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

Summary

Podcast Summary

Episode Overview

Podcast: The Ramsey Show Highlights
Episode Title: "You Got The Worst Deal in the History of Divorces"
Release Date: November 5, 2025
Hosts: Dave Ramsey, John Delony, Guest (Caller: Thomas)

In this high-impact episode, hosts respond to a military servicemember who is struggling to recover financially after a divorce that left him with significant debt and an unusual retirement account division. The episode is fast-paced, practical, and sharply critical of legal missteps—centered on money mistakes made post-divorce, questionable legal advice, and urgent steps moving forward.

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Key Discussion Points & Insights

Caller Situation – Post-Divorce Financial Troubles

• Caller ("Thomas"): 18-year active duty military, recently divorced.

• Before Divorce: Debt-free; saving/investing 60% of his income (40% to TSP, 20% to kids’ college funds).

• After Divorce: $57,000 in debt due to a new vehicle purchase (Ford Raptor) and furnishing the new home.

  Notable Quote:
  Thomas [00:37]: “But now that I'm divorced … I have found myself accumulating a little bit of debt. I'm back at $57,000 worth of debt.”

Debt Breakdown and Purchase Decisions

• Vehicle Debt: $37,000 on a Ford Raptor.

• Credit Card Debt: $18,000 for household furnishings.

• Income: $78,000/year.

  Notable Moment:
  Dave Ramsey [01:03]: “Well, I think we found the problem, Thomas.”
  John Delony [01:11]: “It’s all of it.”

Retirement Contributions Amidst Financial Strain

• Thomas is still contributing heavily (60%) to his TSP post-divorce, despite new debts.

• He questions whether to continue, since his ex-wife is set to receive half of his TSP at a future date, per the divorce agreement.

  Memorable Exchange & Sarcasm: Dave Ramsey [01:50]: “You can’t afford to do that. Broke.” Dave [01:12]: “Taylor Swift wrote a song about your divorce. Raptor truck. We know what it is.” John [01:15]: “It’s called I’m the problem. It’s me.”

Unusual Divorce and Retirement Account Settlement

• Ex-Wife's Claim: She waived claim on the military pension in exchange for half of TSP at age 67.

• Unprecedented Deal: Hosts are shocked by the unusual arrangement—normally, a spouse gets half as of today at divorce, not half of whatever accumulates by age 67.

  Notable Quotes:

  • Dave Ramsey [03:06]: “Apparently, these lawyers didn’t take math class. It’s a horrible deal.”
  • John Delony [03:22]: “I’ve never heard of this deal. This is what you got?”
  • Dave Ramsey [05:52]: “Yeah. Good God. For 30 years you’re going to contribute to her? No, thank you. You did the worst deal ever.”

Legal and Financial Guidance

• Hosts Advise:

  • Immediately clarify the legal settlement—does the ex get half of what the TSP was at the time of divorce, with growth? Or half of whatever’s in the TSP at age 67, including future contributions?
  • If future contributions are affected, stop contributing to the TSP and use other retirement savings vehicles (like Roth IRA).
  • Sell the unaffordable vehicle to eliminate debt and rebalance the budget.

  Action-Oriented Guidance:

  • Dave Ramsey [06:49]: “If you did the worst deal in divorce history and she gets half of your TSP regardless … you don’t put another dime in it. You’re done with that. … The TSP is off limits to you because she’s going to take half of everything you put in there.”
  • Dave Ramsey [07:22]: “You have a truck you can’t afford that you bought while you’re grieving your broken heart. … Sell your truck, get your budget back balanced and move into the future. And please don’t put anything else in this TSP.”

Emotional Resonance & Tone

• The hosts are empathetic to Thomas’s emotional state post-divorce, but sharply critical of financial and legal choices.
• Humor is used to lighten the critique, such as references to Taylor Swift lyrics, but the guidance is firm: “This truck is brain damage. So it’s killing you.”

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Notable Quotes & Timestamps

• [01:12] John Delony: “It’s all of it.”
• [01:50] Dave Ramsey: “You can’t afford to do that. Broke.”
• [03:06] Dave Ramsey: “Apparently, these lawyers didn’t take math class. It’s a horrible deal.”
• [05:52] Dave Ramsey: “For 30 years you’re going to contribute to her? No, thank you. You did the worst deal ever.”
• [07:22] Dave Ramsey: “You wrote your heart was broken by your wife and your idiot attorney. … Sell your truck, get your budget back balanced and move into the future.”

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Timeline of Key Segments

• [00:11 – 00:47]: Thomas shares his backstory—pre-divorce financial health, post-divorce debt.
• [00:55 – 01:20]: Reasons for new debt—purchase of Ford Raptor and home furnishings.
• [01:50 – 02:53]: Contributions to TSP, explanation of the divorce settlement terms.
• [03:01 – 04:02]: Hosts question the legal details, express disbelief, and urge clarity.
• [04:13 – 06:49]: Debate over what exact share the ex-wife is entitled to and the implications for future contributions.
• [07:02 – 07:22]: Conclusion; advice to rebalance finances and discontinue TSP contributions under current terms.

