¶ 1 Mark W. Beres (Husband) appeals the decision of the family court which concluded that post-dissolution military Temporary Disability Retired List (TDRL) benefits were partially community property, subject to apportionment. For the reasons that follow, we conclude TDRL benefits are the separate property of the disabled spouse. Accordingly, we vacate the order of the family court in part and remand for additional proceedings.
FACTS AND PROCEDURAL BACKGROUND 1
¶ 2 Husband and his former spouse, Lori A. Davies (Wife) were married from October
The Wife is awarded an interest in the United States Air Force Military Retirement arising out of Husband’s service with the United States Air Force, as of November 19, 2002, according to the following formula: The number of months of marriage during which the Husband served in the armed services during the marriage (121 months), divided by the total number of months for which the husband spent in the Armed Forces. The resulting percentage shall then be multiplied by 50% (.50) to determine the Wife’s percentage share of any disposable retirement or retainer pay of the Husband. The Wife’s portion shall not be decreased by any voluntary or involuntary act of the Husband including disability or otherwise.
¶ 3 On August 31, 2006, Husband was relieved from active duty and placed on the TDRL with a thirty percent disability rating. At that time, Husband had accumulated a total of fifteen years and three months (183 months) of active duty service. Husband began receiving TDRL pay computed in accordance with 10 U.S.C. § 1401 (2006). 2 Husband has paid a portion of his TDRL pay to Wife since he began receiving payments. It is not clear from the record when Husband discontinued making such payments or the total amount he paid to Wife. Husband later applied for and received a Veterans Administration disability rating of forty percent. 3
¶ 4 Both parties subsequently raised issues concerning Wife’s interest, if any, in the TDRL benefits. Husband maintained Wife had no interest in his TDRL benefits because he was ineligible for retirement for longevity, he was not retired and his status on TDRL was temporary. Wife believed she was entitled to a percentage of the TDRL benefits based on the fixed formula in the Decree. The family court appointed a special master who issued a report. In the report, the special master explained that whether Wife had any interest in Husband’s TDRL benefits depended on the court’s interpretation of Arizona case law and the Decree. Based on his analysis, the special master recommended the court find Husband’s TDRL benefits partially apportionable. He calculated Wife’s interest to be $721 per month. 4
¶ 5 Husband objected to the special master’s report. The family court overruled Husband’s objections and adopted the findings and conclusions in the special master’s report. In August 2008, the court ordered Husband to pay Wife $721 per month from his TDRL pay, and made the award retroactive to April 1, 2008, leaving $3605 in arrears. Husband timely appealed. We have jurisdiction pursuant to Arizona Revised Statutes (A.R.S.) sections 12-120.21.A.1 and -2101.B (2003).
DISCUSSION
¶ 6 Husband challenges numerous aspects of the special master’s report. His challenges center on one issue: whether any part of Husband’s TDRL benefits are community property and thus apportionable to Wife. We review the family court’s characterization of property
de novo
and the apportionment of community property for an abuse of discretion.
In re Marriage of Pownall,
¶ 7 To fully explain the issue presented, it is necessary to discuss the history of the law regarding military retirement benefits. In 1977, the Arizona Supreme Court ruled that military retirement benefits could be treated as community property to the extent attributable to community efforts.
Van Loan v. Van Loan,
¶ 8 In response to
McCarty,
Congress enacted the Uniformed Services Former Spouses’ Protection Act, 10 U.S.C. § 1408 (2006) (USFSPA), which became effective February 1, 1983.
Beltran v. Razo,
[T]he total monthly retired pay to which a member is entitled less amounts which
in the ease of a member entitled to retired pay under chapter 61 of this title, are equal to the amount of retired pay of the member under that chapter computed using the percentage of the member’s disability on the date when the member was retired (or the date on which the member’s name was placed on the temporary disability retired list).
10 U.S.C. § 1408(a)(4)(C). Chapter 61 of Title 10 addresses retirement or separation from the military for a physical disability. Id. at §§ 1201 to -1222 (2006 & Supp.2008).
