How Are Professional Degrees Valued In A Divorce?
Divorcing couples generally expect to divide assets, such as a home, vehicle or other expensive property. What separating spouses often overlook is the valuation of a professional degree or practice. In a Utah divorce, a professional degree gained by one spouse during a marriage that required the other spouse’s sacrifice has value.
At Kristopher K. Greenwood & Associates, we help divorcing spouses appraise and understand the value of professional degrees. Our Salt Lake City, Ogden and Lehi lawyers can give you an idea of what you expect from your divorce filing and fight for your best interests in the courtroom and during negotiations.
How Do The Courts Decide The Value Of A Degree Or A Practice?
In a contested divorce, a judge will review the circumstances of how a spouse acquired a degree and how this affected the other spouse. If the spouse without the degree gave up plans, such as a career path, or if they contributed in some form to acquiring the degree, they may be able to get compensation. This compensation can take many forms, including as a portion of the degree-holder’s future income or as a lump sum.
Here are some questions the court will use to determine the value of a degree in a divorce:
- How did the non-degree-holding spouse contribute to the degree holder’s education?
- What are the expected future earnings of the degree holder?
- What is the value of the degree holder’s practice or business assets?
- What is the typical retirement age in the degree holder’s area?
- What is the total tax rate on the degree holder’s income?
Utah is an equitable distribution state, which means that in a divorce the family court does not have to evenly split marital property. Divorce judges have a wide latitude to decide how much a degree is worth and the final division of assets.
Talk To Knowledgeable Attorneys For Dividing Assets
Our proven courtroom lawyers can create an effective strategy for your divorce that explains your contributions to your ex-spouse’s professional degree. You can call (801) 475-8800 or reach out via email to schedule your free consultation.