1. You will legally be held liable for support of a marital child, even if you are not the biological father due to sperm donation, cheating, what have you. There was one infamous case (among many) where a woman had a child with a man not her husband, then divorced that husband, married the biological father of that child, but the divorced husband and non-related 'father' was still forced to support the kid of that now nuclear family, while the bio dad was off the hook, while living with his own genetic child and married to that child's bio mother.
2. Older sperm does have issues, primarily an increased risk of autism, schizophrenia, and certain types of dwarfism. The 'men make new sperm, it's all good' argument is incorrect. The older a male is, or the more environmental toxins that that male has been exposed to, the higher the chance that he is producing sperm with potential issues. All things being equal, I really don't think you're that much of a reproductive liability. You might want to go to a genetic counselor, get the facts spelled out for both of you, and decide if marriage/reproduction in this circumstance is in your best interest. Your wife is technically right, to a certain extent, but according to her theory, you should both buy teenage eggs and sperm and not use either of your genetic materials, which is of course absurd. Best of luck.
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