What Your Attorney Won't Tell You About the Money

Your attorney is essential. Let me say that clearly. If you’re going through a divorce, you need legal counsel. But there’s a gap that most people don’t see until it’s too late.

Attorneys handle law. They negotiate terms, file motions, and represent you in court. That’s what they’re trained for. What they’re not trained for is building financial models, tracing retirement contributions, or calculating whether the settlement you’re about to sign will actually support the life you need to live five years from now.

The gap nobody talks about

Two-thirds of divorce is about money. But the financial side often gets handled by people who aren’t trained in finance. Your attorney looks at the legal framework. Your accountant looks at this year’s taxes. Nobody is looking at the full financial picture and asking, “Does this actually work for your real life?”

That’s the gap a Certified Divorce Financial Analyst fills.

What “fair” actually means

Here’s an example I see constantly. A proposed settlement splits assets 50/50. On paper, it looks clean. Both sides get $500,000.

But one side gets a retirement account. The other gets home equity. Those two assets are not the same.

• The retirement account is taxed when you withdraw it. Depending on your tax bracket, that $500,000 could be worth $350,000 or less in real dollars.
• The house ties up your cash in an illiquid asset. You still have to pay the mortgage, property taxes, insurance, and maintenance. And if you need to sell, you’re at the mercy of the market.

Same number on paper. Completely different financial lives.

What I look for

When I sit down with someone, I’m looking at how their assets will actually function over time. Not just what they’re worth today, but what they’ll be worth after taxes, penalties, and real-life expenses.

Some of the things I check that often get missed:

• Tax basis on retirement accounts. A pre-tax 401(k) and a Roth IRA are not interchangeable, even at the same balance.
• Depreciation recapture on rental property. This can create a five-figure tax bill nobody mentioned.
• Maintenance (alimony) planning. Support doesn’t last forever. I help you plan for what your financial life looks like when it transitions, so there are no surprises.
• Executive compensation packages. Stock options, RSUs, deferred comp. The money hiding in plain sight that nobody slows down to examine.

What you can do right now

If you’re in the middle of a divorce or heading toward one, here are three things you can do today:

1. Listen to The Private Sessions. 17 episodes where I walk you through every major financial issue in divorce, one on one. The first three are free. Start listening here.

2. Start gathering documents. Income, expenses, assets, liabilities, insurance. The Private Advisory Financial Guide walks you through exactly what to look for and where to find it.

3. Tell me about your situation. If something doesn’t feel right about what you’re being offered, trust that feeling. Fill out the contact form and I’ll tell you if I can help.

You don’t have to have it figured out. You just have to start asking better questions.