What's the best way to separate from the military due to having severe financial issues?

AR 135–178, Section 6-2. That is the section for hardship. HOWEVER, you need to read that section carefully. If your situation does not meet the criteria, then the hardship request will not be granted.

In my 6 years in the Army, i have run into 3 individuals who have applied for a financial hardship discharge, and so far, none have been approved. Reason being is that the civilian sector cannot afford the benefits the Military can. Even though you say you have a good paying job outside the military, you haven't been discharged yet and you will receive a general under honorable discharge which may affect your employment opportunities.

Don't get your hopes up or live above your means. I was a married PV2 on a single income in a similar situation and made it work because i budgeted my money better.

Ch6 AR635-200. Go see your chain of command.

Is this a temporary problem or a forever problem? Have you been to ACS to get financial management assistance? Is your wife disabled? If so, Are you registered with AFAP for respite Care? Enrolled in EFMP?

What gets fixed by separating? How will you earn a living? Insurance?

What does your employment opportunities look like in the civilian world ?

As stated below you would need to submit a request in accordance to AR 135–178, Section 6-2. Just take note that it directly mentions financial issues and says altered income isn't enough by itself. This puts it on you to clearly demonstrate and prove your wife's dependency on you. I would just warn caution because this will put you directly under the white hot light of scrutiny of the command. Alot of people will be up in your Kool-Aid.

We have one of the highest unemployment rates in the last 40 years right now! Do you really think you'd be better outside the Military right now?
TIPS
-Get into base housing if you can, not rent, electricity and close to work..
-See Army Relief Fund
-Have you tried reducing your APR on your loans? If the loan was there before you joined the military they legally have to reduce it to 4%. Go see base legal for help.
-Look into a dept. consolidation bankruptcy as a last resort (may effect a secret clearance down the road though).

Don’t do it. If your going to go through a hardship and least your going through it with people who would lay their life down for you. The financial troubles you are going through can be helped with through your chain of command. It’s my prayer that you would pray and seek God’s guidance through this time. You can over come it. You need to have the same attitude as a soldier to adapt and overcome your enemy (money) until you conquer it. God speed.

MA2 Ramirez

Why would you not simply request a transfer to the USAR and instead choose to give up a 2d funding stream which only requires a 2 day p/month investment of time instead of simply breaking your contract? As a Company commander, I had a similar situation. A solder (E4/SPC good troop and who never went AWOL) suddenly was AWOL a lot. When my FSG brought him in for an initial Article 15, I asked him why he went AWOL. He chose NOT to disclose a reason. SO, I simply restricted him to barracks and extra duty. A week later, he went AWOL again. The second time he came before me and I asked, I didn't take 'no reason' as an answer. He told me his Spouse had left him and was threatening to divorce him if he didn't separate. I asked him point blank if there was anything I could do - his response" "No" and that he'd continue to go AWOL. I spoke with my FSG and my BNCDR and I reduced him to E3 but suspended it and attempted to coerce this soldier to reconsider. The following weekend, he went AWOL again. When he was before me the 3d time, I executed the suspension and reduced him to E2 and told him I would initiate Chapter paperwork but I would not let him out with anything he had earned. He went AWOL a 4th time, I reduced him to E1 and by that time, his Chapter and General Discharge had been approved. However, when I reduced him to E1 and told him he would be chaptered out by Thanksgiving '87 he thanked me. Perhaps I would do it differently today - older is sometimes wiser - but in the end, he got what he wanted - OUT and I got what I wanted - he left as he had entered - E1. There is similar story about a soldier who wanted out and took the 'AWOL' route to coincide with this one...but I'll save that one for later.

While I recognize the world of a soldier has changed a great deal since my service in the early 70s, one thing that hasn't changed is the financial aspects of service early on. I had a wife and 2 kids living in Iowa when I was drafted and to make ends meet my wife and kids had to move in with her parents in Wisconsin. She took a full time job. Between her job and mine in the military, we made things work by budgeting very tightly. The best thing that happened to me at that time was getting promoted. As a company clerk, I never saw a separation because of financial issues. Now the economy is not real good and the benefits as a civilian are not nearly as good as the military. Our family copay with company provided insurance is $6,000. A guaranteed job today may not, in fact, be guaranteed as the economy suffers at a level of the Great Depression. I'm not sure what "my wife is extremely dependent" means exactly. My decision was to ride it out, put in my time, work hard for the next promotion and leave when my term was up. In the end, the decision is yours and only yours to make. Make sure you examine all the factors to assure that now is the right time for this. Best of luck to you

You need to evaluate the cause of your financial issues, then work on correcting those issues or behaviors. I recommend that you finish your commitment, because you will be surprised at the accomplishment and confidence you will feel if you make it through this and realize your ability to make it through the tough times. Trust me, it is coming though the fire with a few burns and some soot on your face, but coming out of it successfully that will build strength in character and your marital relationship. Is your wife not able to work? I pray you do not just seek and pursue the easy way out, some time down the road you will not be happy with yourself or your decision, but that depends on your character.