How to Garnish Servicemembers’ Salaries: Legal Guidelines

Service members incur different types of debt just like civilians. Select types of debt can be automatically deducted from a military member’s pay, but only select debt that falls under federal law’s rules and regulations. The proper protocol should always be followed to safeguard one’s military pay.

While military members may be liable to pay spousal or child support, one can’t simply garnish retired military members’ pay or VA disability payments. There are rules to be followed to safeguard a military member’s well-being. Below we’ll discuss how to garnish a service member or veteran’s compensation.

What is Military Pay Garnishment?

Garnishment is a legal process of collecting a person’s debt from their pay or salary. In the Armed Forces, garnishing may involve military retired pay or active income. In select instances, a person’s VA disability payments may be reduced to fulfill alimony or child support responsibilities.

A court order is required to garnish military personnel’s pay. The Defense Finance and Accounting Service (DFAS) is in charge of monitoring the garnishment of service members’ pay. The DFAS garnishment law directorate ensures the military member has sufficient funds for personal needs while the correct amount is withheld.

Federal Law Rules on Military Garnishment 

5 CFR § 581.402 stipulates that the most money that can be garnished from one’s pay relies on one’s income. Here are general guidelines to provide some guidance:

• Half their income or 50% if that person is obligated to allocate half the support to dependents not indicated in the order
• 55% of their total pay if that person is compelled to shoulder more than 50% of the support to dependents not stipulated in the order but with a support arrearage
• 60% of their total pay if that person isn’t required to pay more than 50% of the support to dependents not stipulated in the order
• 65% of their income if that person isn’t to pay more than 50% of the support to dependents not specified in the order but has a support arrearage

The Department of Defense mandated a certified court order, which shouldn’t be more than two years old when DFAS got the request to garnish child support arrears. Evidence should be provided that the military member doesn’t voluntarily make payments, and garnishment is needed.

Who is Entitled to Military Garnishment?

One cannot simply garnish military pay for health insurance premiums or normal retirement contributions. Proper protocol must be followed per the federal law.

Garnishment documents can be submitted via fax (877-622-5930) or mail. The address for this process is:

DFAS Garnishment Law Directorate
P.O. Box 998002
Cleveland OH 44199-8002

Spousal or Child Support

DFAS will only permit garnishment when a valid court order specifies that one’s employer is to withhold income from that person for legal obligations to be fulfilled. An experienced family law attorney or a state agency can help spouses needing DFAS Child Support garnishment send their request.

Moreover, a court order is needed to stop the arrangement mandated by a child support order. An authoritative entity must provide a termination order, or the original order should specify an expiration date. Like in civilian situations, child support has limitations for military members.

Commercial Debt and Limits

Technically, commercial debts like life insurance premiums or retirement contributions can’t be garnished from one’s salary like child support. However, your pay may still be affected.

Commercial creditors can facilitate an involuntary allotment to the DFAS. Military community members with outstanding debt might be affected, as would civilians who don’t pay on time. Companies that take service members to court and win a civil judgment can have the DFAS arrange an involuntary payment to settle the debt.

The suing party must submit DD Form 2653 to process the collection, and the DFAS won’t be directly collecting payments. The money is to be sent to the company or a court.

Who Can Request Garnishment of Military Pay?

The Uniformed Services Former Spouses’ Protection Act stipulates that those who are owed property, spousal, or child support can request military garnishment. While commercial debt cannot be legally garnished, service members can arrange a military involuntary allotment process to fulfill their debt obligations.

What Are the Limits on Military Pay Garnishment?

While the DFAS is in charge of the garnishment of a military member’s pay, they also ensure that they would still have enough money to meet their needs. The same principle applies to veterans who receive military retired pay. The DFAS ensures one’s military retirement pay isn’t depleted to the point they can’t pay for daily expenses.

The Significance of DD Form 2653

Also known as an involuntary allotment application, DD Form 2653 isn’t the only requirement for the government to be involved in commercial debt collection. The company or creditor must prove that the request is applicable and valid.

There should be evidence that the debt wasn’t discharged due to the service member declaring bankruptcy. That member shouldn’t have sought protection under U.S. bankruptcy law, too.

If a service member overpays their debt, DD Form 2653 requires a refund 30 days after the overpayment is discovered. If creditors don’t refund service members’ money, future requests may be denied.

The SCRA Impact on Military Retired Pay Garnishment

Regardless of the debt, garnishing VA disability payments or other compensation can still materially affect a service member’s finances. Fortunately, the Servicemembers Civil Relief Act (SCRA) can help alleviate the garnishment process’s impact.

The SCRA stipulates that all pre-service debt interest rates should be lowered to six percent. Some companies even lower this rate to four percent. While this protection doesn’t cancel out the debt, it does make it more manageable.

Conclusion

Military garnishment allows service members to pay child support and other debts automatically. However, the proper protocol must be followed to avoid complications. Fortunately, legislation like the SCRA makes managing their debts easier for active-duty members.

Proving one’s military status is vital for SCRA protections, and this is where SCRACVS can be of service. Click here to sign up at SCRAVS and verify the active duty status.

FAQs

Can the US garnish foreign wages?

No, the US only authorized garnishment requests issued by an American company. In this case, it only applies to American service members. Other countries have rules on garnishment that must be respected.

What is the most they can garnish from your paycheck?

The maximum amount that can be removed from your paycheck is 65%. The exact figure varies depending on your pay grade. Certain conditions must be met for this percentage to be allowed for garnishing.

What is the most the government can garnish your wages?

The maximum the government can deduct from your military salary is 65%. However, certain conditions must be met for this garnishment to be effective.

Can wages be garnished in California?

Yes, military wages in California can be garnished. The proper protocol must be followed for this process to take place. Moreover, a portion of the salary must be left for that person to meet their needs.

Can retired military pay be garnished differently than active duty pay?

Yes. Technically, one’s retired pay can’t be subject to garnishment for commercial debt. You can arrange automatic transfer, but the DFAS doesn’t permit this.

Can garnishment affect a servicemember’s military career?

Not necessarily, but it can materially affect one’s finances. Making big moves might be challenging if you have outstanding debt restricting your cash flow.