2025 Rules and Strategies –
Thrift Savings Plans (TSP) represent one of the most valuable—and most misunderstood—assets in military divorces. California’s 2025 guidelines for dividing these federal retirement accounts require specific procedures that differ significantly from civilian 401(k) plans. Whether you’ve served 5 years or 25, understanding how to properly handle your TSP could protect tens of thousands in retirement savings.
How California Treats TSP Accounts
TSP division follows different rules than other retirement assets:
- Federal law governs: State courts must follow the TSP’s unique requirements
- Different forms required: Standard QDROs won’t work for TSP division
- Strict timing rules: Processing takes longer than civilian accounts
- Tax implications: Special considerations for Roth TSPs
The 4-Step Division Process
- Valuation: Determine the marital portion of the account
- Court order: Obtain a TSP-specific retirement benefits court order (RBCO)
- TSP processing: Allow 60-90 days for federal processing
- Distribution: Funds transfer directly to the recipient’s IRA or TSP account
2025 Changes Affecting TSP Division
Recent updates impact how California courts handle these accounts:
- New RBCO forms specific to the Blended Retirement System
- Updated valuation methods for those who switched retirement plans
- Clarified rules about loan balances during division
- Modified procedures for reserve component members
3 Costly Mistakes We See Repeatedly
Through our military divorce practice, we’ve prevented these errors:
- Using standard QDRO forms that the TSP will reject
- Failing to account for contributions made after separation
- Missing tax implications of different distribution options
Why TSP Division Requires Special Expertise
We’ve successfully:
- Protected a Marine’s combat zone contributions from improper division
- Secured proper valuation of a Navy officer’s blended retirement TSP
- Prevented tax penalties for an Army sergeant’s ex-spouse during transfer
Our military financial division team provides:
- Precise RBCO drafting that meets TSP requirements
- Accurate valuation of complex military retirement benefits
- Coordination with DFAS and TSP administrators
- Tax-advantaged distribution strategies
Don’t gamble with your military retirement. Consult our TSP division specialists today. One mistake could cost you years of savings. The TSP follows its own rules—knowledge of California law alone isn’t enough.
