Postema v. Postema

Michigan Court of Appeals · Property

Propertydivorcemarital estateadvanced degreeequitable distributionadvanced degreelaw degreeconcerted family effort

Facts

When the parties married, they planned that defendant would attend law school and plaintiff would postpone her own nursing education and work full-time to support them. During defendant's three years in law school, plaintiff earned about $53,000, provided roughly eighty percent of the parties' support, and handled most household responsibilities, while defendant earned about $12,000 as a law clerk and financed most tuition through student loans. Defendant graduated, began work as an associate attorney, and the parties separated only a few months later. The trial court treated the law degree as a marital asset, valued it at $80,000, awarded plaintiff $32,000 as her share, and made defendant solely responsible for most student loans.

Issue

When an advanced degree is earned during marriage as the product of a concerted family effort, may the nonstudent spouse receive compensation through property division, and if so, how should that equitable claim be valued? The case also presented whether the trial court properly valued plaintiff's claim arising from defendant's law degree.

Rule

Where an advanced degree is the end product of a concerted family effort involving the mutual sacrifice, effort, and contribution of both spouses, a marital asset subject to distribution arises in the form of the nonstudent spouse's equitable claim regarding the degree. That claim is not based on support or on ownership of the degree itself; valuation must focus on compensating the nonstudent spouse for unrewarded sacrifices, efforts, and contributions, considering such factors as the length of the marriage after the degree was obtained, the sources and extent of support provided during schooling, and the overall property division.

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One of 10 multiple-choice questions for this case. Pick an answer to see why.

In Columbus, Ohio, Elena Ruiz and Marcus Bell married with a shared plan that Marcus would attend dental school while Elena delayed opening her catering business. During the four years of school, Elena worked full-time, paid most living expenses, handled nearly all household chores, and cared for Marcus's son from a prior relationship. The parties filed for divorce one month after Marcus graduated.

How should a court most likely treat Elena's claim relating to Marcus's degree?

Explanation. Where an advanced degree is the end product of a concerted family effort involving mutual sacrifice, effort, and contribution, the nonstudent spouse has an equitable claim that may be treated as a marital asset subject to distribution. The claim is not based on need for support, and it is not an ownership interest in the degree itself or its future earnings. Elena's financial support, household labor, and caregiving strongly indicate a concerted family effort. (Derived from Postema v. Postema (n.d.).)