Boca Raton Divorce for Federal Employees Lawyer
If you or your spouse is a federal employee, the division of assets during divorce is a complex prospect. The issue becomes even more complicated when the different systems used for federal benefits are taken into account. These systems include the Civil Service Retirement System (CSRS) and the Federal Employee Retirement System (FERS). It is critical that you understand the rules surrounding these systems and how they can impact the outcome of your divorce case. Below, our Boca Raton divorce lawyer explains further.
Federal Retirement Benefits and Divorce
Federal employees typically have two defined retirement assets. These are their Thrift Savings Plan and their federal employee pension. Employees who began working with the federal government prior to 1987 participate in CSRS, while those who began work as a federal employee after this date participate in FERS. Both systems allow federal employees to receive monthly payments after they retire.
Like other retirement plans, federal benefits are typically considered marital property and so, they are subject to division during divorce. The courts use a very specific formula to determine the marital share of a federal pension during divorce. The formula considers the total number of years the employee worked for the federal government, and the length of time the person was married during those same years. The court will then determine how to divide it fairly, but that does not necessarily mean the benefits are divided fairly.
The Thrift Saving Plan and Divorce
Federal employees in Boca Raton can participate in the Thrift Saving Plan (TSP), which is the federal equivalent of 401(K) plans in the private sector. Any funds contributed to the TSP throughout the marriage will be subject to property division hearings. Spouses of federal employees can receive their share of a TSP fund through direct transfer to a separate retirement account, a taxable distribution, or both. The transfer will usually take place once the divorce proceedings are finalized. Spouses of federal employees also do not have to wait until their spouse retires to receive their share of the TSP.
When a federal employee has not yet retired, the share their spouse will receive is unknown. As such, a marital settlement agreement or trial is usually necessary to allocate the spouse’s fair share. A Court Order Acceptable for Processing (COAP) will also apply to the divorce case. The COAP is stored with the Office of Personnel Management until the time the federal employee retires, and the marital share will be calculated at this time.
Our Divorce for Federal Employees Lawyer in Boca Raton Can Advise on Your Case
All divorce cases have the potential to become complicated. However, when one spouse is a federal employee, there are even more complex factors to consider. At Williams & Varsegi, our Boca Raton divorce for federal employees lawyer can review the facts of your case and help you keep what is most valuable to you. Call us now at 954-255-5655 or fill out our online form to schedule a consultation and to learn more.
