17. Can a military thrift savings plan (TSP) be subject to equitable distribution in a divorce case?
Yes. The National Defense Authorization Act allows servicemembers to contribute up to 7% of their basic pay to a Thrift Saving Plan (TSP). The Military does not offer any matching funds from the federal government. In summary, a military thrift savings plan is very similar to a private sector 401(k) plan. The individual’s taxes are deferred on the contributions and appreciation until they are disbursed. A military thrift savings plan is treated just like any other retirement asset. The thrift savings plan must be valued and it will be distributed via a Qualified Domestic Relations Order (QDRO).
18. What are the mechanics to effectuate a distribution of a military pension?
New Jersey caselaw has consistently held that military retirements are just like other pension plans, and they are “property.†Therefore, a military pension or retirement has consistently been subject to equitable distribution in a divorce.
A military retirement is a federal entitlement and it is not a qualified pension plan. Therefore, no Qualified Domestic Relations Order is required. The procedure to effectuate a division of a military pension is to simply send to the DFAS a DD Form 2293, Application for Former Spouse Payments from Retired Pay. Moreover, a certified copy of the court order or judgment of divorce that divides the retirement must accompany Form 2293. The order or divorce judgment should contain the following information:
An indication that the servicemember’s rights under the Servicemember’s Civil Relief Act were respected,
An indication of the New Jersey divorce court’s jurisdiction over the servicemember (either residence, domicile, or consent to jurisdiction, including not contesting jurisdiction),
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