How to carve a medical degree: comment
Division of Assets at divorce is a major source of contention. This comment refines a paper by Borenstein and Courant (1989) in which they show how to treat investment in educational degrees during a marriage as an asset to be divided between the educated spouse and the supporting spouse who "put the educated spouse through school." B-C treat the asset as a virtual loan with priority claim for repayment against the physical and monetary assets of the marriage, and with a simple formula: repay the loan with interest. This paper shows that the B-C rule is biased against the student spouse and encourages strategic divorce and refines the amount to be paid back and the interest to be applied. By evaluating the virtual loan in each time period using market rates of interest, and acknowledging enhanced consumption as a partial or complete repayment of virtual educational loans, the rule becomes both fairer to the student spouse and neutral with respect to the divorce decision.
|Date of creation:||Sep 1991|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Borenstein, Severin & Cournat, Paul N, 1989. "How to Carve a Medical Degree: Human Capital Assets in Divorce Settlements," American Economic Review, American Economic Association, vol. 79(5), pages 992-1009, December.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:26579. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.