¶ 9 If a member’s disability is indeterminable as to its permanent and stable nature, the member of the armed forces may be placed on the TDRL for a maximum of five years. Id. at §§ 1202,1210(b), (h). After five years, the member either returns to active duty, permanently retires for longevity if he has reached twenty years of service, or is placed on the permanent disability retired list (PDRL). Id. at § 1210(b); see also 10 U.S.C. § 8911 (2006) (a member of the Air Force generally receives retired pay after twenty years of service).
¶ 10 While on the TDRL, a member receives TDRL pay
5
pursuant to one of two alternative formulas listed as “Formula No. 2” in 10 U.S.C. § 1401(a).
Id.
at § 1202. Under the first formula, the member receives 2.5% “of his monthly basic pay for each year of service.”
Luna v. Luna,
¶ 11 In this ease, Husband was receiving $2862 per month in TDRL pay. This was calculated using the second formula consisting of fifty percent of Husband’s 2006 basic pay plus a cost of living adjustment (COLA). TDRL pay resulting from application of the second formula is expressly excluded from the definition of disposable retired pay because such pay is computed using the percentage of a member’s disability.
Id.
at § 1408(a)(4)(C). Additionally, the Decree ex
pressly
¶ 12 This conclusion, however, does not end our inquiry. TDRL benefits may also be calculated under the first formula.
¶ 13 As previously stated, in Arizona, military retirement benefits are generally treated as community property to the extent attributed to community efforts.
Edsall v. Superior Court,
¶ 14 Prior to enactment of the USPSPA, Arizona issued a number of decisions concerning retirement and disability benefits. In
Flowers v. Flowers,
several types of “disability payments” were identified and categorized, including “semi-retirement disability” and “pure disability.”
6
¶ 15 In
Luna v. Luna,
we also addressed issues concerning disability retired pay.
¶ 16 In the present case, the special master’s report incorporates the principles of Flowers and Luna. 7 The special master recommended to the extent Husband’s TDRL benefits could be calculated by use of credited service (under the first formula), the benefits constituted onerous title and were apportionable. 8 Under the first formula, Husband’s TDRL benefits would have been $2182 per month. 9 Pursuant to the fixed formula in the Decree, Wife’s percentage interest in Husband’s military retirement pay is calculated to be 33.06%. 10 Multiplying $2182 by 33.06% yields $721 in monthly benefits, the amount the court awarded to Wife.
¶ 17 Despite the fact that Husband’s TDRL benefits could have been calculated under the first formula, we find
Lima
and the
Floivers
concurring opinion inapplicable due to the temporary nature of Husband’s benefits.
11
See Luna,
¶ 18 Our conclusion is further supported by the similarities between TDRL benefits and workers’ compensation as discussed by
Amicus Curiae,
Uniformed Services Former Spouses Protection Act Liberation Support Group, LLC.
See Rickman v. Rickman,
¶ 19 Further, Husband is not depriving Wife of any benefit she would otherwise be entitled to. Husband would not be entitled to any benefits at this point but for his disability because he has not completed twenty years of service. See 10 U.S.C. § 8911 (setting forth the twenty year service requirement for retirement). Furthermore, the portion of the Decree which states “[t]he Wife’s portion shall not be decreased by any voluntary or involuntary act of the Husband including disability or otherwise” refers only to Husband’s retirement pay and not any potential disability pay for which Husband was subsequently eligible.
¶ 20 Moreover, we distinguish TDRL benefits from PDRL benefits, which a member may also receive without achieving the longevity requirement. PDRL benefits are more analogous to actual retirement benefits. 10 U.S.C. § 1201. In a situation concerning permanent disability, a member is declared permanently disabled and receives benefits when he or she will no longer be active in the military.
Id.
With TDRL benefits, there has been no determination whether the disability is of a “permanent nature and stable” and thus whether the member will subsequently be able to return to the military and acquire more years of service toward his total retirement benefits. 10 U.S.C. § 1202;
see Dambrava v. Office of Personnel Mgmt.,
¶21 Wife argues Husband’s TDRL benefits are akin to the semi-retirement payments discussed in the
Flowers
concurrence, because years of service and basic pay are used in determining Husband’s monthly benefits. However, the concurrence did not address TDRL benefits.
