Thomas v. Thomas

417 N.W.2d 563, 164 Mich. App. 618
CourtMichigan Court of Appeals
DecidedDecember 7, 1987
DocketDocket 89637
StatusPublished
Cited by12 cases

This text of 417 N.W.2d 563 (Thomas v. Thomas) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thomas v. Thomas, 417 N.W.2d 563, 164 Mich. App. 618 (Mich. Ct. App. 1987).

Opinion

D. E. Holbrook, Jr.,

J. In this appeal from divorce proceedings, the primary issue presented is the proper valuation of a law degree and license to practice law as marital property for the purpose of effecting an equitable distribution to the nonstudent spouse in the aftermath of the dissolution of the marriage. In a prior appeal from the same proceedings, another panel of this Court reversed the trial court’s determination that the degree had no intrinsic value and remanded for evaluation of the degree. Thomas v Thomas, 131 Mich App 830; 346 NW2d 595 (1984). The Supreme Court reversed the decision of this Court on the issue of alimony, but denied leave to appeal with respect to this Court’s holding that the degree was a marital asset. Thomas v Thomas, 419 Mich 942; 355 NW2d 617 (1984). On remand, the trial court valued the law degree in the amount of $27,120 and awarded defendant, the nonstudent spouse, one-half of that amount.

At the divorce trial, the following evidence was adduced pertinent to the value of the law degree: The parties were married in March, 1966, and separated in August or September, 1979. At the time of their marriage, plaintiff was employed as a *621 production worker by the Fisher Body Division of General Motors. This employment continued through September, 1969, except for an interlude when plaintiff worked for the State Highway Department as a student technician. After he left Fisher Body, plaintiff worked as a patrol officer with the Lansing Police Department until 1977, earning either $8,400 or $8,700 per year at the outset and $15,000 per year at the time of his departure from the police department. At the time of the marriage, defendant worked full-time as a cosmetologist, although her hours were reduced later in order to care for the parties’ children. Defendant testified that, as of the time of trial, her cosmetology business grossed $75 to $100 per week, before deduction of work-related expenses.

Plaintiff was a high school graduate at the time of the marriage. In January, 1968, he enrolled in Lansing Community College and continued there until June, 1969. From January, 1970, to June, 1972, he attended Michigan State University. In January, 1973, plaintiff matriculated at Cooley Law School and commenced studies that culminated in his earning a law degree in January, 1976. Plaintiff financed his studies through a combination of va benefits, loans, and his employment. The va benefits were sufficient to pay for all educational expenses plus some living expenses for the periods that he received them, but these benefits were terminated halfway through the course of his law studies. Both parties worked part-time jobs from time to time. Both parties also engaged in domestic chores and the care of their four children, although defendant assumed most of these duties. During plaintiff’s enrollment in law school, he cared for the children on Saturdays while defendant worked, but defendant assumed most of the household tasks and child care responsibilities.

*622 Plaintiff commenced his legal career with the Ingham County Prosecutor’s Office in January, 1976, at a salary of about $10,600 per year. At the time of his departure to assume his new responsibilities as a judge, he was earning a salary of $26,900 per year. He was elected as a district judge in 1980. His starting salary was about $46,000. At the time of the divorce trial, he was earning about $51,900 per year.

On remand, the trial court purported to apply the restitution method for computing the value of the law degree. The court found that plaintiffs change in employment from Fisher Body to the Lansing Police Department resulted in a net loss of $27,120 to the family during the period of time from 1969 to 1976 while plaintiff was engaged in academic studies. The court fixed the value of the law degree at this amount and decided that defendant was entitled to one-half of this value. Defendant was awarded $13,550, payable in monthly installments over a five-year period.

The division of marital property is committed to the sound discretion of the trial court. On appeal to this Court, relief may be granted only if we are convinced that we would have reached a different result if we had occupied the position of the trial court. The trial court’s findings of fact, including its valuation of marital assets, may not be disturbed by this Court unless those findings are clearly erroneous. Kowalesky v Kowalesky, 148 Mich App 151, 155; 384 NW2d 112 (1986), lv den 425 Mich 876 (1986). We have applied this standard to the trial court’s award for the law degree and conclude that reversal is required.

In Woodworth v Woodworth, 126 Mich App 258; 337 NW2d 332 (1983), lv den 419 Mich 856 (1984), this Court discussed two methods of compensating the nonstudent spouse for his or her interest in an *623 advanced degree: (1) a percentage share of the present value of future earnings made possible by the degree, or (2) restitution for funds contributed by the nonstudent spouse toward the acquisition of the degree. Even if it is assumed that the restitution method was properly utilized in the instant case, we think that the trial court’s calculation was erroneous. Given that plaintiff was the primary source of familial support during the pendency of his schooling and the lack of any evidence suggesting that defendant made substantial monetary contributions toward plaintiffs education, a proper application of the restitution method suggests that defendant’s recovery would be negligible. Although the trial court purported to apply restitution principles, it is difficult to see how its calculation reflected an attempt to return to defendant what she had contributed financially toward the law degree.

However, we need not decide the proper application of restitution principles because we conclude, in keeping with the principles of Woodworth, that defendant’s compensation for the law degree should be computed as a percentage of the present value of the future earnings. The application of this same method in Woodworth was premised upon the Court’s perception that the law degree was the "end product of a concerted family effort” and the "result of mutual sacrifice and effort” by both parties. Id., pp 260, 261. The Court further observed that the judicial remedy upon dissolution of a marriage was to compensate the nonstudent spouse’s expectation in realizing the deferred rewards of the student spouse’s education, an expectation that would otherwise be frustrated by the divorce. The underlying concern is to achieve a remedy that is consistent with fairness and equity. In the instant case, we think that it is important *624 for the property settlement to recognize defendant’s intangible, nonpecuniary contributions. Although we do not read Woodworth as compelling compensation for the loss of future earnings in every instance, see Watling v Watling, 127 Mich App 624, 625-628; 339 NW2d 505 (1983), we conclude that the method of compensation used by the trial court failed to achieve an equitable result. 1

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Bluebook (online)
417 N.W.2d 563, 164 Mich. App. 618, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thomas-v-thomas-michctapp-1987.