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Reimbursement Alimony: How Much Is That Piece of Paper Worth?

By Laurence J. Cutler and Alison C. Leslie

In the past few years, enrollment in graduate programs has reached new levels. Recent college graduates now look to expand their education by obtaining a Masters Degree or Doctorate. Their reasons for attending advanced schooling vary: Whether it is to delay entering the work force or to obtain higher education for increased financial success, the ramifications for a spouse who supports the graduate student can be crucial in marriages of relatively short duration.

There are two diverging schools of thought as to how a spouse should be compensated for supporting the husband/wife who obtains an advanced degree during the early stages. Equity dictates that the supporting spouse be compensated for sacrificing and supporting the graduate-student spouse. Sacrifices may include moving to a new location, foregoing a higher marital standard of living, and the actual out-of-pocket financial support of the graduate-student-spouse. The remedies are to: 1) value the license or graduate degree as marital property; or 2) compensate the supporting spouse in the form of reimbursement alimony.

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