Q. I was told in mediation that my 6-month-old, 15-year residential TSP loan of $300/month ($42,000) does not get considered as debt in figuring division of assets. This TSP debt was to acquire our principal residence that is without bank lien and will be granted to her. Am I required to pay this monthly debt on my TSP without some sort of concession on the part of my spouse?
A. If the loan payments are not made, the outstanding balance will be declared a taxable distribution and a 1099 for this distribution will be sent to the account owner.