In Re Marriage of Lundberg

318 N.W.2d 918, 107 Wis. 2d 1, 1982 Wisc. LEXIS 2548
CourtWisconsin Supreme Court
DecidedApril 27, 1982
Docket80-1743
StatusPublished
Cited by53 cases

This text of 318 N.W.2d 918 (In Re Marriage of Lundberg) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Marriage of Lundberg, 318 N.W.2d 918, 107 Wis. 2d 1, 1982 Wisc. LEXIS 2548 (Wis. 1982).

Opinions

BEILFUSS, C.J.

This is a review of a decision of the court of appeals which reversed the trial court’s award of compensation in a divorce case to a woman who had supported her husband while he obtained a medical education.

The petitioner, Judy Mae Lundberg, and the respondent, David A. Lundberg, were married on December 19, 1970. Both parties were in college at the time of the marriage. Judy was in graduate school studying for a Master’s Degree in English. David was in his last year of college, pursuing a Bachelor’s Degree in Biology. Judy received her Master’s Degree in June of 1972. She took a position as a high school teacher in Rochester, Minnesota, beginning in September, 1972, and was employed there through June of 1976. After graduation from college, David attended graduate school in biology for one year. In the fall of 1972 he entered the Mayo Medical School in Rochester. David received his M.D. degree in June of 1976.

[4]*4He was not employed while in medical school. The trial court found that his total financial contribution during medical school was $6,605. This consisted of various benefits and loans. His tuition and lab fees for medical school totaled $6,955. Judy’s earnings from her teaching position amounted to $45,981 during the four years he spent in medical school. The parties’ financial contributions prior to medical school were roughly equal. David earned $7,685 and Judy earned $6,200.

After David graduated from medical school they moved to Holmen, Wisconsin. David began a three-year medical residency in La Crosse, Wisconsin. During this period he earned a total of $39,888. Judy taught school in Holmen, earning $35,948 from 1976 through 1979. In July of 1979 David completed his residency. He was certified as a family practitioner and joined a partnership with another doctor in Zumbrota, Minnesota. His income at the time of trial was $960 every two weeks. He estimated that his annual income at the end of his first year of practice would be between $35,000 and $40,000 for a four-day work week. Judy continued to teach in Holmen, earning $13,360 per year.

On August 10, 1978, Judy filed a petition for divorce. The trial occurred on November 27, 1979, and a judgment of divorce was entered on August 13, 1980. The trial court, Circuit Judge Eugene A. Toepel, awarded to each party the assets in their possession. The court found the assets in David’s possession to have a value of $13,585, while those awarded to Judy were valued at $7,032, plus her interest in two pension funds worth $3,464.87. Added together, her total assets were valued at $10,496.87. Judy requested compensation for her support of David while he was in medical school. Over the entire length of the marriage Judy earned $88,128.50, while David earned $54,178.32. Most importantly, during the crucial years while David was in medical school, [5]*5Judy supported both of them on her earnings. In addition, the trial court found that Judy rendered substantial emotional support to David and performed virtually all the household duties during the marriage. She also maintained a large garden, and canned the produce, baked on weekends, and cared for a flock of chickens, all of which helped reduce the family’s expenses.

At trial Judy called an economist to establish the value of her investment in David’s medical degree. The economist established two methods of valuing her investment. The first method compared the average earnings of family practitioners with the average earnings of white males with five or more years of college education. The difference between these two figures was $24,976 per year. Over an assumed 25-year working period this difference amounted to $624,400. This amount was then reduced to present value, using both a 10 percent and a 12 percent discount rate. David’s foregone earnings that he could have made if he had worked instead of going to medical school were deducted from each figure, along with the additional taxes he would owe as a result of his increased income. From these rather complex calculations, the economist found the net present value of David’s additional income that he will earn as a result of his degree to be between $110,837 and $132,402, depending on which discount rate is used. The trial court found that these present value figures were established by credible economic evidence.

The second method used by the economist to value Judy’s investment in her husband’s education was based on the amounts she spent to support him. The economist calculated that she contributed $25,510 to David’s support while he was in medical school. If she had invested this money at a five percent rate of return, by 1980 she would have realized $33,077.

[6]*6In demanding compensation for her support of her husband, Judy did not use any of the economist’s figures. Instead, she came up with an estimate that the value of her support was $25,000, and requested that amount. David estimated that her contributions had been worth $20,207.39, and was willing to pay her that amount.

The trial court awarded her $25,000. The court seemed to phrase this award in terms of maintenance. The court wrote that, “there is ample equitable justification for the $25,000.00 award as maintenance.” “But” the court went on to say, “whether it is called maintenance or property division, the amount of this award is fair. In fact, much more could be justified. Any less would be inequitable to Judy Lundberg.” The court made the $25,000 award payable at the rate of $300 per month from August 15, 1980 to August 14, 1981; $500 per month from August 15, 1981 through August 14, 1982; and the balance of the $25,000, plus interest at the rate of eight percent, due on or before August 15, 1982.

The court of appeals reversed on the basis of its holding in DeWitt v. DeWitt, 98 Wis. 2d 44, 296 N.W.2d 761, (Ct. App. 1980). Because it found no authority in Wisconsin for “gross alimony” awards, the court of appeals held that the award in this case must be treated as part of the property division. In DeWitt, the court held that an educational degree was not an asset that can be valued, included as marital property, and divided between the parties. The court of appeals did note that it was proper for the trial court to take Judy’s contribution to David’s education into account when dividing the marital property. However it concluded that it was not proper to award her a return on her investment in her husband’s degree. The $25,000 award was also found to be improper because it exceeded the total value of the parties’ assets. Such a property division, which can only be satisfied by dividing post-divorce earnings, was not approved in DeWitt.

[7]*7Judy Lundberg petitioned for review of the court of appeal’s decision and this court granted the petition.

The problem posed by this case and the similar case of Roberto v. Brown, 107 Wis. 2d 17, 318 N.W.2d 358 (1982), which we also decide today, is how to fairly compensate a person who has supported his or her spouse while the spouse was in school, when the marriage breaks up before the family is able to realize the benefits from the spouse’s education. The situation posed by this case seems to be a not uncommon one. The parties here have not accumulated significant marital property. They own no real estate. The efforts of both spouses have been directed towards earning David’s medical degree.

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Bluebook (online)
318 N.W.2d 918, 107 Wis. 2d 1, 1982 Wisc. LEXIS 2548, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-marriage-of-lundberg-wis-1982.