In New York, the division of assets during a divorce can become particularly complex when one or both parties hold professional degrees. Professional degrees, such as those in law, medicine or business, represent significant investments of time, money, and effort. Unlike tangible assets, the value of a professional degree isn’t always straightforward to assess or divide.
New York is an equitable distribution state, meaning that property and assets acquired during the marriage are divided fairly, but not necessarily evenly. This principle extends to professional degrees and licenses, which are often considered marital assets subject to equitable distribution. Of course, you cannot give each divorcing spouse half of a professional degree, but the earning potential associated with a degree is a significant factor in determining the financial contributions and future earning capacities of both parties.
Courts can evaluate the contributions of both spouses to the acquisition and maintenance of the professional degree. This includes financial support, such as paying for tuition or living expenses, and non-financial contributions, such as providing emotional support and managing household responsibilities while one’s spouse went to class and studied. The extent of these contributions is assessed to determine if they should influence the division of assets.
If one spouse’s degree significantly enhances their individual earning potential, this could affect decisions on property division and alimony (known as maintenance under New York law. In cases where a professional degree substantially boosts one spouse’s earning capacity, the court may award a higher amount of maintenance to the lower-earning spouse to balance the disparity in future earning potential. The goal is to ensure that both parties can maintain a standard of living similar to what they enjoyed during the marriage.
Expert testimony might be used to assess the actual value of particular type of degree and the worth of a spouse’s contribution to the enhanced career prospects associated with that degree. For anyone whose divorce might involve a determination regarding a degree earned during their marriage or another complex asset division matter, hiring a qualified attorney is essential.
Bryan L. Salamone & Associates, P.C. is the Long Island divorce leader. We advise clients throughout Nassau and Suffolk counties regarding the distribution of professional degrees and other marital assets that might not seem easily divisible. For a consultation to discuss your particular case, please call 631-388-6009 or contact us online.