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Combat Related Special Compensation (CRSC) in a Military Divorce

Milspouse Transition Conversations

Combat-Related Special Compensation (CRSC) is a tax-free benefit for veterans with combat-related disabilities, but it’s also one of the trickiest topics in a military divorce. 

Unlike regular retirement pay, CRSC can’t be divided as marital property, leaving some military spouses blindsided during the process. If you’ve ever found yourself wondering, “Wait, why doesn’t this count as retirement pay?” or “How does this affect my financial future?”—you are NOT alone.

This episode is real talk from military spouses who’ve been there, sharing what they wish they’d known before starting the military divorce process. Whether you’re in the middle of a divorce, considering it, or just want to be informed, this conversation is for you.

Disclaimer: This episode is NOT legal advice. We’re military spouses supporting other military spouses, sharing personal experiences to help you make informed decisions. Always consult a qualified attorney for legal guidance.

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Meet our Guests

Liz Davis

Liz Davis describes herself as your accountability partner. A financial planner who specializes in mlitary families, divorce, and widowhood, she’s go experience in:

  • Full-picture financial planning
  • Life insurance & risk management
  • Military-specific financial planning (married or divorced)
  • Widow financial services
  • Financial education & empowerment for women
  • Cash flow & budgeting planning
  • Asset management
  • Retirement planning
  • Military-specific financial planning (married or divorced)
  • Divorce financial declaration assistance/planning after divorce

Annette Whittenberger

Annette is the divorce advocate at MilSpouse Transition. She brings her experience as a speaker, author, veteran, and military spouse as foundational conversations to provide support, encouragement, and understanding to military spouses facing divorce with big questions.

Annette is also the  CEO + Founder of A Wild Ride Called Life, LLC, in which she shares her story in order to save lives and help others know that they are not alone.

The Conversation Q&A

  • What is Combat Related Specialty Pay?
  • Why is important to understand CRSC when going through a military divorce?
  • What questions should a military spouse ask their lawyer about CRSC during the divorce conversation?
  • One piece of advice for military spouses who are facing this challenging transition?

Learn more about CRSC from the Defense Finance and Accounting Service (DFAS)

Head here for the official and most current information on CRSC.

Questions To Ask Your Lawyer

Here are just a few questions you should be asking and researching about CRSC

  • “How can CRSC impact the division of military retirement pay in my divorce?”
  • “Can CRSC be considered in spousal support (alimony) or child support calculations?”
  • “If my ex-spouse waives retirement pay for CRSC, how does that affect my share of the pension?”
  • “What legal strategies exist to protect my financial stability if CRSC impacts my settlement?”
  • “Are there any recent court cases or state-specific laws that impact how CRSC is handled in divorce?”

Connect with our Guests

Here is how to contact our guest:

Liz Davis on LinkedIn

Annette Whittenberger on LinkedIn

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