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A Biased Valuation: The Treatment of a Professional Degree in Divorce Actions
Author(s) -
Raymond Richard
Publication year - 1995
Publication title -
american journal of economics and sociology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.199
H-Index - 38
eISSN - 1536-7150
pISSN - 0002-9246
DOI - 10.1111/j.1536-7150.1995.tb03426.x
Subject(s) - valuation (finance) , human settlement , degree (music) , positive economics , economics , property (philosophy) , professional degree , value (mathematics) , actuarial science , law and economics , sociology , public economics , mathematics , epistemology , geography , accounting , medicine , statistics , philosophy , archaeology , acoustics , medical education , physics
A bstract Over the past two decades, courts have unsuccessfully attempted to develop a consistent approach to the treatments of a professional degree in divorce actions. After reviewing the conceptual issues involved, a measurement method is suggested which would provide the fact finder with both an upper and a lower bound for the value of a degree. Hypothetical future income streams for average lawyers and physicians, and their spouses, are used to examine the impact of basing property settlements upon each of these bounds. It is argued that both equityand conceptual considerations support the conclusion that past decisions have very often inappropriately failed to consider the upper bound in valuing a degree in divorce settlements.