I think the school is big enough that it won't be a problem, but we have a lot of those situations at the university and it does lead to a different dynamic. Its almost worse for the lower person as they are somewhat excluded from the day to day complaining/discussions of the boss that goes on in most work places. I do know that a dept chair for example can't directly supervise their spouse for promotion, yearly progress report etc, they are skipped in the chain and the spouse is signed off on by the Associate Dean above the Chair, I guess they will do something similar at school because I think thats a state requirement.