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Educational
expenses
I think you are
mixing family law and community property. We are responsible for CP i.e. how
assets/ debts divvied up on
divorce or
death. FL deals with child/ spousal
support , custody. It is true that education or imputed earning capacity
of one spouse is
significant factor for calculating of spousal support. But we are not to
calculate supports, we are dealing
with property
division: main rule
regardless of who is what, who became what, who contribute what, b/c it was
“community
efforts”, everything is split 50/50.
There are exceptions, such as some debt, tort
liability from action not in benefit of community.
On of such
exceptions is education debt by statutory exceptions to the “equal division on
divorce” rule
(one spouse ending
up with more than 50% total). One spouse has incurred educational
debts (treated like separately incurred debts)
Educational expenses
1. A professional degree is
not community property subject to division on divorce.
a. But a community is entitled to reimbursement with interest when:
i. community funds are
used to pay for education or training or to repay a loan related thereto; AND
ii. Education during the
marriage substantially enhanced other spouse’s earning capacity.
b.
Reimbursement is usually limited to direct expenses such as tuition,
books, supplies, and transportation.
c.
Loans still outstanding at divorce are assigned solely to the educated
spouse.
2. Reimbursement is also
available if educational expenses were incurred before the marriage and the
loans
were paid with community funds
after marriage.
Now is your question:
3. Defenses to reimbursement of the community estate for educational
expenses (only one is sufficient)
a. Community has already
substantially benefited from the earnings of the educated spouse.
i. If more then 10
years have elapsed since the degree was awarded, the presumption is that the
community has
substantially benefited and, unless the presumption is rebutted, no
reimbursement.
b. Other spouse also
received a CP-funded education.
c. Education was
obtained by a spouse who was seeking spousal support and that education enabled
spouse to engage
in income that reduced the need she otherwise would have for spousal support.
As such let’s look into “# c” defense:
Wife got MBA paid by community. that degree allows wife to engage in
employment that reduced the need she otherwise would have for spousal support
from her ex-husband. Husband can not ask to reimburse CP for degree, b/c MBA is
not a property for purposes of Cal Family code. He can only ask to reimburse
for her tuition (and in some newer, more radical cases even for living
expenses during her going to school, split in courts). Wife would argue,
honey, you will not need to pay as much as for me now compare as for me w/o MBA
degree. I am making 150K and you are still at you 50K job. Instead of my education degree expenses going
to CP and being divided 50/50, and you
getting 50% , we are not going to count it. But rather instead of paying me
spousal support, your support will be a lot less or even nothing. So it is fair,
b/c you, husband, will get reimbursed over the next 5 years by reduced o even
zero spousal support.
The similar defense by wife would be: it is true that CP paid for my MBA, by I was
earning 150 k a year for last 10 years,
CP had enough of opportunity to get reimbursed for my education ( I was a
housewife before marriage and became high earned profession bring substantial
income) So there is no reimbursement for my education