Divorcing in Alaska?
Military Pensions, PFD Assets, Oil Industry Benefits — Do You Know What's Marital Property?

Joint Base Elmendorf-Richardson (JBER): Alaska's Military Hub

JBER is one of Alaska's largest employers and a critical military installation combining Air Force and Army operations. For military families, gray divorce involves unique pension division challenges and the critical community property election decision.

JBER military divorce considerations:

• Community property election: Military members stationed in Alaska can elect to have community property rules apply (50/50 split) instead of Alaska's equitable distribution. This is a one-time, irrevocable decision that requires careful financial analysis.
• Military pension division: If you were married 10+ years during military service, you qualify for direct DFAS payments. The marital portion is typically calculated using a time-rule formula.
• 20/20/20 rule: If you were married 20+ years, your spouse served 20+ years, and there's 20+ years overlap, you qualify for lifetime military benefits (TRICARE, commissary, exchange).
• Survivor Benefit Plan (SBP): Critical decision—will you remain the SBP beneficiary? This costs the retiree but provides survivor protection.
• Disability vs. retirement pay: If the service member receives VA disability, it may offset retirement pay, reducing what's available to divide.
• Blended Retirement System vs. High-3: Newer members have TSP matching; older members have traditional pensions. Division strategies differ.

Alaska-specific military issues:

• Alaska COLA: Cost of Living Allowance for Alaska duty—is this considered income for support calculations?
• BAH (Basic Allowance for Housing): Anchorage BAH rates are among the nation's highest ($2,500-3,500/month). How does this affect temporary support during divorce?
• PCS (Permanent Change of Station): If active duty spouse receives orders to leave Alaska, how does this affect custody, support, and property division timing?
• Remote Alaska assignments: Some JBER members deploy to remote Alaska locations with hardship pay. Is this income for support?

Common JBER divorce scenarios:

• Retiring from military at JBER: Couple has been in Alaska 10+ years, now facing retirement and divorce simultaneously. Should non-military spouse stay in Alaska or relocate?
• Post-retirement civilian career: Military retiree now works civilian job in Anchorage (often federal government, oil industry, or Alaska Native corporations). Both pension and current income are at issue.
• Younger second marriages: Service member remarried while stationed at JBER. First marriage may have military benefits (20/20/20), second marriage may not.

Why JBER divorces need specialized planning: The community property election decision alone can change your settlement by tens of thousands of dollars. Most military attorneys don't have the financial expertise to model both scenarios—this is where a CDFA® becomes critical.

Oil & Gas Industry Compensation: Anchorage Corporate Headquarters

Anchorage is home to the corporate headquarters and major operations centers for ConocoPhillips Alaska, Hilcorp Alaska, and numerous other oil & gas companies. Executive compensation and North Slope rotation schedules create unique divorce challenges.

ConocoPhillips Alaska and major oil company compensation:

• North Slope rotations: Many employees work 2 weeks on/2 weeks off rotations on the North Slope with premium pay. Base salary may be $100,000-150,000, but total compensation reaches $200,000+ with rotations, per diem, and bonuses.
• Stock compensation: Restricted Stock Units (RSUs), Performance Share Units (PSUs), and stock options that vest over 3-5 years. What happens to unvested grants post-separation?
• Annual incentive bonuses: Performance bonuses can be 20-50% of base salary, tied to oil production, safety metrics, and company performance.
• Defined benefit pensions: Long-tenured employees may have traditional pensions with early retirement at 55. Division requires a QDRO.
• 401(k) matching: Often 6-10% company match, sometimes including company stock.
• Deferred compensation: Supplemental Executive Retirement Plans (SERPs) for highly compensated employees.
• Per diem and allowances: North Slope per diem can be $100-150/day when on rotation. Is this "income" for support purposes?

Unique oil industry divorce issues:

• Volatile income: Oil prices and production levels affect bonuses and job security. How do you calculate "average income" for support when bonuses fluctuate $30,000-80,000 annually?
• Unvested stock options: If you have stock options that vest 2-4 years after separation, is the marital portion based on a time-rule formula (Hug formula in Alaska)?
• Early retirement packages: Many oil workers retire at 55-60 with enhanced packages. How does early retirement affect pension division?
• Severance negotiations: If employment ended during marriage (layoffs, buyouts), severance may be marital property subject to division.
• Relocation outside Alaska: If the oil industry spouse relocates to Houston, Denver, or internationally for career advancement, how does this affect custody and support?

Common oil industry divorce scenarios:

• Peak earning years: Spouse is 50-60, earning $200,000-300,000+ with stock grants. You're facing "now or never" decision about divorce while income is high.
• Layoff during divorce: Oil price downturns have led to waves of layoffs in Anchorage. Income suddenly drops from $200,000 to $80,000 (new job) or unemployment. How does this affect temporary support?
• Long-term marriage, significant assets: 25-30 year marriage, $2-4 million in retirement accounts, $600,000 home, stock options. Complex division requiring sophisticated analysis.

Anchorage Real Estate: High Prices, Limited Inventory

Anchorage real estate market is characterized by high prices, limited inventory, and significant seasonal fluctuations. The median home price in South Anchorage and Eagle River areas is $400,000-550,000+.

