relative to the definition of disposable military retirement pay and the suspension of alimony obligations.

HB 1263 clarifies that disposable military retirement pay (defined as retirement pay after tax and mandatory deductions) is excluded from gross income calculations for alimony and cannot be divided as marital property in divorce settlements. The bill requires alimony payments sourced from this pay to automatically terminate or suspend when the payor retires, unless federal law or regulations require otherwise. It specifically distinguishes disposable military retirement pay from other military benefits and ensures alimony orders based on this pay follow the same rules as civilian retirement pay. This law takes effect on July 1, 2026, directly affecting divorcing couples where military retirement pay is used to fund alimony.