Marriage of Roberts v. Roberts
1996 Ind. App. LEXIS 1144, 670 N.E.2d 72, 1996 WL 488051 (1996)
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Rule of Law:
Under Indiana law, a professional degree earned during a marriage is not a marital asset subject to division upon divorce. However, the enhanced earning capacity created by the degree is a factor the court may consider when dividing the actual marital estate.
Facts:
- Leigh Anne Roberts and Matthew Francis Roberts were married on June 24, 1989.
- In the fall of 1990, Matthew quit his job, where he earned $30,000 per year, to attend law school full-time.
- The couple agreed that Leigh Anne would continue working to support them financially while Matthew pursued his degree.
- Leigh Anne also assumed primary responsibility for running the household to allow Matthew to focus on his studies.
- Two months before Matthew's graduation from law school, the couple separated.
- After graduating third in his class, Matthew accepted an associate position with a large law firm in Chicago.
- Matthew filed for dissolution of the marriage on August 4, 1993.
Procedural Posture:
- Matthew Francis Roberts filed a petition for dissolution of marriage against Leigh Anne Roberts in an Indiana trial court.
- The trial court entered a judgment of divorce, which included a property distribution order.
- In its order, the trial court ruled that Matthew's law degree was not a marital asset but included his $22,500 in student loans as marital debt, for which Matthew was solely responsible.
- The trial court found that the presumption of an equal property distribution was rebutted and awarded Leigh Anne a significantly larger share of the net marital assets.
- Leigh Anne Roberts, as appellant, appealed the trial court's judgment to the Indiana Court of Appeals.
- Matthew Francis Roberts, as appellee, filed a cross-appeal on other issues.
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Issue:
Is a professional degree earned by one spouse during a marriage considered a marital asset subject to division upon divorce?
Opinions:
Majority - Garrard, Judge.
No, a professional degree is not a marital asset subject to division. Citing precedent from Prenatt v. Stevens, the court reasoned that a degree is an intangible asset, personal to the holder, and lacks the common characteristics of property. Its value is speculative, as it depends on the holder's future choices, abilities, and employment opportunities. Valuing a degree based on future earning capacity would result in an award beyond the actual physical assets of the marriage, which is improper under Indiana law except for specific maintenance awards. However, the court clarified that the enhanced earning ability of the degree-holding spouse is a valid factor to consider when determining how to distribute the actual marital property, potentially justifying a deviation from a 50/50 split.
Analysis:
This decision reinforces the majority rule in American jurisdictions that a professional degree is not considered divisible marital property. It highlights the 'supporting spouse' dilemma, where one spouse makes significant financial and personal sacrifices for the other's education, only for the marriage to dissolve before the economic benefits are realized. The court's solution is not to classify the degree as property but to use the resulting enhanced earning capacity as a justification for an unequal distribution of the existing marital estate in favor of the supporting spouse. This places the burden on the legislature to create any alternative remedies, such as direct reimbursement for educational contributions.
