The Ramsey Show Highlights “You Got The Worst Deal in the History of Divorces”
Nov 5, 2025
Active-duty service member Thomas shares his challenging journey post-divorce, revealing how he went from a debt-free status to accumulating $57,000 in debt due to extravagant purchases. He navigates complex topics like retirement account division and whether he should halt contributions to his Thrift Savings Plan. The discussion dives into the unusual terms of his settlement concerning TSP and pension arrangements. With expert advice from Dave, Thomas considers selling his Ford Raptor to rebalance his finances amid the turmoil.
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Divorce Led To Rapid Debt Accumulation
- Thomas is an 18-year active-duty service member who divorced two years ago and went from debt-free to $57,000 in debt.
- He accumulated the debt after buying a Ford Raptor and using credit cards for household items post-divorce.
Future-Value TSP Split Is A Bad Deal
- Dave highlights an unusual divorce clause where the ex would receive half of the TSP at age 67 rather than half of current assets.
- He calls it a historically bad deal because it rewards future contributions to the ex without current transfer.
Immediate Transfer Then Rollovers Is Standard
- Dave explains that transferring half of a retirement account now is normal and can roll into an IRA tax-free.
- He contrasts that with the strange option of awarding half only at age 67, which he hasn't seen in 35 years.