${site.data.firmName}${SEMFirmNameAlt}
Call for a consultation: 877-851-1934 | 704-323-7833

Dealing with a Thrift Savings Plan during a divorce

North Carolina residents who work or have worked for the federal government and whose marriages are ending may find that their divorce can become complex when it comes to a federal Thrift Savings Plan. While there is no federal law that requires a worker to share his or her TSP account balance with a former spouse, a court could potentially award a certain portion.

Before a portion of the TSP can be awarded to the former spouse, it requires a Retirement Benefits Court Order. The RBCO can be a court decree of divorce, a legal separation or an annulment. In some cases, a Qualified Domestic Relations Order could potentially qualify as a RBCO. The court may order the TSP account to be frozen, meaning no withdrawals or loans can be taken from that account, until the divorce has been finalized.

Because dividing up federal benefits in a divorce can be difficult, there is a booklet available for the TSP called Court Orders and Powers of Attorney. This 31-page booklet has pertinent information when it comes to drafting documents that meet court standards.

Some individuals who have been preparing for retirement may suddenly find that their financial plans are interrupted due to the end of their marriage. If a person has multiple retirement accounts and benefits from long-term employment, dividing these assets up can be difficult and, in many cases, confusing. People who are in this position may want to have the assistance of their family law attorney when attempting to negotiate an appropriate settlement agreement.

No Comments

Leave a comment
Comment Information

Contact Our Law Firm Today

You deserve to have a skilled legal advocate on your side who will protect your best interests. We will do just that. To schedule a consultation, please call our office in Charlotte at 704-323-7833 or 877-851-1934, or contact us online.

Plumides, Romano, Johnson & Cacheris, PC
301 South McDowell Street, Suite 130
Charlotte, NC 28204

Toll Free: 877-851-1934
Phone: 704-323-7833
Fax: 704-358-0536
Charlotte Law Office Map

Schedule A Consultation With An Experienced Attorney Today

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy