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Elkus v. Elkus

NY: Appellate Div., 1st Dept.
169 AD 2d 134, 572 NYS 2d 901 (1991)
ELI5:

Rule of Law:

The enhanced value of a spouse's career and celebrity status is marital property subject to equitable distribution to the extent that it is a product of the marital partnership and the other spouse's direct or indirect contributions.


Facts:

  • Frederica von Stade Elkus, an opera singer, married Peter Elkus on February 9, 1973, at the beginning of her career.
  • In the first year of their marriage, Frederica earned $2,250.
  • During their 17-year marriage, Frederica became a celebrated international opera singer and recording artist.
  • Peter, who was also a singer and teacher, claims he sacrificed his own career to support Frederica's.
  • Peter traveled with Frederica, critiqued her performances, served as her voice coach for 10 years, and photographed her for album covers and articles.
  • Peter also took on domestic responsibilities, including caring for their two children, to enable Frederica's career advancement.
  • By 1989, Frederica's annual income had increased to $621,878.

Procedural Posture:

  • Frederica von Stade Elkus (plaintiff) and Peter Elkus (defendant) filed for divorce in the Supreme Court of New York County, the state's trial court of general jurisdiction.
  • The parties stipulated to a divorce and joint custody, leaving only economic issues to be resolved.
  • The plaintiff moved for a pre-trial order to determine that her career and celebrity status were not marital property.
  • The Supreme Court (trial court) granted the plaintiff's motion, ruling her career was not marital property.
  • The defendant, Peter Elkus, appealed this order to the Appellate Division of the Supreme Court.

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Issue:

Does the enhanced value of a person's career and celebrity status, resulting from the contributions of their spouse during the marriage, constitute marital property subject to equitable distribution?


Opinions:

Majority - Rosenberger, J.

Yes, the enhanced value of a spouse's career and celebrity status constitutes marital property to the extent it resulted from the other spouse's contributions. New York's Domestic Relations Law broadly defines marital property to reflect the 'economic partnership' concept of marriage, including things of value that fall outside traditional property concepts. The court extended the reasoning of O'Brien v. O'Brien, which held a medical license to be marital property, arguing there is no rational basis to distinguish between a license, a degree, or any other special skill that generates substantial income. The determinative factor is not the nature of the career itself (e.g., whether it is licensed), but the nature and extent of the non-titled spouse's contributions to the appreciation in its value. Since Peter Elkus's direct and indirect efforts contributed to the dramatic increase in the value of Frederica von Stade Elkus's career, that appreciation is a marital asset.



Analysis:

This decision significantly expands the definition of 'marital property' in New York beyond tangible assets and professional licenses. It establishes that intangible assets, such as celebrity status and enhanced earning capacity in artistic fields, are divisible upon divorce if their value increased due to the contributions of the other spouse. This precedent solidifies the 'economic partnership' theory of marriage, ensuring that a non-titled spouse's contributions to a partner's career success are recognized and compensated. The ruling opened the door for similar claims by the spouses of athletes, artists, and other professionals whose careers are not dependent on a formal license or degree.

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