Federal Divorce Specialist
Federal retirement, TSP division, real estate — DC's equitable distribution requires expertise. This guide shows you exactly what you're entitled to.
Leanne Ozaine, CDFA® & CFP® | Specializing in federal and gray divorce
Turn Panic Into Power — $97If you're over 50 and divorcing in Washington DC, you're likely navigating one of the most financially complex divorce scenarios in America. Your divorce isn't about child custody—your children are grown and independent. Instead, you're dividing decades of federal service pensions (FERS/CSRS), Georgetown or Capitol Hill real estate worth $1M-$8M+, K Street lobbying income, white-shoe law firm partnerships, or think tank leadership compensation—all while facing America's HIGHEST state income tax (4-10.75%).
The DC gray divorce reality: You've built extraordinary wealth through federal government service, lobbying, law, or policy leadership. Your Georgetown rowhouse purchased for $400K in 1995 is now worth $3M. Your CSRS pension will pay $5,500/month for life. Your law firm partnership generates $1.2M annually. But now you're facing divorce, and the financial complexity is overwhelming—especially if you've never personally managed household finances.
What makes Washington DC unique for gray divorce: Highest concentration of federal employees in America (20-40 year FERS/CSRS pensions), K Street lobbying firms with million-dollar compensation, white-shoe law firm partnerships, prestigious think tank leadership, Georgetown/Dupont Circle/Capitol Hill ultra-prime real estate ($1.5M-$8M+ rowhouses), and the nation's HIGHEST state income tax (10.75% top rate).
FERS. CSRS. TSP. COAP. You've heard these acronyms for years. You know they're valuable.
But do you actually understand what they mean for your divorce? What's the coverture fraction for your share of the pension? What about the survivor benefit — do you forfeit it if you don't claim it in the settlement? How much of that $850,000 TSP is legally yours?
Your federal employee spouse has lived with these benefits for 25+ years. They understand COAP requirements, vesting schedules, and tax implications.
You're seeing these documents for the first time — while negotiating a settlement that could be worth $1-2 million.
Federal compensation isn't magic. It's complicated — but complicated has solutions. You need someone who can decode the pension statements, translate the TSP allocations, and show you exactly what's yours under DC's equitable distribution law.
The difference between understanding federal benefits and not? It can easily be $200,000-$400,000 in your final settlement.
Washington DC has more federal employees than any metro area in America—and gray divorce almost always involves substantial federal pensions.
Typical DC gray divorce federal pension scenario:
Critical federal pension division issues:
For those new to finances: A federal pension is a guaranteed monthly paycheck for life after retirement. Unlike a 401(k) you control, it's managed by the government. But it can be divided in divorce—and that division requires specialized legal and financial expertise to get right.
Price range: $1.5M-$8M+ (historic rowhouses), $800K-$4M+ (waterfront condos)
Gray divorce profile: DC's most prestigious address. Federal executives, senior law firm partners, top lobbyists, diplomats, university leadership (Georgetown University). Historic cobblestone streets, Federalist architecture, ultra-prime location on Potomac waterfront.
Typical divorce assets: $2M-$5M Georgetown rowhouse, $800K-$2M retirement accounts, law firm partnership or lobbying firm equity, federal pensions (if dual federal career household).
Financial complexity: Deciding whether to sell the Georgetown home or have one spouse buy out the other. Many couples have deep emotional attachment to these historic homes but can't afford to keep them in divorce.
Price range: $1M-$3M+ (renovated rowhouses), $600K-$2M+ (luxury condos)
Gray divorce profile: Urban sophistication meets embassy district prestige. Think tank leadership (Brookings, Carnegie Endowment), senior federal employees, international organization executives (IMF, World Bank), non-profit leadership, foreign service officers.
Typical divorce assets: $1.5M-$2.5M rowhouse or luxury condo, FERS/CSRS pensions from 25-35 year careers, TSP accounts $500K-$1.2M, think tank deferred compensation, international organization pensions.
Walkability premium: Dupont Circle's urban lifestyle commands premium pricing—restaurants, culture, Metro access. Gray divorce couples often want to stay in the neighborhood but face affordability challenges post-divorce.
Price range: $900K-$2.5M+ (historic rowhouses near Capitol)
Gray divorce profile: Congressional staffers who became chiefs of staff, federal agency leadership, Supreme Court employees, Library of Congress scholars, political consultants, some Members of Congress themselves.
Typical divorce assets: $1.2M-$2M Capitol Hill rowhouse, federal pensions (20-35 years), TSP $400K-$900K, political consulting income (highly variable), some deferred compensation.
Unique consideration: Political career income can be highly cyclical—booming during campaign years, lean otherwise. Calculating "income" for alimony purposes requires sophisticated analysis of multi-year earnings patterns.
Price range: $800K-$2M+ (renovated rowhouses), $500K-$1.2M (condos)
Gray divorce profile: Revitalized neighborhood attracting younger federal executives, tech professionals (growing DC tech scene), federal contractors, progressive non-profit leadership, urban professionals.
