US-New YorkIs my spouse's professional license or degree considered marital property?
No, a professional license or degree is not marital property in New York, but the enhanced earning capacity it may produce can be considered a marital asset subject to equitable distribution.
What the Law Says
New York law explicitly excludes professional licenses and academic degrees from the definition of marital property—but recognizes that the increased earning capacity they generate may have measurable economic value during marriage.
Under New York Domestic Relations Law (DRL) § 236(B)(1)(d), a 'license or degree' is expressly excluded from the definition of 'marital property.' This means the license or degree itself—like a medical license or law degree—cannot be divided, transferred, or sold as part of a divorce settlement.
However, DRL § 236(B)(5)(a) permits courts to consider 'the probable future earnings capacity of each party' when distributing marital assets equitably. Courts have interpreted this to allow valuation of the *enhanced earning capacity* attributable to a license or degree earned during the marriage—even though the credential itself remains separate property.
The law requires that any award based on enhanced earnings be calculated carefully: it must reflect only the portion of increased income reasonably attributable to the marital effort (e.g., financial or emotional support from the spouse, time/effort devoted during marriage), and must be supported by expert testimony or reliable methodology.
Statutory Text‘Marital property’ does not include… a license or degree…
— Domestic Relations Law § 236(B)(1)(d) — Definition of marital property
Statutory TextIn determining an equitable disposition of property… the court shall consider… the probable future earnings capacity of each party…
— Domestic Relations Law § 236(B)(5)(a) — Factors in equitable distribution
What Courts Have Said
New York appellate courts have consistently held that while licenses and degrees are not divisible property, their economic benefit may be shared—subject to strict limits on valuation and proof.
Held that a medical license obtained during marriage is not marital property, but its enhanced earning capacity is a marital asset subject to equitable distribution—marking the foundational precedent for valuing professional credentials in NY divorce.
Affirmed that enhanced earning capacity must be proven with credible evidence (e.g., expert testimony); speculative or inflated estimates will be rejected.
Clarified that only the *marital portion* of enhanced earnings—i.e., the increase attributable to efforts or support during the marriage—is distributable; pre-marital or post-separation gains are excluded.
What to Do
Gather documentation showing when the license or degree was earned and what marital resources (e.g., tuition payments, spousal support during study, childcare) contributed to its attainment.
Retain a qualified vocational or forensic economist to assess the marital portion of enhanced earning capacity—courts require expert testimony for valuation.
Be prepared to show how the license or degree translated into measurable income growth during the marriage (e.g., salary comparisons before/after, industry benchmarks).
Understand that no court can order transfer or assignment of the license—it can only award monetary compensation reflecting the marital value of the resulting earnings advantage.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.