WHAT HAPPENS TO MY TSP IF I GET DIVORCED IN VIRGINIA?

If are getting divorced and you have a Thrift Savings Plan (TSP), this asset is likely one of your chief concerns. The short answer is it will be divided amongst your other marital assets, unless your spouse agrees to waive their marital share. Let’s discuss further below.

Marital assets are any assets that were acquired during a marriage that either both parties contributed to, or one spouse acquired for the benefit of both spouses. Thrift Savings Plans are comparable to a civilian 401(k), which although one spouse contributes to as a result of their employment, is ultimately for the benefit of both spouses, as it would contribute towards their retirement.

Thrift Savings Plans are divided based upon the length of the time the parties were married and the federally employed spouse was employed with the federal government and contributed to the account. If you are curious what the marital share would look like, you may attempt a rough calculation by using the number of months you were employed and contributed during your marriage and the number of months you were employed with the federal government. The length of time calculated is referred to as the marital share.

You will not have to divide one hundred percent of your Thrift Savings Plan unless you were married without being separated for the entire length of your federal employment and contribution to the TSP. If you separated and delayed formalizing your divorce, don’t worry! Your date of separation is the cut off for dividing your TSP.

Your spouse could voluntarily choose to waive their marital share of your Thrift Savings Plan, however, this rarely occurs. Should you desire your spouse to waive and they do not agree, going to trial to fight to keep your entire TSP is not likely to be successful; Judges will choose to divide the marital share of the account virtually every time.

If you are not yet retired, a Court order will be filed specifying the details of the division. When the order is formally entered with the Court, it will be sent to the Office of Personnel Management. It will wait there until you retire, then the marital portion of your Thrift Savings Plan will be divided accordingly.

Schedule A Consultation

If you are initiating your divorce and concerned about your Thrift Savings Plan, or if you are completing your divorce and need assistance with the Order to divide the marital share of your TSP, contact us today at 571-248-2210 or info@mhopkinslaw.com to schedule a consultation. Michelle Hopkins and her legal team are ready and waiting to help you.