What Every Divorced Federal Employee Should Know About Splitting Retirement Benefits

Key Takeaways

• A divorce can significantly affect your federal retirement benefits, including pension, TSP, and survivor annuity. Understanding how court orders work in 2025 is essential to protecting your long-term financial security.

• You must proactively ensure that all divorce-related orders are properly filed with OPM or TSP, or else your benefits could be delayed or wrongly distributed.

Your Federal Retirement Isn’t Automatically Protected in Divorce

If you’re a federal employee or retiree who has gone through a divorce, your retirement benefits could be split between you and your former spouse. This doesn’t happen automatically. Instead, a court must issue specific legal documents that dictate the division. In 2025, agencies like the Office of Personnel Management (OPM) and the Thrift Savings Plan (TSP) require carefully worded documents, or else your benefits may not be paid as intended.

Retirement Benefits That Can Be Affected

Federal employees under CSRS or FERS have multiple retirement components that may be subject to division during a divorce:

• Civil Service Retirement System (CSRS) or Federal Employees Retirement System (FERS) annuity

• Survivor annuity benefits

• Thrift Savings Plan (TSP)

• Federal Employees Health Benefits (FEHB) and life insurance (FEGLI)

Each of these is treated differently under divorce law, so it is important to understand what can and cannot be split, and how that process works.

1. Court Orders and Your Basic Annuity

Your FERS or CSRS annuity is often considered marital property and can be divided. However, the division must be ordered by a state court and included in a document known as a Court Order Acceptable for Processing (COAP).

What OPM Requires:

• A COAP must clearly state the percentage or dollar amount of the annuity to be awarded.

• It must be certified by the court.

• It must be received by OPM before the retirement application is processed, or delays are likely.

Payouts and Timing:

• Payments to a former spouse generally begin when the employee retires and begins collecting their own annuity.

• If the court awards a portion of the annuity, that portion will be withheld from your monthly payment.

Be aware that OPM does not divide your retirement benefits unless the order is clear and compliant with their regulations.

2. Survivor Benefits and the Former Spouse

Even if your annuity is divided, that doesn’t automatically entitle your former spouse to survivor benefits. Survivor benefits must be specifically awarded in the divorce decree or property settlement and must be submitted to OPM in the form of a COAP.

Important Notes for 2025:

• You must elect a former spouse survivor annuity at retirement if required by court order. If you don’t, OPM will still honor the court order, but it can create significant delays and confusion.

• The cost of providing a survivor annuity (typically around 10% of your full annuity) is deducted from your retirement payment.

If you remarry, make sure your new survivor election doesn’t conflict with a court-ordered former spouse annuity.

3. Thrift Savings Plan and Retirement Accounts

The Thrift Savings Plan (TSP) can also be divided in divorce. A Retirement Benefits Court Order (RBCO) must be issued to specify how the account should be split.

Key Requirements:

• RBCOs must be received by the TSP before the account is closed.

• The order must specify a fixed dollar amount or percentage of the account to be awarded to the former spouse.

What Happens After the Order:

• The former spouse can receive their share directly into an IRA or other retirement account.

• TSP will freeze the account during processing, which may take several weeks.

In 2025, delays can occur if the RBCO lacks required language, so it is vital to work with an experienced attorney familiar with federal retirement.

4. FEHB and Health Coverage Rules

Divorced spouses are no longer eligible to stay on your Federal Employees Health Benefits (FEHB) plan. Coverage typically ends at midnight on the day the divorce is final.

Options for the Former Spouse:

• They may be eligible for Temporary Continuation of Coverage (TCC) for up to 36 months, but they must pay the full premium plus a 2% administrative fee.

• If they had at least 9 months of marriage during your federal service, they may be eligible for spouse equity coverage under certain conditions.

As the employee or retiree, you cannot keep a former spouse on your FEHB after the divorce, even if you forget to notify your agency. Doing so may lead to overpayments that must be repaid.

5. FEGLI and Life Insurance

The Federal Employees’ Group Life Insurance (FEGLI) policy can also be addressed in divorce decrees. A court may require you to maintain your former spouse as a beneficiary.

What You Should Know:

• You must submit a certified court order and designation of beneficiary form to your employing agency or retirement system.

• The order must clearly state the former spouse is entitled to a specific portion or coverage level.

• FEGLI premiums can increase significantly in retirement, especially after age 65.

If you fail to update or remove your former spouse after the divorce and no court order requires it, they may still receive the benefit by default.

6. Duration of Marriage and Its Impact

Many court decisions about dividing retirement benefits hinge on the length of the marriage. Marriages of 10 years or longer during federal service are more likely to result in a division of annuity or TSP.

In 2025, courts frequently use a pro-rata share formula based on how many years the couple was married while the employee served. For example, if you served 30 years and were married for 15 of those, the court might award half of the benefit from the 15-year portion to the former spouse.

7. Social Security and Government Pensions

For employees under CSRS, Social Security benefits may not apply unless you worked in Social Security-covered employment. But if you qualify for Social Security, a divorced spouse may also qualify for benefits on your record.

Eligibility Rules:

• Must have been married at least 10 years.

• Spouse must be unmarried and age 62 or older.

• Their benefit will not reduce yours.

Social Security operates separately from your federal retirement plan, but the Government Pension Offset (GPO) could reduce spousal benefits if you receive a CSRS pension.

8. Timing Matters More Than You Think

In 2025, delays in submitting COAPs or RBCOs can jeopardize retirement processing or result in denied claims. OPM and TSP do not apply court orders retroactively, which means:

• If a court order is received after retirement payments start, OPM may not be able to apply the order as intended.

• TSP cannot honor divorce orders once the account has been closed and funds withdrawn.

It is best to submit all orders before retirement, or immediately after the divorce is finalized.

9. Mistakes That Can Cost You

Here are common pitfalls federal employees make when handling divorce-related benefits:

• Failing to submit court orders to OPM or TSP.

• Not clearly stating benefit amounts in the court decree.

• Assuming FEHB coverage continues for a former spouse.

• Not updating beneficiary forms for TSP or FEGLI.

• Ignoring survivor annuity elections at retirement.

Each of these can create serious legal and financial complications, and in some cases, irreversible loss of benefits.

10. What You Should Do Now

If you’re divorced or in the process of divorcing, and you are a federal employee or retiree, take these steps immediately:

• Review your court orders with an attorney who understands federal retirement benefits.

• Confirm whether a COAP or RBCO has been submitted and accepted.

• Check your survivor annuity election and beneficiary designations.

• Understand how much of your annuity or TSP might be awarded, and how it affects your income.

This is not an area where you can afford to guess. The legal and financial consequences can last the rest of your life.

Protecting Your Retirement After Divorce Starts With Being Proactive

Divorce doesn’t have to derail your retirement, but it does require extra planning. Your annuity, TSP, survivor benefits, and insurance coverage can all be shaped by how your court orders are written and submitted. If you are unsure whether your paperwork is in order or what your options are, speak with a licensed professional listed on this website for tailored guidance. Your retirement is too important to leave to chance.