Anchorage real estate divorce considerations:

• Limited inventory: If you sell, finding suitable replacement housing can be challenging, especially in desirable areas like South Anchorage, Rabbit Creek, or Eagle River.
• High prices: Can you afford to buy out your spouse's interest and refinance the mortgage on one income?
• Seasonal market: Best selling season is May-August. Winter sales are difficult and may yield lower prices.
• Military housing market: Areas near JBER (especially Eagle River) have high demand from military buyers. This may support resale values.
• Refinancing challenges: Alaska mortgage rates and lender requirements may make refinancing difficult if your post-divorce income is modest.
• Property taxes: Anchorage has relatively high property taxes (around 1.2-1.5% of assessed value annually). Factor this into affordability analysis.

Sell or keep the house?

• Sell: Split proceeds, both downsize or relocate. Avoids ongoing mortgage burden but requires finding new housing in tight market.
• Buyout: One spouse keeps house, buys out other's equity. Requires refinancing and sufficient income to qualify.
• Co-own temporarily: Delay sale until market improves or until strategic timing. Risky if parties can't cooperate.

Relocation consideration: Many gray divorce clients question whether to stay in Anchorage. Selling Anchorage home at $450,000 could buy similar quality home in Boise, Spokane, or other Lower 48 cities for $350,000-400,000, freeing up equity and reducing ongoing costs.

Anchorage Cost of Living: Extreme Expenses Affecting Post-Divorce Budgets

Anchorage has one of the highest costs of living in the United States. This dramatically impacts spousal support calculations and your ability to maintain financial independence post-divorce.

Anchorage cost of living breakdown:

• Housing: Median rent for 2BR apartment: $1,500-2,000/month. Median home price: $400,000-450,000. Property taxes: $500-700/month on median home.
• Utilities: Winter heating costs (November-March): $300-600/month. Electric: $100-200/month. Water/sewer: $80-120/month.
• Food: Groceries cost 30-50% more than national average. Monthly grocery budget for one person: $400-600.
• Transportation: Vehicles essential (limited public transit). Harsh winters require winter tires, frequent maintenance. Gas prices often $0.50-1.00/gallon above Lower 48.
• Healthcare: Insurance premiums are among nation's highest. Medicare supplement (Medigap) policies can be $300-500/month.
• Overall: A reasonable post-divorce budget in Anchorage for a single person living modestly: $5,000-7,000/month ($60,000-84,000/year).

How extreme costs affect divorce settlements:

• Spousal support calculations: Courts consider Anchorage's high costs when setting support. Your "need" may be $5,000-6,000/month just to cover basics.
• Property division: Keeping illiquid assets (house, retirement accounts) may seem attractive, but can you afford the carrying costs?
• Employment decisions: Taking a $60,000/year job might provide decent lifestyle in Midwest, but leaves you struggling in Anchorage.
• Relocation analysis: Many clients realize they can achieve better quality of life by relocating to Lower 48 city with 30-40% lower costs—even factoring in loss of PFD.

Alaska tax advantages vs. cost of living: Alaska has no state income tax and no statewide sales tax. This saves approximately $6,000-10,000/year for someone earning $80,000-120,000. But does this offset the $15,000-25,000 extra annual cost of living compared to Lower 48? For many gray divorce clients, the math says "relocate."

Permanent Fund Dividend (PFD) in Anchorage Divorces

The Alaska Permanent Fund Dividend provides $1,000-3,200+ annually to each Alaska resident. While modest, it's a factor in Anchorage divorce planning.

PFD divorce considerations:

• Individual benefit: Each spouse receives their own PFD post-divorce (if both remain Alaska residents). This is NOT divided.
• Marital property question: If you accumulated PFD payments in a joint savings account during marriage, are those savings marital property? Courts have split on this.
• Income for support: Some courts consider PFD as income when calculating spousal or child support. This could increase support obligations by $100-300/month.
• Relocation decision: If you leave Alaska, you lose PFD eligibility. For a couple, that's $2,000-6,000+ per year. Factor this into relocation analysis.
• Children's PFD: Minor children receive their own PFD. If held in UTMA/trust accounts, these are typically not divided between parents in divorce.

PFD strategy: For most gray divorce clients, PFD is a nice benefit but not sufficient reason to stay in high-cost Anchorage if relocation makes better financial sense. However, for retirees on fixed income, the $1,500-3,000/year PFD can be meaningful supplemental income.

Employment and Career Considerations for Gray Divorce in Anchorage

Anchorage's economy is driven by oil & gas, military, tourism, healthcare, and government. For 50+ individuals facing divorce, employment options may be limited.

Anchorage job market realities:

• Age discrimination: Finding professional employment at 50-60 can be challenging in Anchorage's smaller job market.
• Industry concentration: If your career was tied to spouse's employer (oil company, military), your options may be limited.
• Seasonal employment: Tourism sector offers seasonal work (May-September) but little year-round opportunity.
• Government jobs: Municipality of Anchorage, State of Alaska, and federal government offer stable employment but often require specific qualifications.
• Healthcare sector: Alaska Native healthcare (ANMC, Southcentral Foundation) and Providence Alaska are major employers.
• Remote work opportunities: Can you work remotely for Lower 48 company while living in Anchorage? This opens significantly more options.

Career planning for gray divorce:

• If you've been out of workforce 10-20 years, re-entry is challenging. Consider retraining or using spousal support period to build skills.
• Part-time or seasonal work may supplement retirement income or spousal support, but won't replace full career income.
• If you relocate to Lower 48, job opportunities may be significantly better in larger metro areas.
• Consider how long you plan to work (to 65? 70?) vs. tapping retirement assets early.