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The law on transfering SBP coverage when a former spouse died was ambiguous, and DFAS had been taking the hard line approach that SBP coverage died with the former spouse, and all of the accumulated premium payments were simply lost.

Congress has stepped in with the 2016 National Defense Authorization Act, and clarified that when a former spouse dies, the retiree can transfer SBP coverage to a new spouse. See the article on SBP Beneficiaries in the Military Divorce Guide for more information and links.

Have a military divorce case? Deployed? Black & Graham can help.

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