Postema v. Postema

Michigan Court of Appeals
189 Mich. App. 89, 471 N.W.2d 912 (1991)

ELI5:

Rule of Law:

An advanced degree obtained during a marriage through the concerted effort of both spouses is a marital asset, giving rise to an equitable claim for the non-student spouse for their contributions towards its attainment, which is to be compensated through property distribution rather than alimony.

Facts:

Plaintiff and Defendant married on August 11, 1984.
The parties agreed that Defendant would attend law school while Plaintiff, a licensed practical nurse, would postpone her own education and work full-time to support them.
From September 1984 to May 1987, the parties lived in Detroit while Defendant attended law school.
During this period, Plaintiff worked as a nurse, earning approximately $53,000, and assumed primary responsibility for all household duties.
Defendant worked part-time as a law clerk, earning about $12,000, while his education was primarily financed by $15,000 in student loans.
After Defendant graduated in May 1987 and began working as an attorney, Plaintiff resumed her nursing classes in September 1987.
The parties separated on November 7, 1987, after Defendant informed Plaintiff he had met another woman.

Procedural Posture:

Plaintiff filed for divorce from Defendant in a Michigan trial court.
The trial court entered a judgment of divorce on February 3, 1989, which included a property distribution.
In its distribution, the trial court found Defendant's law degree to be a marital asset, valued it at $80,000, and awarded Plaintiff $32,000 as her share.
Defendant, the appellant, appealed the trial court's property distribution to the Michigan Court of Appeals.
Plaintiff, the appellee, filed a cross-appeal, also challenging the trial court's valuation of the law degree.

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Issue:

Is an advanced degree, obtained during a marriage through the concerted effort of both spouses, a marital asset subject to equitable distribution upon divorce?

Opinions:

Majority - Maher, P.J.

Yes. Where an advanced degree is the end product of a concerted family effort involving mutual sacrifice, it constitutes a marital asset subject to distribution, in which the non-student spouse has an equitable claim. The court determined that fairness requires compensation for the non-student spouse who sacrifices their own career and financial support for the other's education, based on a shared plan that both would benefit from the resulting degree. The court rejected treating the degree as a factor for alimony, arguing that alimony is for support and can be unfairly terminated upon remarriage, whereas this compensation is a right earned through past contributions. The court also held that whether a degree is technically 'property' is less important than finding an equitable solution, and in an equitable distribution jurisdiction, the facts can give rise to a divisible claim even for an intangible asset like a degree.

Analysis:

This decision resolves a conflict among Michigan appellate panels by definitively characterizing an advanced professional degree earned through joint spousal effort as a marital asset. By rejecting the alimony approach, the court establishes a more secure and vested right for the supporting spouse, one that is not contingent on need or future marital status. Furthermore, the court pivots the valuation method away from speculative future earnings (the 'present value' method) toward a restitutionary framework, focusing on compensating the supporting spouse for their actual contributions and sacrifices. This sets a precedent that simplifies valuation and emphasizes equity by reimbursing past efforts rather than dividing future potential.

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