@macuser_22
You are still missing a key fact. The payer for military pensions called DFAS does not split the accounts or issue separate 1099‘s if the spouses were not married for more than 10 years, even if there is a QDRO in place. The QDRO is a matter of state law, and is satisfied by specific language in the divorce judgment or by other documentation under state law. But as we know from other contexts, state law is not binding on the federal government, and if DFAS won’t issue separate 1099s, there is nothing the taxpayer can do to force them to do so. But the fact the DFAS does not issue separate 1099s does not change the taxability of the income if the divorce judgment specifies (using the correct legal forms for the particular state in question) that the retirement income should be split.
Put more simply, DFAS refuses to follow the rules that IRAs and pensions must follow, but that does not change the tax position of the pension holder or the ex-spouse.