Flowers,
¶ 22 Wife also argues
Villasenor v. Villase-nor
provides guidance in this case. In
Vil-lasenor,
the court addressed a civil service disability retirement annuity.
¶23 TDRL benefits are distinguishable from the disability retirement annuity at issue in
Villasenor. Id.
at 478,
¶24 Athough the nature of post-dissolution TDRL benefits presents an issue of first impression in A'izona, courts in two other states have recently published opinions on this issue. In
In re Marriage of Williamson,
the Colorado Court of Appeals held post-dissolution TDRL benefits are disability benefits and are not divisible as marital property.
¶25 Similarly, in
Thomas v. Piorkowski,
husband and wife were divorced in 2004 and, pursuant to the dissolution decree, wife was entitled to receive fifty percent of husband’s disposable retired pay resulting from husband’s service in the military.
¶ 26 Athough neither
Williamson
nor
Thomas
addresses the first formula available to calculate TDRL benefits, we find the cases persuasive. Both cases concluded the USFSPA, 10 U.S.C. § 1408(a)(4)(C), pre
vented
¶ 27 Husband also argues he should be refunded the amount of TDRL benefits he has paid to Wife. Wife contends this argument is waived. According to the record, the issue was raised, but not addressed.
See Payne v. Payne,
¶ 28 This argument also presents issues necessitating factual determinations including, but not limited to, the amount Husband paid Wife, when such payments were made and whether such payments could be considered a gift. Accordingly, we remand this issue to the family court to determine whether Husband is entitled to a refund for payments he made to Wife.
Attorney fees
¶29 Wife requests attorney fees on appeal pursuant to A.R.S. § 12-341.01.C (2003) contending Husband’s appeal is frivolous.
See Cordova v. Parrett,
¶30 Wife also requests attorney fees for Husband’s failure to follow the rules for filing an appeal.
See Jhagroo v. City of Phoenix Municipal Court,
CONCLUSION
¶ 31 For the foregoing reasons, we find Husband’s TDRL benefits are his sole and separate property not subject to apportionment. Accordingly, we vacate the portion of the family court’s order awarding Wife an interest in Husband’s TDRL benefits and remand for further proceedings consistent with this opinion.
Notes
. We disregard Husband's statement of facts because he fails to cite to the record as required by Arizona Rule of Civil Appellate Procedure 13(a)(4).
State Farm Mut. Auto. Ins. Co. v. Ar-rington,
. Husband was placed on the TDRL and began receiving "retired pay” as calculated under 10 U.S.C. § 1401. For purposes of this opinion and for clarity, we refer to the "retired pay” Husband received while on the TDRL as either "TDRL pay” or "TDRL benefits.”
. This permits Husband to waive an amount of military retired pay and receive veterans disability benefits instead, in the amount waived, when he retires.
Mansell v. Mansell,
. The explanation regarding how this amount was calculated is addressed in our discussion. Infra ¶ 16.
. This calculation includes retainer pay. 10 U.S.C. § 1408(a)(7).
.
Flowers
concerned United States Civil Service disability retirement benefits.
. Although the special master did not cite Luna as a source considered, his report parallels the logic and reasoning in that case.
. In this decision, we are dealing solely with TDRL benefits. We do not decide whether the special master's calculations would be applicable in the event Husband is removed from the TDRL and placed on the PDRL.
. This is calculated as follows: 15.25 (years of service) x 2.5% = 38.125%. 38.125 x basic pay (assumed to be $5724: $5596 increased by COLA) = $2182. Under the second formula, Husband's TDRL benefits are $2862 per month. See supra ¶ 11.
. This is calculated as follows: 121 (months of service during marriage) / 183 (total months of service) = .6612 x 50% = 33.06%.
. As previously mentioned, these cases also predate the enactment of the USFSPA.
. We cite to the current versions of the applicable statutes as no revisions material to this opinion have since occurred.
. Because we vacate the award of TDRL benefits to Wife, we need not address Husband's remaining arguments concerning additional errors in the special master's report, the calculation of Wife's benefits or the special master's alleged partiality.
