"I think when I learned enough to understand what it was that I was really feeling ... I could either hide that, or I could acknowledge to the world that I was in fact a woman. And receive their acknowledgement back," Schroer says.
Schroer told his wife first, even hoping there might be a possibility they could stay together. But the couple decided to separate.
Schroer's marriage was over, but he was finding fulfillment for the first time. He began openly dressing as a woman and calling himself Diane. Schroer was retired at the time, and didn't have to break the news to Washington's top brass. But Schroer did begin telling his Special Forces buddies, including retired Lt. Colonel Dan Bernard.
"The way she explained it to me was by showing me some photos that had been taken of her as a woman in a business kind of setting, wearing makeup and with a big wig and women's clothes. ... And I didn't get mad and I didn't storm out," Bernard said.
"I explained to him about being transgendered and what that meant, and he sat back for a moment and said, 'You really had me scared. Wow, I thought you were going to tell me something bad.' ... It was a tremendous relief," Schroer recalls.
Now Schroer was confident enough to tell family, nervously breaking the news to Bill and Gary -- still dressed as David.
Even though the news was, and continues to be, difficult to accept, Gary Schroer said there was never a question in his mind about being supportive to his younger brother. "It's still tough. But support and acceptance are two different things," he said.
Schroer then began the long and painful process of becoming a woman, undergoing intense therapy and taking female hormones under medical supervision. He also started wearing makeup, and underwent extensive cosmetic surgery.
In 12 hours of surgery, Schroer said, doctors gave him "a scalp advance, a forehead revision, nose reconstruction, upper lip revision, jaw and chin reshaping, and a tracheal shave." In a tracheal shave, the surgeon reduces the cartilage in the throat to get rid of a masculine-looking Adam's apple.
The genital reassignment surgery would come later. But in the meantime, Schroer was already looking more feminine and beginning to envision a new relationship.
But Schroer wasn't envisioning a sexual relationship with any men. Schroer is interested in dating women. "I would say I am in fact a lesbian," she said.
Schroer's desire to be with women is not uncommon for transsexuals. Brown says gender identity and sexual preference are two entirely different things.
"If sex and gender were the same, then that would make no sense at all. Sexuality is who you're attracted to. Gender is who you are as a person, male or female. So, the surgery and the transition is all about matching the mind with the body. It has nothing to do with sexuality," Brown said.
While Schroer is grateful to have the acceptance of her family, she has encountered challenges in her public life. While still transitioning to become female, Schroer applied for, and was offered, a job as a terrorism analyst at the Library of Congress late last year.
Because she was still legally David Schroer, she did not reveal her plans to her prospective employer during the interview.