Eido Walny, founder of Walny Legal Group LLC, appeared on the Empire Sports Alliance podcast to discuss the financial and legal challenges facing professional athletes, particularly around divorce, asset protection, and estate planning. In conversation with hosts Ronnie and Eric, Walny explained why athletes face dramatically higher divorce rates and how early planning can protect their careers and earnings.
Walny opened with a stark statistic: while the general U.S. population has a first-marriage divorce rate in the low-to-mid 40% range, professional athletes face a divorce rate around 70%. Even more concerning, approximately half of those divorces occur within the first year of retirement from sports. The condensed earning timeline of athletes—typically three to five years—makes divorce financially devastating.
Throughout the discussion, Walny outlined key strategies for athlete financial protection:
Starting Protection Early
Athletes should begin planning extremely early in their careers, even before significant earnings begin. With NIL money now available to younger athletes, financial advisors, agents, and potential romantic partners appear earlier than ever. Building a system of trusted advisors—parents, financial advisors, accountants, and lawyers—is essential before wealth accumulates.
The Critical Role of Prenuptial Agreements
Prenuptial agreements emerged as essential protection. The agreements define asset ownership and future earnings treatment, but must be properly executed with both parties having attorneys and full financial disclosure. Critically, couples must actually live according to the agreement’s terms—not file it away until divorce becomes imminent.
Understanding Marital Property Laws
State laws can surprise athletes. Walny used Wisconsin as an example, where paychecks are equally owned by both spouses under marital property law, regardless of whose name appears on the check. When assets divide in divorce, the split is typically 50-50, not weighted toward the breadwinner, because the spouse’s contributions—childcare, household management, business affairs—have recognized value.
Asset Protection Through Jurisdiction Planning
Athletes can establish trusts in jurisdictions with favorable asset protection laws—Nevada, South Dakota, Alaska, Delaware—regardless of where they live. This strategic planning provides protection comparable to insurance premiums.
Estate Planning as Foundation
Only 16% of Americans have current, up-to-date estate plans, and athletes lag even further behind. Walny emphasized this isn’t about death planning—it’s about creating a solid financial foundation for the entire advisory team to build upon effectively.
Tax Considerations and Strategic Decisions
State tax laws create competitive advantages for teams in no-income-tax states. Athletes are taxed in every state where they perform, making strategic location decisions potentially worth hundreds of thousands of dollars for high earners.
Walny’s central message: assemble a comprehensive financial services team early—not just investment advisors and accountants, but estate planning attorneys and insurance agents who understand athlete-specific challenges. The condensed earning timeline and elevated divorce risk make early protection essential.
Full episode available at:
Empire Sports Alliance – Eido Walny on Asset Protection for Athletes