FAA4.H Unearned Income (UNIN UNIC) : 03 Types of Unearned Income - Overview : DD Legal Settlements : .08 Uniform Services Former Spouse Protection Act
Uniform Services Former Spouse Protection Act
The Uniform Services Former Spouse Protection Act (USFPA) payments are countable and considered income of the participant court ordered to receive the payment. (Public Law 97‑252)
 
The USFPA outlines that up to 50% of a participant's former spouse’s military retirement or pension funds may be diverted by court order for alimony, child support or property settlement.
 
Key the Uniform Services Former Spouse Protection Act payments in the INC TYPE field on UNIC as OT.
 
When the participant is the former spouse and military retirement, or pension funds are diverted by court order for the following:
 
●For Child Support – see Child Support Expense
●For Alimony – not an allowable expense
●For Property Settlement – not an allowable expense