What Every Divorced Federal Worker Should Know Before Assuming They’ll Keep Their Full Retirement Package

Key Takeaways

• Divorce can dramatically alter your federal retirement benefits, including your pension, TSP, FEHB, and survivor benefits. Ignoring this could result in losing thousands over time.

• Court orders and beneficiary forms override assumptions. Just because you are the federal worker doesn’t guarantee you’ll retain full control or access post-divorce.

Your Retirement Package Is Not Automatically Yours After Divorce

If you’re a federal employee or retiree who has gone through a divorce, it’s crucial to understand that your retirement benefits are not immune from division. Too many federal workers wrongly assume they’ll walk away from a divorce with their pension, Thrift Savings Plan (TSP), and health coverage untouched.

That’s rarely the case.

Retirement benefits earned during a marriage are considered marital property in most states. That means your former spouse may have a legal claim to part of your annuity, your TSP balance, and even continued health insurance coverage, depending on how the divorce was structured and documented.

What Can Be Divided in a Divorce?

Divorces involving federal employees generally involve four key benefit categories:

1. Federal Annuity (FERS or CSRS)

Your pension can be divided through a Court Order Acceptable for Processing (COAP). A COAP can:

• Allocate a portion of your monthly annuity to your former spouse.

• Allow the former spouse to receive a survivor annuity if you pass away.

• Include cost-of-living adjustments (COLAs) on the awarded portion.

If the COAP is properly filed with OPM, your former spouse could receive a portion of your pension for life. This is true even if you remarry.

2. Thrift Savings Plan (TSP)

TSP accounts can be split through a Retirement Benefits Court Order (RBCO). This legal document must specify:

• The dollar amount or percentage of the TSP to be awarded.

• Whether earnings or losses on that amount should be included up to the date of disbursement.

The TSP will not act without a valid court order. If you neglect to include proper language, your spouse could come back years later to claim a portion.

3. Federal Employees Health Benefits (FEHB)

FEHB coverage is not automatically available to former spouses after a divorce. To retain FEHB, your former spouse must:

• Be covered under your FEHB plan while you’re still employed or retired.

• Have a qualifying court order granting them entitlement.

• Apply for coverage within 60 days of divorce or eligibility.

The spouse can then enroll in their own Temporary Continuation of Coverage (TCC) plan or a Spouse Equity Act policy. Both options require the ex-spouse to pay 100% of premiums plus a 2% administrative fee.

4. Federal Employees’ Group Life Insurance (FEGLI)

Life insurance designations supersede court orders unless changed by you. This means:

• If your former spouse is listed as your FEGLI beneficiary, they will get the payout, even if your divorce decree says otherwise.

• You must update your SF-2823 beneficiary form to ensure benefits go where you intend.

Key Mistakes Divorced Federal Employees Often Make

Assuming everything stays the same after divorce is a costly error. Here are some of the most common and damaging mistakes:

Not Filing the COAP with OPM

Even if your divorce decree awards your pension or survivor benefit to your ex-spouse, OPM cannot act on it without a COAP. This mistake can delay payments or shift legal responsibilities unexpectedly.

Failing to Update TSP Beneficiary Forms

TSP does not automatically follow divorce agreements. If your beneficiary form names your ex-spouse, that’s who gets your TSP balance when you die—regardless of your intentions.

Overlooking Survivor Benefits

Federal retirees often overlook the survivor annuity requirement. If your divorce decree grants a survivor benefit but you fail to elect one at retirement, your former spouse may sue your estate. You must formally elect and pay for the benefit.

Assuming FEHB Will Cover an Ex-Spouse Automatically

Once your divorce is final, your ex-spouse is removed from your FEHB family enrollment unless a qualifying court order is filed and action is taken within 60 days.

Survivor Benefits: Your Former Spouse May Still Have a Claim

Survivor benefits under FERS and CSRS are a common source of confusion. These benefits allow your ex-spouse to continue receiving part of your annuity after your death. But they are not automatic:

• Your former spouse must be named in a COAP that explicitly grants survivor benefits.

• You must formally elect the survivor benefit and accept the reduction in your monthly pension.

If you remarry and designate your new spouse for survivor benefits without resolving the former spouse’s rights, you risk disinheriting both or sparking a legal battle.

Post-Divorce Retirement: Know the Timelines

Timing is critical in preserving or contesting retirement-related benefits. Here are the key time-sensitive actions:

• FEHB TCC enrollment: Must occur within 60 days of divorce.

• FEHB Spouse Equity Act: Application must be made within 60 days and a court order must be on file.

• TSP court order: Must be received by the TSP before withdrawal or transfer of assets.

• COAP for annuity: Should be submitted as early as possible after divorce.

• Survivor benefits: Must be elected at retirement or within 30 days of divorce if already retired.

• FEGLI designation: Update your SF-2823 form immediately after divorce.

Missing these timelines can permanently block access to benefits or allow your former spouse unintended access.

Common Questions You May Have After Divorce

Will my former spouse get half of everything?

Not necessarily. Division depends on state law, the length of the marriage, and how benefits were earned during the marriage. Many court orders divide only the portion earned during the marriage.

Can I name someone else for survivor benefits?

Only if the divorce decree or COAP does not grant your ex-spouse survivor benefits. If it does, that benefit must be honored unless the court order is modified.

What if I never changed my TSP or FEGLI beneficiary?

Then your ex-spouse may still receive those funds. Court orders do not override beneficiary designations. You must file updated forms directly with TSP and OPM.

What happens to Social Security?

Divorce doesn’t affect your Social Security eligibility. Your former spouse may claim benefits based on your record if:

• You were married at least 10 years.

• Your ex-spouse is unmarried and age 62 or older.

• The benefit they would receive based on their own work history is less than what they’d get from yours.

Your Social Security benefit is not reduced by this.

Why Acting Now Protects Your Retirement Later

Too many public sector workers approach divorce without legal or financial guidance, only to discover years later that they unknowingly gave up or risked significant portions of their retirement. The cost of inaction can be immense, both financially and emotionally.

Even if you divorced years ago, it’s not too late to correct some errors—if the right documents are filed in time. A licensed professional can help you:

• Review or revise your COAP or RBCO.

• Ensure your FEGLI and TSP beneficiary forms match your intent.

• Clarify survivor benefit elections.

• Assess how remarriage affects your plan.

Your Retirement Security Depends on What You Do Next

Divorce affects more than just your personal life. It has a long-lasting impact on your retirement income, survivor protections, and insurance benefits. It’s essential to treat your post-divorce financial structure with the same care as your federal career.

If you’re unsure whether your benefits are protected—or accidentally at risk—get in touch with a licensed professional listed on this website. With guidance, you can safeguard your retirement from past decisions and move forward with confidence.