Your military career helps you build two valuable assets: a pension and a Thrift Savings Plan (TSP). However, both can be subject to property division during a Georgia divorce. Knowing how the Defense Finance and Accounting Service (DFAS) and the TSP handle these divisions can help you protect what you have earned.
How DFAS divides your military pension after divorce
Georgia treats pensions as marital property and divides them fairly, though not always 50/50. DFAS can accept a fixed dollar amount, a percentage or a formula/hypothetical award as long as it is specific and DFAS-compliant.
DFAS may reject orders with vague wording. If DFAS rejects the order, you will pay your ex-spouse yourself each month and pay extra legal fees to fix it.
The Frozen Benefit Rule applies if your divorce finalizes before you retire. Under this rule, the court calculates your ex-spouse’s share using your pay grade and years of service on the date of the order. Any promotions you earn after the divorce stay yours.
If your divorce was after December 23, 2016, your ex-spouse’s share is locked in at your rank and years of service at the time of divorce. Although the rank is “frozen,” your ex-spouse is still entitled to Cost-of-Living Adjustments (COLAs) that happened between the divorce date and the service member’s actual retirement.
The 10/10 Rule controls how payments reach your ex-spouse. DFAS will only pay your ex-spouse directly when 10 years of marriage overlaps with 10 years of service. Without that overlap, you need to pay your ex-spouse yourself each month.
How the TSP record keeper divides your TSP
The TSP follows separate rules and processes. A dedicated record keeper handles the division, not DFAS. Key points to remember:
- The TSP charges a processing fee, divided proportionally between you and your ex-spouse unless the court order says otherwise.
- The TSP allows lump-sum payments only, not installments.
- The court order must clearly identify the participant, payee, and TSP account.
- The court order must explicitly state whether investment earnings are included.
TSP may restrict transactions while reviewing a qualifying court order. TSP will lift restrictions if the order is rejected or processing is cancelled.
Your pension and TSP represent years of military service. Working to have your legal documents drafted clearly and correctly the first time can help protect your future income.