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Conclusion & Takeaways

• Get legal clarity on divorce settlement specifics before making further financial decisions.
• Cut losses: Stop TSP contributions if all future funds are shareable with the ex.
• Sell high-cost assets (like an expensive truck bought during emotional times) to straighten out the budget.
• Lesson for Listeners: Major life changes require cautious, math-based decisions, not emotional ones—especially with legal contracts and large purchases.

The episode is an urgent cautionary tale, combining empathy and tough love to steer listeners away from costly post-divorce mistakes.

Transcript

[A]

Brought to you by the EveryDollar app. Start budgeting for free today.

[B]

I'm calling today because I'm 18 years active duty military.

[A]

Thank you.

[B]

Unfortunately. Thank you. Unfortunately, a couple years ago, life happened and I ended up getting divorced. With that, before we got divorced, my ex wife and I, we were completely debt free. And I was able to contribute 60% of my income towards investments.

[A]

Holy.

[B]

40% was going to my TSP and another 20% was going to my kids college funds.

[C]

Wow.

[B]

But now that I'm divorced. I've been divorced now for two years. I have found myself accumulating a little bit of debt. I'm back at $57,000 worth of debt.

[A]

What in the world? What did you buy in two years?

[B]

So I bought a vehicle. Baby steps.

[A]

What kind of truck is it?

[B]

It's a Ford Raptor.

[A]

Well, I think we found the problem, Thomas.

[B]

Yeah, it's definitely part of it.

[A]

No, it's the whole.

[C]

It's all of it.

[A]

Taylor Swift wrote a song about your divorce. Raptor truck. We know what it is.

[C]

It's called I'm the problem. It's me.

[B]

Yeah, so my. I'm calling because I can pay this debt off pretty quickly.

[A]

What do you make?

[B]

$78,000 a year?

[A]

You make 78 a year and you owe what on the Raptor?

[B]

I owe 57. Yeah, well, I owe 37 on the raptor and 18,000 in credit card debt that I use to purchase furniture and stuff for the house. I got divorced.

[A]

Okay, all right.

[B]

I still contribute the 60% of my income towards my TSP.

[A]

You can't afford to do that. Broke.

[B]

So I was thinking. So my. My philosophy here and what I was looking for is some guidance. I was thinking about cutting off my tsp. However, in the divorce, my ex wife decided to go ahead. Hey, your whole military pension is yours. I just want half the tsp. 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.

[A]

When does she get half? Now.

[B]

67.

[A]

What? No, wait a minute. That's not possible. Is this divorce isn't final. Is.

[B]

Is. Yes, sir. So when we went to court, there was. I had several different options that I could do.

[A]

And you agreed to give her half of your TSP at age 67?

[B]

Yes.

[A]

Not what half of it becomes by then, but whatever's in there that's not right. Something's wrong.

[B]

That's based off of what the lawyers were saying and stuff. They said that was the better of the deal.

[A]

Apparently, these lawyers didn't take math class. It's a horrible deal. 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.

[C]

I've never heard of this deal. This is what you got.

[A]

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.

[B]

What they wanted to do was she would get half of my military pension on top of half of the TSP.

[A]

Yeah, that would be normal. But half the TSP today, not at 67.

[B]

Well, now, with the deal that they had worked out was she doesn't get any of the military pension. She only gets the tsp.

[A]

Okay, now or at 67.

[B]

At 67, when it matures.

[A]

Okay, then it should be half. What? How? Like you're half of your ts. How much is in your tsp today?

[B]

166.

[A]

Okay, so half would be 80. 84,000. 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.

[B]

Right. So that was going to be my next question is if I just stop contributing altogether.

[A]

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, 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? Because 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 the TSP is off limits to you because she's going to take Half of everything you put in there for the next. How many. How old are you?

[B]

I'm 36.

[A]

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. 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.

[C]

Whatever'S in there, it's going to be whatever's in there. Otherwise they would have just transferred the 83 out of.

[A]

They should have just transferred the 83 out. That's what they should have done. That would be normal instead of this dumb.

[B]

But yeah, John is correct. It is whatever's in there later. Because I tried to fight and get the half now, but then they were.

[A]

Like, okay, then here's what. Here's what it is. She gets hat what that half becomes because it's not going to become anything else because you're not going to add anything else to it. You're stupid if you do.

[B]

Okay?

[A]

But you are the one that signed this divorce decree also, so. Oh, my God, this is a horrible man. It's just.

[C]

She has 30 year claim on future earnings for you. She's have kids.

[B]

We have two of them.

[C]

I've heard. I've heard a few.

[A]

This is. I want to get away from this woman really bad is what this is. I've heard.

[C]

I've heard in 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 make 150 grand, that's child support. That's not.

[A]

This, that's child support. That's not.

[C]

That's what I'm saying. I've heard of that.

[A]

That's normal. But half the 401k is normal. Half the tsp is normal. But you transfer 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're grieving your broken heart. And you wrote 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 life.