Jennifer worked two jobs while her husband David attended medical school. She supported them both on her retail management salary while he focused entirely on his studies, studying late into the night for board exams while she paid their rent, bought their groceries, and helped him prepare for his medical licensing exams. After his residency, David became a successful orthopedic surgeon earning $650,000 annually. Three years into his practice, he filed for divorce.
Jennifer, now 33 years old, worked the same retail job making $48,000 a year. During settlement negotiations, David’s attorney argued that professional degrees and licenses weren’t property and therefore had no value in divorce. Jennifer should receive half of their modest accumulated assets—about $120,000—and perhaps some temporary spousal support. That was it.
The Debate: Are Professional Degrees Property in Divorce?
Jennifer’s attorney disagreed. She argued that Jennifer sacrificed her own education and career opportunities to put David through medical school, that his medical degree and license represented the most valuable asset created during their marriage, and that fairness demanded Jennifer receive compensation for her investment in David’s future earning capacity.
This question has troubled courts for decades. On one hand, professional degrees and licenses clearly have value—often more value than any other marital asset. A medical degree might enable $15-20 million in lifetime earnings above what the degree-holder would earn without it. When one spouse sacrificed to help the other obtain that degree, denying any compensation can seem profoundly unfair.
On the other hand, professional degrees and licenses don’t fit neatly into traditional property concepts. You can’t sell a medical license, transfer a law degree, or pledge a CPA certification as collateral. The value is entirely personal to the holder and depends on their future efforts, choices, and circumstances.
How Different States Handle Professional Degrees in Divorce
States have taken different approaches to this problem. New York famously held in O’Brien v. O’Brien that a medical license is marital property subject to equitable distribution, reasoning that the license has the key characteristics of property—value and exchangeability—even if it can’t be sold in traditional markets. New York courts have valued professional degrees based on the present value of the enhanced earning capacity they provide.
Other states rejected this approach, reasoning that professional degrees are personal to the holder and represent future earning capacity, not property. These states address supporting spouse contributions through reimbursement alimony or enhanced support, rather than treating the degree itself as a divisible asset.
Texas Law: Professional Degrees Are Not Divisible Property
Texas falls into the latter category. Texas courts have generally held that professional degrees and licenses are not property subject to division in divorce. In a case involving a medical degree, the Texas Supreme Court explained that a professional degree doesn’t have the essential characteristics of property—it can’t be sold, transferred, inherited, or pledged. Its value depends entirely on the holder’s future efforts and choices.
However, Texas law does recognize that when one spouse supports the other through professional education, fairness requires compensation. The supporting spouse may be entitled to reimbursement for contributions to the other’s education and training, and the enhanced earning capacity resulting from the degree can be considered when determining spousal support and property division.
Reimbursement Claims: Recovering Your Investment in Your Spouse’s Education
In Jennifer’s case, her attorney argued for reimbursement under Texas law. During David’s medical education, Jennifer paid approximately $180,000 in household expenses, tuition assistance, and living costs that enabled David to complete his training. She could prove these expenditures through bank statements, loan records, and documented contributions. The court ordered David to reimburse Jennifer for these direct contributions, plus interest, totaling approximately $235,000.
Documenting Your Contributions to Your Spouse’s Professional Development
For couples where one spouse is pursuing or has recently completed professional education, understanding these principles is critical to protecting financial interests. Supporting spouses should document their contributions carefully—maintain records of tuition payments, household expense coverage, loans taken to support education, and sacrificed career opportunities. These records support reimbursement claims and demonstrate the extent of investment in the other spouse’s professional development.
Timing Matters: When Divorce Occurs Relative to Professional Credentialing
The timing of divorce relative to professional credentialing also matters significantly. If divorce occurs after the degree is obtained but before substantial earnings have materialized, the marital estate may have few accumulated assets despite the spouse’s enhanced earning potential. The supporting spouse’s investment may have created enormous value that isn’t yet reflected in the asset column, making reimbursement and support awards critical to achieving fair outcomes.
Conversely, if divorce occurs many years after professional credentialing, the degree holder’s enhanced earnings have generated accumulated wealth—retirement accounts, real estate, investments—that the supporting spouse shares through property division. The degree’s value has been monetized over time, reducing the need for special consideration of the credential itself.
How Anunobi Law Can Help
Issues involving high-net-worth divorce, complex assets, and cross-border or business-related disputes require experienced legal guidance. Anunobi Law regularly assists clients with the specific issues discussed in this article. If you have questions, need advice tailored to your circumstances, or would like to discuss how these issues may affect you, please contact Anunobi Law to schedule a confidential consultation.
Legal Disclaimer
This article is provided for general educational and informational purposes only and does not constitute legal advice. Reading this article does not create an attorney-client relationship between you and Anunobi Law. Every legal matter is fact-specific, and the application of the law may vary based on individual circumstances. You should consult a qualified attorney regarding your particular situation before taking or refraining from any action.
Any stories, names, or scenarios described in this article are hypothetical and used solely to illustrate legal principles. They are not intended to describe real individuals or actual cases