FERS Divorce Guide 2026: Dividing Your Pension and TSP

Last Updated: January 17, 2026 Reading Time: 11 min

Going through a FERS divorce is complicated. Your federal pension and TSP don't work like private sector retirement plans, and using the wrong court order language can cost you tens of thousands of dollars.

This guide covers everything you need to know about dividing FERS benefits in divorce, including a major October 2025 court ruling that changed how the FERS Supplement is handled.

Key Takeaways

• Federal pensions require a COAP (Court Order Acceptable for Processing), not a QDRO. OPM will reject standard QDROs.
• TSP accounts require a separate RBCO (Retirement Benefits Court Order) with a $600 processing fee
• Your ex-spouse cannot receive pension payments until YOU actually retire, not when you become eligible
• The October 2025 OPM v. Moulton ruling means the FERS Supplement is NOT automatically divided unless your decree specifically mentions it
• Use an attorney familiar with federal benefits. Generic divorce attorneys often get the terminology wrong.

Why QDROs Don't Work for Federal Employees

If your divorce attorney mentions a QDRO, stop them immediately.

A Qualified Domestic Relations Order (QDRO) applies to private sector retirement plans governed by ERISA. Federal pensions are NOT covered by ERISA. They're governed by Title 5 of the U.S. Code.

OPM will reject any court order that uses QDRO language or references ERISA. You'll need to go back to court and get a corrected order, wasting time and money.

Here's what you actually need:

Benefit	Required Court Order	Agency
FERS/CSRS Pension	COAP (Court Order Acceptable for Processing)	OPM
Thrift Savings Plan	RBCO (Retirement Benefits Court Order)	TSP

These are separate orders. One doesn't cover both.

How Your FERS Pension Gets Divided

The COAP Process

A COAP tells OPM how to divide your pension when you retire. It must address three things:

1. Employee annuity division: How much of your monthly pension goes to your ex-spouse
2. Refund of employee contributions: If you leave federal service before retirement, who gets your contributions back
3. Survivor annuity provisions: Whether your ex-spouse receives benefits if you die first

Three Ways to Divide the Pension

1. Marital Fraction (Most Common)

This formula calculates the "marital portion" of your pension:

Marital Fraction = Months of Service During Marriage / Total Months of Service at Retirement

Example:

• You worked 20 years (240 months) total
• You were married for 10 years (120 months) during your career
• Marital fraction: 120 / 240 = 50%
• If your ex gets half the marital portion: 50% × 50% = 25% of your total pension

2. Fixed Dollar Amount

The decree specifies a specific monthly amount (e.g., "$1,500 per month"). This does NOT automatically adjust with COLA increases unless the decree says so.

3. Fixed Percentage

The decree awards a percentage of your gross annuity (e.g., "25% of monthly annuity"). This automatically adjusts with COLA.

Critical Timing Rule

Here's what catches many federal employees off guard: Your ex-spouse cannot receive any pension payments until you actually retire and apply for your annuity.

This is different from private sector pensions. Even if you're eligible to retire at 57, if you keep working until 62, your ex-spouse waits until you apply for benefits. They cannot force you to retire.

The October 2025 FERS Supplement Ruling

This is big news that most divorce attorneys don't know about yet.

What Changed

In OPM v. Moulton (Federal Circuit, October 2025), the court ruled that OPM may only divide the FERS Annuity Supplement if the divorce decree expressly provides for such division.

Before the ruling (2016-2025): OPM interpreted any pension division as implicitly including the supplement.

After the ruling: The supplement is only divided if your court order specifically mentions it.

Why This Matters

The FERS Supplement can be worth $15,000 to $25,000+ per year from your MRA until age 62. That's potentially $75,000 or more depending on when you retire.

If your divorce decree only mentions the "basic annuity" or is silent on the supplement, you may be able to keep it in full under the new ruling.

If you divorced between 2016 and 2025 and had your supplement improperly divided, you may have a claim.

Protecting Your Supplement

If you're currently going through divorce and want to protect your supplement:

• Ensure your decree specifies "basic annuity only"
• Explicitly exclude the FERS Supplement from division
• Have an attorney familiar with the Moulton ruling review your documents

How Your TSP Gets Divided

Your TSP account requires a separate court order called an RBCO (Retirement Benefits Court Order).

Four Requirements for a Valid RBCO

1. Issued by a U.S. court (any state, DC, or U.S. territory)
2. Expressly references "Thrift Savings Plan", not "government retirement" or "thrift savings account"
3. Specifies the exact amount: Dollar amount OR percentage as of a specific past or current date (not a future date)
4. Names an eligible payee: Current or former spouse, or dependent children

Processing Timeline

Stage	Timeframe
TSP reviews draft order	20 days
Account restriction period	Up to 18 months
Decision letter issued	After order qualified
Payment made	31-60 days after decision
Total process	2-8 months typical

The $600 Fee

TSP charges a $600 processing fee for RBCOs. This is deducted from the participant's account, not the recipient's share. It's non-refundable even if the order is rejected.

Tax Trap: Traditional vs. Roth TSP

Traditional TSP and Roth TSP are NOT equivalent values in divorce:

Account Type	Value	After-Tax Value (22% bracket)
Traditional TSP	$100,000	~$78,000
Roth TSP	$100,000	$100,000

Make sure your settlement accounts for these tax differences. A 50/50 split of dollar amounts isn't actually equal if one side is pre-tax and the other is after-tax.

Former Spouse Survivor Annuity

Your ex-spouse may be entitled to a survivor annuity, meaning they receive a portion of your pension if you die first.

