’s right to elect disability, a former spouse seeking protection might have negotiated for a higher percentage division of the current retirement pay, explored buyout options, or considered structured payment arrangements during the negotiation process.
For military members, what we’ve learned from this case is that understanding the limits of court authority over federal rights provides important context for settlement discussions. Knowing that reimbursement requirements will not be enforceable helps military members evaluate settlement offers more accurately.
Experienced representation by a great divorce lawyer in Dallas who regularly handles military benefits cases helps both parties develop settlement terms that will actually be enforceable and serve their long-term interests.
How Our Dallas Divorce Law Firm Can Help
At our Dallas divorce law firm, we bring 25+ years of family law experience to cases involving military benefits, asset division, and property settlement agreements. We serve Dallas and the surrounding areas including Irving, Richardson, Garland, Mesquite, DeSoto, Grand Prairie, Lakewood, Highland Park, Cockrell Hill, Lancaster, Seagoville, and Duncanville.
Our approach emphasizes honest assessment over false promises. We help clients understand what settlement strategies will actually be enforceable, what courts can and cannot do, and what realistic outcomes look like. Whether you’re a retired military member concerned about protecting your benefits or a former spouse seeking fair protection in a settlement, we provide strategic guidance based on actual legal principles, not optimistic thinking.
If you are facing divorce in the Dallas area and military benefits are involved, or if you have questions about your rights regarding retirement pay, disability elections, or settlement agreements, we encourage you to schedule a Dallas divorce lawyer consultation with our firm. We can discuss your specific situation, explain your rights under both federal and Texas law, and help you develop a strategy that protects your interests while reflecting realistic legal outcomes.
Don’t navigate military benefits division alone. The M. case demonstrates how critical it is to work with attorneys who understand both military law and Texas family law. Contact our Dallas divorce law firm today to discuss how we can help you achieve a fair resolution.
