Educational Degrees

Question 1

Rule for Degrees

Answer 1

If a spouse attains an advanced degree during marriage and the community contributed to the cots of the education, the community gets reimbursement if the education or training substantially enhances the earning capacity of the party

Community Contributions include tuition, school fees, books, supplies, special living expenses (incurred because of education), but not ordinary living expenses (like child care or ordering take out)

Courts have a lot of discretion: reimbursement and assignment of a loan may be reduced or modified in the interest of justice

Amount reimbursed will be for the amount spent plus the legal rate of interest per year (10% annually)

Reimbursement is given to the community, so any amount reimbursed is split

Question 2

Long-Term Marriages

Answer 2

If the couple has been married for over 10 years, it is presumed that the community has substantially benefitted and accumulated significant CP, so there is no need to reimburse

Question 3

Short-Term Marriages

Answer 3

If the couple has been married for less than 10 years, it is presumed that the community has not substantially benefitted and accumulated significant CP, so there is a need to reimburse

Question 4

Educational Loans

Answer 4

1. A loan incurred prior to or during marriage for education is assigned to the student spouse

Debt follows the student at divorce

2. If the community funds are used to pay off a loan, then the community gets reimbursement

If spouse pays for own degree with SP, obviously no reimbursement

If one spouse pays for the other’s degree with SP, there may be reimbursement

Question 5

When Reimbursement is Available

Answer 5

Available when education or training substantially enhances the earning capacity of the spouse seeking the education (e.g. medical school, law school)

Requirements:
1. Student spouse pursued the education or training to substantially enhance earning capacity
2. Earning capacity actually was enhanced by the education

Not Available when the degree is pursued merely because they are of interest to the spouse seeking the degree

Question 6

Marriage of Graham

Answer 6

H was cop, decided to get law degree, W is nurse. H enrolls in school at night and continues to be cop. Gets law degree just because he is interested and wanted to improve education. Education financed with loan. Community pays $12k for tuition and expenses. Couple splits while hes in law school, W wants reimbursement

Holding: He’s still in school, too speculative to figure out if he is going to make more money in the future or not. We need subjective test (what was the intent) and showing of increased earning.

Takeaway: law school does not enhance earning capacity as a matter of law, it is required that you show actual increase in earning capacity due to the degree