Legal Definitions - reimbursement alimony

Reimbursement alimony is a specific type of financial payment ordered by a court during a divorce. Unlike traditional alimony, which often focuses on providing ongoing support to a spouse based on their financial need, reimbursement alimony aims to compensate one spouse for their direct financial contributions or significant sacrifices made to enhance the other spouse's education, career, or professional earning capacity during the marriage. It acknowledges that one spouse invested in the other's future success, and seeks to "reimburse" them for that investment, rather than providing long-term support.

• Example 1: Funding a Medical Degree

  Scenario: During their marriage, Sarah worked full-time as a paralegal and used a significant portion of her income to cover her husband Mark's tuition, books, and living expenses while he attended medical school. Mark is now a successful physician earning a high income, while Sarah's earning capacity has remained relatively stable.

  Explanation: In this situation, a court might award Sarah reimbursement alimony. This payment would not be based on Sarah's current financial need for ongoing support, but rather to compensate her for the direct financial investment she made in Mark's medical education, which significantly increased his earning potential.

• Example 2: Using Inheritance for an MBA

  Scenario: David inherited a substantial sum of money early in his marriage to Emily. Instead of investing it for his own benefit, he agreed with Emily to use the entire inheritance to pay for her executive MBA program at a prestigious university, believing it would benefit their shared future. Emily completed the program and quickly advanced to a high-paying executive position.

  Explanation: If David and Emily later divorce, a court could order Emily to pay David reimbursement alimony. This would acknowledge and compensate David for the specific financial contribution (his inheritance) he made to Emily's career advancement, which directly led to her increased earning capacity.

• Example 3: Supporting Professional Licensure

  Scenario: While married, Michael supported his wife, Lisa, both financially and by managing most household responsibilities, allowing her to quit her job and dedicate two years to studying for and passing the rigorous Certified Public Accountant (CPA) exam. Lisa subsequently secured a high-paying position at an accounting firm, while Michael's career did not see a similar boost.

  Explanation: Here, Michael could be awarded reimbursement alimony. The payments would compensate him for his direct and indirect contributions (financial support and household management) that enabled Lisa to obtain her CPA license, a professional credential that significantly enhanced her earning power.