Thursday, March 24, 2011

Dividing Your Husband’s Thrift Savings Plan After a Military Divorce

The Thrift Savings Plan, or TSP, is the military's version of a 401 (k) program, which Congress extended to military members in 2001. If you're going through a military divorce, you might be eligible to receive a portion of your husband's TSP balance.
The TSP is a retirement savings and investment plan that many military members use to supplement military retirement pay. To receive a transfer of funds from your husband's TSP account after your Virginia divorce, you'll need a court order that clearly awards you a portion of the TSP account.

In order to help develop a valid court order during your military divorce, the TSP Legal Processing Unit will provide you and your attorney pertinent information, such as:
  • the member's TSP balance;
  • any existing loan balances; and
  • annual or quarterly TSP statements. 

Starting over after the life-altering event of a military divorce can seem scary at times, especially when you're unsure of your financial future. It helps to know that you might be eligible to receive a portion of your husband's TSP balance, which will provide you with a welcomed financial buffer.

Your divorce attorney can help you navigate the military retirement pay system during your divorce to fight for a settlement that addresses your husband's TSP account, among other possible assets.

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