In re Marriage of Studyvin
1989 WL 130698, 779 S.W.2d 338, 1989 Mo. App. LEXIS 1552 (1989)
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Rule of Law:
Missouri law holds that while an enhanced earning capacity from a professional degree is not considered marital property subject to division, a spouse's contributions to its acquisition must be factored into the court's determination of equitable maintenance.
Facts:
- The parties married on July 5, 1976.
- At the time of marriage, Respondent was employed as a pharmacist, and Appellant was unemployed, having attended college for one year and trained as a dental assistant.
- Shortly after the marriage, Respondent was accepted by a medical school and began in the summer of 1977, finishing classroom education in 1981 and working as a medical resident until 1984.
- During Respondent’s medical education and residency, Appellant was employed, relieved Respondent of household responsibilities, and made other sacrifices, while Respondent also worked, used personal funds, and borrowed through student loans.
- Since the end of his residency, Respondent worked as an emergency room physician, earning approximately $90,000 a year.
- In late winter or spring of 1986, Respondent became romantically involved with one of his employees.
- In July 1986, Respondent moved out of the house he occupied with Appellant and their two children.
- The parties acquired marital property, but it had little equity or value.
Procedural Posture:
- The parties' marriage was dissolved, and a judgment was entered by a trial court (court of first instance) on August 11, 1988.
- The trial court's judgment included orders pertaining to property division, maintenance, child support, and attorney's fees.
- Appellant (wife) appealed the trial court's judgment to the Missouri Court of Appeals, challenging the orders regarding property division, maintenance, child support, and attorney's fees.
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Issue:
Is an enhanced earning capacity from a spouse's professional medical training, to which the other spouse contributed, a marital asset for which the contributing spouse is entitled to an accounting upon dissolution of marriage?
Opinions:
Majority - PREWITT, Presiding Judge
No, an enhanced earning capacity from a spouse's professional medical training, even when the other spouse contributed significantly, is not considered a marital asset or property in Missouri for which the contributing spouse is entitled to a fixed percentage or accounting. The court reaffirmed that Missouri courts, following precedents like Scott v. Scott and In re Marriage of Dusing, do not classify a professional education degree as "marital property." While acknowledging the appeal of such a classification, especially when one spouse sacrifices their own education or when the educated spouse benefits greatly and then leaves the marriage, the court reiterated that trial courts maintain flexibility. The contributing spouse's efforts (working, relieving household duties, making sacrifices) and the enhanced earning capacity of the educated spouse are "to be taken into account" when striking an equitable balance, particularly in determining maintenance awards. The court found the initial maintenance award inadequate given the appellant's contributions and stated desire to return to college, increasing it for a period to allow for further education. Additionally, the court reversed the trial court's grant of the income tax dependency exemption for the children to the respondent, acknowledging that the tax code provisions likely favored the appellant.
Analysis:
This case reaffirms Missouri's consistent stance that a professional degree or the enhanced earning capacity it confers is not divisible marital property, distinguishing it from jurisdictions that might treat it as such. It emphasizes a flexible approach, allowing courts to consider contributions to a spouse's education when determining maintenance or property division to achieve an equitable result without attempting to value the degree itself. The modification of maintenance highlights the court's willingness to use ongoing financial support as a tool to compensate the contributing spouse and enable their own future education, rather than directly dividing hypothetical future earnings.
