You have got lots of good advice about lawyers and money.
You mentioned you have two kids. Keep in mind that there will actually be a time when the emotion/anger/frustration towards your wife is gone. It will be gone for her too. You both will move on. When the dust settles, it's the kids that are left with all the emotion and love for both of you. As hard as it is, you need to look past the bullshit and find a solution that benefits your children. It's not about you or her anymore.
Exactly the flawed logic that caused the current policy to exist.
The time you spent on a master's degree should be worth nothing. The education you received should be worth something but if you can translate it into improved performance. The problem is that the AF focuses on the time-spent aspect not the performance aspect and looks at master's as symbols of dedication, nothing more.
It isn't about good or bad, it's about trends. People will respond with small improvements into the little things (Blues Monday, PTL issues, AAD degrees or whatever). If we start fixing the little things that are easy to fix, the bigger things will come with time. My opinion only, but I have high hopes for the new CSAF.