Typical divorce assets: $900K-$1.5M rowhouse, federal contractor stock options/RSUs, FERS pensions (15-25 years), 401(k) $300K-$700K, some startup equity (DC tech scene growing).
Appreciation story: Many couples bought in Logan Circle/Shaw 15-20 years ago for $300K-$500K. Those homes are now worth $1M-$2M. That appreciation is marital property subject to division.
Price range: $1M-$2.5M+ (single-family homes), $600K-$1.5M (condos)
Gray divorce profile: Upper Northwest family-friendly enclave. Federal executives with grown children, World Bank/IMF leadership, Smithsonian curators, National Zoo professionals, think tank senior scholars, embassy district professionals.
Typical divorce assets: $1.3M-$2M single-family home (often 3-4 bedrooms), FERS/CSRS pensions from 30+ year careers, TSP/401(k) $600K-$1.5M, international organization pensions, some rental property investments.
Family transition: These neighborhoods attracted families for excellent schools (private schools like Sidwell Friends nearby). Now children are grown, and gray divorce couples face empty-nest home decisions—downsize or stay?
Price range: $1.5M-$4M+ (large single-family homes)
Gray divorce profile: Ultra-affluent enclave on DC-Maryland border. Senior law firm partners, top lobbying firm principals, federal contractor executives, think tank presidents, broadcasting executives (NPR/PBS leadership), private equity (growing DC presence).
Typical divorce assets: $2M-$4M single-family estate, law firm partnership worth $500K-$2M+ annually, lobbying firm equity, substantial investment portfolios $1M-$5M+, some federal pensions (if dual career), extensive stock portfolios.
High-net-worth complexity: These divorces involve business valuations, deferred compensation, partnership interest division, trust and estate planning, and sophisticated tax planning. Expert financial guidance is essential.
Washington DC is America's lobbying capital, and K Street firms pay extraordinary compensation—creating unique gray divorce challenges:
Top lobbying compensation structure:
Major DC lobbying firms:
Gray divorce lobbying complications:
Valuation challenge: How much of the lobbying income is due to marital partnership support vs. the individual's personal reputation? This distinction dramatically affects property division vs. alimony calculations.
DC concentrates elite law firms serving government, regulatory, and corporate clients—and equity partnerships are worth extraordinary sums:
Equity partner compensation structure:
Major DC law firms (BigLaw):
Partnership interest division challenges:
Income vs. asset tradeoff: High-earning lawyers often negotiate: "I'll give you more property upfront in exchange for lower/no alimony." This requires sophisticated financial modeling to ensure the non-attorney spouse isn't shortchanged.
DC concentrates America's most prestigious think tanks, and senior leadership earns substantial compensation:
Think tank compensation ranges:
Major DC think tanks:
Additional income streams:
Retirement benefits:
Gray divorce considerations:
District of Columbia has the highest state income tax in America, and this dramatically affects divorce financial planning:
DC income tax brackets (2025):
Compare to neighboring jurisdictions:
Retirement withdrawal tax impact:
If you're withdrawing $100K annually from retirement accounts (401(k), TSP, IRA) in DC vs. Virginia:
Post-divorce relocation consideration:
Many DC gray divorce clients ask: "Should I move to Virginia or Maryland after divorce to save on taxes?" This is a complex decision involving:
Alimony tax implications:
If you're divorcing a federal employee, health insurance continuation is CRITICAL—and could be worth hundreds of thousands of dollars over your lifetime:
FEHB (Federal Employees Health Benefits Program):
Spouse Equity provision (lifetime FEHB for ex-spouses):
You can continue FEHB coverage for LIFE after divorce IF you meet ALL three requirements:
Example qualifying scenario:
Example NON-qualifying scenario:
Strategic divorce timing consideration:
If you're at 28-29 years of marriage/service overlap, waiting even ONE more year to finalize divorce could secure lifetime health insurance worth $200K-$400K+ over retirement. This is an ENORMOUS financial consideration that must be weighed against emotional/practical divorce timing.
What if you don't qualify for Spouse Equity?
Negotiate for it: If you're close to 30 years but don't quite qualify, some couples negotiate property division to compensate for the lack of FEHB continuation. This requires calculating the actuarial value of lifetime health insurance.
The 5-step system that shows you what you'll actually live on, so you stop guessing and start knowing.
Calculate your real post-divorce income — including your share of federal pensions, TSP, and spousal support — so you negotiate from facts, not fear.
Document gathering checklists tell you exactly what to bring to your attorney — so you walk in prepared, not panicked.
Map out your real expenses as a single person — before you fight for something you can't actually maintain on DC's cost of living.
The asset identification system helps you find accounts and property you might not even know exist — including deferred comp and consulting income.
22-page guide + video tutorials + checklists + templates
$97
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Get the Clarity You Need — $97DC's combination of federal pensions, highest state taxes, K Street wealth, and Georgetown real estate demands sophisticated financial planning for 50+ divorces.
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