At The Money: The Finances of Divorce

Summary of At The Money: The Finances of Divorce

by Bloomberg

15m•February 4, 2026
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Overview of At The Money: The Finances of Divorce

This Bloomberg episode (host Barry Ritholtz) features Patrick Kilbane of Ullman Wealth Partners, who leads their Divorce Advisory Group. The conversation focuses on the financial realities and pitfalls of divorce, with practical guidance for immediate triage, asset valuation and division, tax and retirement-account issues, cash-flow planning, and recommended documents and professionals to involve.

Key takeaways

  • First step: triage — use the “WIN” approach (What’s Important Now) to identify immediate needs (cash flow, housing, child custody).
  • Don’t rush into agreements without full information; many early mistakes come from negotiating before understanding assets or legal rights.
  • Treat assets in categorized “buckets” so you compare apples to apples (cash, retirement, property, businesses, trusts).
  • Emotional motivations (e.g., keeping the house) must be separated from financial consequences; clarify motivations before negotiating.
  • Taxes can dramatically change settlement math; consider filing-status change, capital gains exclusions, and tax treatment of each asset.
  • Retirement accounts require special handling (QDROs for ERISA plans); government plans may have different rules.
  • Private businesses require professional valuation and analysis of enterprise vs. personal goodwill — sometimes the business value without the owner is the marital asset.
  • Early cash-flow stability matters: build larger emergency funds and consider transitional support (temporary alimony) to ease the first year.
  • Complete and accurate financial disclosures (financial affidavit/net worth statement) materially improve outcomes and negotiation clarity.

Topics discussed (details)

  • Initial triage and client mindset

    • Many coming into divorce are traumatized and in “fog”; advisors should slow down and triage basic needs first (housing, immediate cash).
    • Reassure clients and act as a “Sherpa” through the process.

  • Common early mistakes

    • Informal agreements reached without full knowledge of assets or rights.
    • Underestimating tax, liquidity, and longer-term cash-flow impacts.

  • Housing decisions

    • Determine whether keeping the house is emotional (comfort, kids, neighborhood) or financial (investment).
    • Tax rules: married couples may exclude up to $500k gain on a primary residence (single filer $250k); state taxes and basis matter.

  • Taxes and changing tax status

    • Divorce may change filing status, create imputed income, alter tax brackets.
    • Early withdrawals from retirement accounts before 59½ may require IRS Rule 72T planning; state rules vary.

  • Retirement accounts and QDROs

    • QDRO = Qualified Domestic Relations Order, used to divide ERISA-covered retirement plans.
    • Government/public plans may not accept QDROs; need plan-specific summary plan descriptions to determine rules.
    • Divide qualified vs. non-qualified accounts carefully and evaluate tax consequences.

  • Valuing private businesses and illiquid assets

    • Use a business appraiser/valuation expert.
    • Divorce analysis often separates enterprise goodwill from personal goodwill; the “value without the owner” may be the marital asset.
    • Prior offers or headline valuations may not reflect what’s divisible in the divorce context.

  • Cash flow planning post-separation

    • Build larger emergency savings for the transition year.
    • Consider temporary support (alimony) to cover learning curves and prevent immediate financial distress.

  • Essential document: financial affidavit / net worth statement

    • Thorough, accurate disclosure of income, expenses, assets, liabilities is crucial.
    • It’s okay to update as discovery provides more information; initial accuracy reduces stress and improves negotiation.

Practical action checklist (for someone starting the divorce process)

  • Pause and triage: identify immediate needs (housing, cash, custody).
  • Assemble a records folder: bank statements, tax returns, retirement statements, brokerage statements, business docs, mortgage/title, trust/estate docs.
  • Complete the required financial affidavit/net worth statement as accurately as possible; note unknowns with footnotes.
  • Hire key professionals early:
    • Divorce-experienced financial advisor or planner
    • Attorney (and possibly a mediator if appropriate)
    • Tax advisor
    • Business valuation expert (if applicable)
  • For retirement assets: obtain summary plan descriptions and determine QDRO requirements or alternative division mechanisms.
  • Rebuild emergency savings and prepare a realistic first-year budget.
  • Clarify motivations behind major decisions (e.g., who keeps the house) before negotiating.

Notable quotes

  • “What’s Important Now” (WIN) — framework for immediate triage.
  • “Don’t compare apples to giraffes — compare apples to apples.” — on grouping assets.
  • “Divorce is really a financial or tax problem disguised in a divorce costume.” — encapsulates the episode’s central perspective.

Final recommendation

Take the financial side of divorce seriously: slow down, get full disclosure, involve the right specialists (valuation, tax, legal), and secure immediate cash-flow stability. Thoughtful, asset-by-asset analysis and clear documentation materially improve outcomes.