Eligibility Requirements

• Marriage lasted at least 9 months
• You have at least 18 months of creditable FERS service
• Marriage ended before your death

Benefit Amounts

Election	Survivor Receives	Cost to Your Pension
Full	50% of your unreduced annuity	10% reduction
Partial	25% of your unreduced annuity	5% reduction

When Survivor Benefits End

Former spouse survivor annuity terminates if:

• Your ex-spouse dies
• Your ex-spouse remarries before age 55 (exception: your marriage lasted 30+ years)
• The court order is modified before you retire

Restart provision: If your ex's remarriage ends in death, divorce, or annulment, the survivor annuity can restart.

FEHB Coverage After Divorce

Your ex-spouse loses FEHB coverage at midnight on the day your divorce is finalized (with a 31-day extension for claims).

They have two options to continue coverage:

Option 1: Temporary Continuation of Coverage (TCC)

• Duration: Up to 36 months
• Cost: Full premium (employee share + government share) plus 2% administrative fee
• Deadline: Must elect within 60 days of divorce
• Best for: Short-term bridge to Medicare or new employer coverage

Option 2: Spouse Equity Coverage (Potentially Lifetime)

Requirements:

• Entitled to portion of your annuity OR survivor annuity
• Was covered under FEHB for at least 1 day in the 18 months before divorce
• Enrolls within 60 days of divorce

Cost: Full premium (no government contribution)

Duration: Until remarriage before age 55 (if receiving survivor annuity benefits)

The 60-Day Deadline Is Absolute

Both options require enrollment within 60 days of divorce. There are no exceptions. If your ex-spouse misses this deadline, they lose access to FEHB coverage permanently.

Estimate Your Pension Before Divorce

Before negotiating, you need to know what your pension is actually worth.

Use the FERS Retirement Calculator to estimate your monthly annuity based on your service time and high-3 average salary. Then apply the marital fraction to see what portion is subject to division.

You can also use the High-3 Calculator to verify your average salary, which is the basis for your pension calculation.

For TSP, use the TSP Calculator to model how your account might grow with and without the division amount.

Submission Addresses

For COAP (Pension Division)

Send court-certified copy to:

U.S. Office of Personnel Management
Retirement Services Program
Court-Order Benefits Branch
Post Office Box 17
Washington, DC 20044-0017

Phone: (888) 767-6738

For RBCO (TSP Division)

Submit through the TSP website or mail to:

Thrift Savings Plan
P.O. Box 385200
Birmingham, AL 35238

Common Mistakes That Cost Money

1. Using "Account" Instead of "Annuity"

OPM interprets "account" as your employee contributions only (typically $10,000-$50,000), not your monthly pension (potentially $500,000+ lifetime value).

Wrong: "50% of the federal retirement account" Right: "50% of the FERS basic annuity"

2. Referencing "Thrift Savings Account"

TSP will reject orders that don't use the exact name.

Wrong: "Thrift Savings Account" or "federal 401k" Right: "Thrift Savings Plan"

3. Forgetting the FERS Supplement

After the 2025 Moulton ruling, if you want the supplement divided, you must say so explicitly. If you want to keep it, make sure the decree excludes it.

4. Missing the FEHB Deadline

60 days. No exceptions. Mark your calendar.

Frequently Asked Questions

Can my ex-spouse get my federal pension before I retire?

No. Unlike private sector pensions, federal law prohibits any FERS pension payments to a former spouse until you actually retire from federal service AND apply for your annuity. Payments do not begin when you become eligible, only when you separate and apply.

What is the difference between a QDRO and a COAP?

A QDRO applies to private sector retirement plans governed by ERISA. Federal pensions require a COAP (Court Order Acceptable for Processing) instead. Using QDRO language in a federal pension division will result in OPM rejection. TSP requires an RBCO, not a QDRO.

How much of my TSP can my ex-spouse receive in divorce?

There is no statutory cap. The division depends on your settlement. The TSP requires an RBCO specifying either a fixed dollar amount or percentage as of a specific date. TSP charges a $600 processing fee.

Can my ex-spouse keep FEHB health insurance after divorce?

Not automatically. They have two options: Temporary Continuation of Coverage (TCC) for up to 36 months at full premium plus 2%, or Spouse Equity coverage if entitled to a portion of your annuity. Both require enrollment within 60 days of divorce.

What happens to my FERS Supplement in divorce?

Following the October 2025 OPM v. Moulton ruling, the FERS Supplement is NOT automatically divided. Your decree must specifically mention the supplement for it to be divided. If silent on the supplement, you may retain it in full.

How do I calculate the marital portion of my pension?

Use the marital fraction: (Months of federal service during marriage) / (Total months of service at retirement). For example, 10 years married during a 20-year career = 50% marital portion. Your ex would typically receive some percentage of that portion.

What if my divorce decree uses wrong terminology?

Using incorrect terminology can cost tens of thousands of dollars. Common mistakes include calling the pension an "account," using QDRO language, or referencing "Thrift Savings Account." Have an attorney familiar with federal benefits review your order before finalization.

Related Resources

• FERS Retirement Calculator: Estimate your pension value
• TSP Calculator: Model TSP growth scenarios
• High-3 Calculator: Calculate your average salary
• FERS Retirement Guide: Complete guide to your pension
• TSP Guide 2026: Contribution limits and withdrawal rules

Sources

• OPM Court-Ordered Retirement Benefits
• TSP Divorce Information
• OPM Former Spouse FEHB Information
• 5 CFR Part 838 - Court Orders Affecting Retirement Benefits