## Facts

- Melvin M. Mahoney and June Lee Mahoney married in 1971 and separated in October 1978.
- Both spouses were college educated at marriage; they generally shared household expenses during the marriage.
- From September 1975 to January 1977, Melvin attended business school and earned an M.B.A.; during that period June contributed about $24,000 to household support while Melvin contributed nothing.
- Melvin’s direct schooling costs (about $6,500) were paid through veterans’ benefits and an Air Force payment.
- After completing the M.B.A., Melvin obtained employment in commercial lending.
- June pursued a part-time graduate program funded by her employer while working full time and earned a master’s degree after the parties separated.
- Melvin filed for divorce in March 1979; June counterclaimed.

## Issues

1. Whether an advanced/professional degree earned during marriage is “property” subject to equitable distribution under N.J.S.A. 2A:34-23.
2. If the degree is not distributable property, whether the supporting spouse may recover amounts contributed to the other spouse’s support while the degree was pursued.

## Decision

- The court held that an M.B.A. (and similar advanced degrees) is not “property” subject to equitable distribution.
- The court recognized “reimbursement alimony” as an available remedy to compensate a supporting spouse for financial contributions made toward the other spouse’s education during the marriage.
- The court agreed with the Appellate Division’s rejection of degree-as-property treatment but reversed because the disposition left the supporting spouse without a remedy.
- The matter was remanded for the trial court to determine an appropriate reimbursement-alimony award based on the spouse’s proven contributions and equitable considerations.

## Legal Principles

- An educational or professional degree obtained during marriage is not marital property for equitable distribution because it is personal to the holder, nontransferable, and not susceptible to reliable valuation as a divisible asset.
- Enhanced earning capacity associated with a degree is not itself distributable property; it reflects potential future income rather than an owned, transferable asset.
- A supporting spouse may be awarded reimbursement alimony to repay reasonable financial contributions made to support the other spouse’s educational pursuit when those expenditures were made with an expectation of shared marital benefit that is defeated by divorce.
- Reimbursement alimony is restitutionary in aim and is not dependent on the recipient spouse’s ongoing need for support in the traditional alimony sense.

## Conclusion

The court rejected treating an advanced degree as a distributable marital asset but required an equitable remedy to avoid unjust enrichment, directing trial courts to consider reimbursement alimony to compensate a spouse who funded or materially supported the other spouse’s education during the marriage.


Mahoney v. Mahoney, 91 N.J. 488, 453 A.2d 527 (N.J. 1982)