I've currently been active duty military for 4 yrs 5 months, and married for 3 yrs 6 months, and we are going through a divorce. Is my soon to be ex-wife entitled to a portion of my retirement? I don't even know if I'm going to stay in to complete the required minimum of 20yrs for retirement. If I do retire how do I figure out what she's going to get if anything? I'm currently an E-5 but if I retire I would be retiring at a higher pay grade. How does this all come into play?

Mostly it depends on the settlement you receive. Lets say the marriage lasts for 5 years.. and you continue your career and stay for 25 years. She may be entitled to 20% based on 25 / 5. That being said her contribution may also be lowered as a benefit because she wasn't there for the entire duration. Its just a target figure you may have to look at for settlement. If there is any question at all you could always calculate the benefit based on your current grade and then come up with a figure for a cash settlement. Again this is all up to the courts etc.

How does that work though, my obligated time of service is up in August of 2010. I might not even retire, how can we be fighting over something that isn't even available or even a possibility at the current time?

That is how it works, you fight ( or could fight) over any and everything she and you want to. She will ask for this or that, you say you want that and that. If you can't work it out in discussion, then the court decides.

Remember it does not have to be "right" it will seldon seem "fair" but at the end of the day it will be the settlement the court orders.

Has she even asked for that yet ?

She said that if her lawyer advises that she's entitled to it than she intends to seek it. What happens if I don't stay in and complete a retirement.

That needs to be spelled out in the divorce, if you stay in, this and that, if you get out, then what happens. Most likely she will try and just put a dollar figure to what 1/2 of 5 years retirement pay is worth and ask for that much cash now. But that is just a guess