A spouse can be awarded up to 50% of the marital share of the TSP in a divorce. The marital share is based on the amount of time you were earning towards the pension while married. If you’re both willing to work together and negotiate, there are many ways to handle property division.
Also to know is, how is TSP split in divorce?
Your current or former spouse, or your dependents, could be awarded a portion of your TSP account if a valid Retirement Benefits Court Order (RBCO) to divide your account is issued. The RBCO can be issued at any time in the divorce, annulment, and separation proceedings.
Also know, can my wife take my TSP?
And, for TSP purposes, a spouse includes a separated spouse as well. So, if you want to take a distribution of your funds inside of the TSP, the law says that your spouse needs to know about it – and may even need to agree that it’s OK since a portion of those funds also belong to him or her.
Is my ex wife entitled to my FERS retirement?
Everything is Negotiable
If the ex-spouse does get entitlement to either a portion of the federal worker’s pension, or any part of the survivor benefits, then they are also eligible for FEHB coverage under the Spouse Equity Law. (FEDVIP coverage cannot be kept by a non-fed after their divorce from a federal employee.)
How do I protect my pension in a divorce?
There are two basic ways to treat a pension in a divorce: either both spouses can agree to share the monthly annuity payments (or lump-sum payment) during retirement, or they can divide the present value of the pension at the time of the divorce.
How does TSP know if your married?
If you are a married CSRS participant and you are making a partial withdrawal, the TSP must notify your spouse of your withdrawal election, regardless of your account balance or the amount of your withdrawal. The TSP determines marital status by how that status is listed on the participant’s federal income tax form.
Is TSP better than 401k?
While they may not have as many funds to choose from, TSP participants do have one big advantage over most 401(k) investors: lower fees. The total expense ratio, which covers both investment and administrative fees, is 0.055% for individual TSP funds.