“You Got The Worst Deal in the History of Divorces”

[Music] Brought to you by the Every Dollar app. Start budgeting for free today. >> I'm calling today because uh I'm 18 years active duty uh military. >> Thank you. >> Um unfortunately Thank you. Uh unfortunately, a couple years ago, life happened. Um and I wounded up getting divorced. Um with that, before we got divorced, my ex-wife and I we were completely debtree and uh I was able to contribute 60% of my income towards investments. Holy. >> Um, 40% was going to my TSP and another 20% was going to my kids' college funds. >> Wow. >> Um, but now that I'm divorced, uh, I've been divorced now for two years. Um, I have found myself accumulating a little bit of debt. I'm back at $57,000 worth of debt. >> What in the world? What did you buy in two years? >> Uh, so I bought a vehicle uh, your baby steps. >> What kind of truck is it? Um, it's it's a Ford Raptor. >> Well, I think we found the problem, Thomas. >> It's definitely part of it. Um, >> no, it's the whole thing. >> That's all of it. Taylor Swift. >> Future divorce raptor truck. We know what it is. >> It's called I'm the problem. It's me. >> So, my uh I'm calling because I can pay this debt off pretty quickly. What do you make? $78,000 a year. >> You make 78 a year and you owe what on the Raptor? >> I owe 57. >> Yeah. >> Uh well, I owe 37 on the Raptor and 18,000 in uh credit card debt that I used to purchase furniture and stuff for the house that I got divorced. >> Okay. All right. >> Um I still contribute the 60% of my income towards my TSP. >> Um >> you can't afford to do that if you're broke. Um, so I was thinking, so my my philosophy here and what I was looking for is some guidance. Uh, I was thinking about cutting off my TSP. Um, however, in the divorce, uh, my ex-wife decided to go ahead, hey, your whole military pension is yours. I just want half the TSP. Um, I've still been contributing because in my head I was like, I'd rather make a little bit more money on the back end versus stop contributing altogether and out of spite just not contribute because I don't want her to get wait when does she get half? Now >> uh uh 67. >> What? Oh no, wait a minute. That's not possible. >> Is this divorce isn't final, is it? Um, it is. Yes, sir. So, when we went to court, there was I had several different uh options that I could do. Um, >> and you agreed to give her half of your TSP at age 67. >> Yes. >> Not h not what half of it becomes by then, but whatever's in there at H. That's not right. Something's wrong. >> That's based off of what the lawyers were saying and stuff. They said that was the better of the deal. Apparently, these lawyers didn't take math class. That's a horrible deal. Um, all right. So, you need to get clarification because I don't think you understand what really happened. Or you got the worst deal in the history of divorces. >> I've never heard of this deal. This is what you got. >> It is normal for you to transfer half of your TSP to her. Now, that is a normal process in a divorce. and she can roll that into an IRA and have no taxes. It is very strange for her to get anything at age 67. Like I've never heard of this in 35 years of doing what I do. That's strange. >> What they wanted to do was she would get half of my military pension on top of half of the TSP. >> Yeah, that would be normal. >> But half the TSP today, not at 67. Well, now what the deal that they had worked out was she doesn't get any of the military pension. She only get the TSP. >> Okay. Now or at 67? >> At 67 when it matures. >> Okay. Then it should be half what? Half like you're half of your TS. How much is in your TSP today? >> Uh 166. >> Okay. So half would be 80 84 83,000. Okay. Right. >> Yes. >> Today. So, whatever 83,000 grows to at age 67, she should get. But she shouldn't get half of everything you put in between now and then because otherwise you would put in nothing between now and then. >> Right. So, that was going to be my next question is if I just stop contributing alto together. >> You have to contribute. Listen, if you did the worst deal in divorce history and she gets half of your TSP regardless of whether you put money in or not, that's the worst deal I've ever heard of in my life. I've never even heard of you get half at 67. That's just very weird, dude. Like, like these lawyers are completely freaking incompetent. Weird. Okay, but if you did do that, you need to go back and clarify. Is it what half of it today becomes what 83,000 becomes at 67 or is it just half of whatever's in there? Cuz if it's half of whatever's in there, you don't put another dime in it. You're done with that? You got to go put money in a Roth IRA and you got to put money in other stuff. But you the TSP is off limits to you because she's going to take half of everything you put in there for the next you know how many how old are you? Uh, I'm 36. >> Yeah. Good God. For 30 years, you're going to contribute to her. No, thank you. You did the worst deal ever. >> So, no, we're not doing that. That's dumb. That's dumber than a rock, man. I'm telling you that I'm so pissed at your lawyer right now. I can't see. I want to smack him. >> This is horrible. >> But you did the deal. I guess it's final. >> So, you need to go back and get clarity. If she gets what half what 83,000 becomes or if she gets half of whatever's in there, >> it's going to be whatever's in there. Otherwise, they would have just transferred the 83 out, they should have just transferred the 83 out. That's what they should have done. That would be normal instead of this dumb butt thing they did. >> So, >> yeah, John is correct. It is whatever's in there later cuz I tried to fight and get the half now, but then there were like, >> okay, then here's what here's what it is. She gets half what that half becomes because it's not going to become anything else cuz you're not going to add anything else to it. You're stupid if you do. >> Okay. >> But you are the one that signed this divorce decree also. So Oh my god. This is a horrible man. It's just horrible. >> She has 30year claim on future earnings for you. >> Jeez, man. >> Y'all have kids? >> We have two of them. >> I've heard I've heard a few >> This is I want to get away from this woman really bad is what this is. I've heard I've heard and a rightfully so a future claim on future earnings if you've got kids through the age of 18. Right? So if you were making 25 grand and suddenly you're making 150 grand. >> That's child support. >> That's not this >> that's child support. That's normal. >> That's that's what I'm saying. I've heard of that. >> That's normal. But half the 401k is normal. Half the TSP is normal. But you transfer it now and it rolls out into an IRA and then she goes whatever she does with it. Okay. Your answer is you have a truck you can't afford that you bought while you were grieving your broken heart and you broke your heart was broken by your wife and your idiot attorney. So you have two reasons for a broken heart. So you've got to sell this truck, honey. And I love Raptors. I drove one over here today. I like them, but this truck is brain damage. So it's killing you. You cannot afford to drive this truck. It's more truck than you can afford with the money you make. Sell your truck. Get your budget back balanced and move into the future. And please don't put anything else in this TSP. Create your free every dollar budget today. The simplest way to budget for your