G.63 Planning for divorce, unmarried couples and other special circumstances

Question 1

Which of the following is NOT a common reason for divorce?

A. Infidelity
B. Incompatibility
C. Financial difficulties
D. Marriage counseling

Answer 1

D. Marriage counseling

G.63 Planning for divorce, unmarried couples and other special circumstances

Question 2

When dividing marital assets during a divorce, which of the following is NOT typically considered?

A. Real estate
B. Retirement accounts
C. Business ownership
D. Inheritance received during the marriage

Answer 2

D. Inheritance received during the marriage

G.63 Planning for divorce, unmarried couples and other special circumstances

Question 3

A couple who is not married but has been living together for several years is often referred to as:

A. Committed partners
B. Common-law spouses
C. Cohabitating couple
D. Domestic partners

Answer 3

B. Common-law spouses

G.63 Planning for divorce, unmarried couples and other special circumstances

Question 4

When dividing assets during a divorce, which of the following is NOT a common approach?

A. Equitable distribution
B. Community property
C. Proportional division
D. Marital settlement agreement

Answer 4

C. Proportional division

G.63 Planning for divorce, unmarried couples and other special circumstances

Question 5

A couple who is not married but has children together can establish which of the following legal agreements to address custody, support, and visitation?

A. Marriage contract
B. Prenuptial agreement
C. Domestic partnership agreement
D. Co-parenting agreement

Answer 5

D. Co-parenting agreement

G.63 Planning for divorce, unmarried couples and other special circumstances

Question 6

When dividing marital assets during a divorce, which of the following is NOT considered in the valuation process?

A. Debt
B. Investment accounts
C. Personal property
D. Social media accounts

Answer 6

D. Social media accounts

G.63 Planning for divorce, unmarried couples and other special circumstances

Question 7

Which of the following is NOT a common type of spousal support awarded during a divorce?

A. Alimony
B. Rehabilitative support
C. Permanent support
D. Custodial support

Answer 7

D. Custodial support

G.63 Planning for divorce, unmarried couples and other special circumstances

Question 8

Which of the following is NOT a common reason for seeking a prenuptial agreement?

A. To protect assets owned before the marriage
B. To outline the distribution of property in the event of divorce
C. To establish custody and visitation arrangements
D. To prevent one spouse from being held responsible for the other’s debts

Answer 8

C. To establish custody and visitation arrangements

G.63 Planning for divorce, unmarried couples and other special circumstances

Question 9

Which of the following is NOT a common issue addressed in a domestic partnership agreement?

A. Property ownership
B. Financial support
C. Medical decision-making authority
D. Custody and visitation arrangements

Answer 9

D. Custody and visitation arrangements

G.63 Planning for divorce, unmarried couples and other special circumstances

Question 10

Anna and Jake, an unmarried couple, have purchased a house together. What is the most appropriate way for them to hold title to their new home to ensure equal rights to the property?

A. Joint tenancy with right of survivorship
B. Tenancy in common
C. Sole ownership
D. Tenancy by the entirety

Answer 10

B. Tenancy in common

Tenancy in common allows each owner to have an undivided interest in the property, which can be unequal, and does not include the right of survivorship. This allows each party to dispose of their interest as they choose, making it a suitable option for unmarried couples like Anna and Jake.

G.63 Planning for divorce, unmarried couples and other special circumstances

Question 11

Carol and Doug are divorcing after 15 years of marriage. Doug has a pension that he contributed to throughout their marriage. How should the pension be handled in the divorce proceedings?

A. The pension should be considered separate property because it is in Doug’s name.
B. The pension should be divided equitably, considering both Carol’s and Doug’s circumstances.
C. The pension should be awarded solely to Doug, as he earned it.
D. Carol should waive all rights to the pension.

Answer 11

B. The pension should be divided equitably, considering both Carol’s and Doug’s circumstances.

In many jurisdictions, pensions earned during the marriage are considered marital property and should be divided equitably between the spouses in the event of a divorce.

G.63 Planning for divorce, unmarried couples and other special circumstances

Question 12

Lisa and Mohammad are an unmarried couple living together. Lisa has a child from a previous relationship. What estate planning tool should Lisa use to ensure her child inherits her assets?

A. A simple will
B. Joint tenancy
C. A living trust
D. Designation of beneficiary forms

Answer 12

C. A living trust

A living trust can provide Lisa with the flexibility to specify how her assets should be distributed upon her death and can include provisions for her child, regardless of her marital status with Mohammad.

G.63 Planning for divorce, unmarried couples and other special circumstances

Question 13

Tom and Harry are a married couple considering divorce. They are worried about tax implications of dividing their jointly held investment assets. What should they consider to minimize potential tax impacts?

A. Transfer the assets as part of the divorce settlement.
B. Sell the assets and split the proceeds.
C. Retain joint ownership of the assets post-divorce.
D. Reinvest the earnings into tax-deferred accounts.

Answer 13

A. Transfer the assets as part of the divorce settlement.

Transferring assets between spouses as part of a divorce settlement typically does not trigger a taxable event. This strategy minimizes immediate tax implications.

G.63 Planning for divorce, unmarried couples and other special circumstances

Question 14

Emily and Jeff are an unmarried couple with a joint checking account. Emily contributes 70% to the account, while Jeff contributes 30%. How should they manage this account to reflect their contributions in case of separation?

A. Continue with the current arrangement.
B. Split the account into two separate accounts.
C. Convert the account into a tenancy in common arrangement.
D. Keep detailed records of contributions and expenses.

Answer 14

D. Keep detailed records of contributions and expenses.

Keeping detailed records helps to clearly establish each partner’s contributions and expenses, which can be crucial during financial disputes or separation.

G.63 Planning for divorce, unmarried couples and other special circumstances

Question 15

Nina and Mark are divorcing after 20 years. Nina is a high earner, while Mark has been a homemaker. Mark is concerned about his financial security post-divorce. What kind of support should he be entitled to?

A. Child support
B. Alimony
C. Lump-sum payment
D. No support, as he did not contribute financially

Answer 15

B. Alimony

Alimony (or spousal support) is designed to help a lower-earning or non-earning spouse maintain a standard of living reasonably comparable to that enjoyed during the marriage. This would likely apply to Mark, given his role as a homemaker.

G.63 Planning for divorce, unmarried couples and other special circumstances

Question 16

Jenny and Sam are not married but have a child together. Sam is the biological father and wants to ensure his parental rights. What should he do legally?

A. Establish paternity through a court order.
B. Sign the birth certificate.
C. Create a co-parenting agreement.
D. All of the above.

Answer 16

D. All of the above.

Establishing paternity, signing the birth certificate, and creating a co-parenting agreement are all important steps to ensure that Sam’s parental rights are recognized and protected.

G.63 Planning for divorce, unmarried couples and other special circumstances

Question 17

During their marriage, Chloe and Dan acquired a vacation home. They are now divorcing, and both want the home. What is the most equitable way to handle this situation?

A. Sell the home and split the proceeds.
B. One party buys out the other’s interest.
C. Continue co-ownership post-divorce.
D. Allocate the home to the party with greater financial need.

Answer 17

B. One party buys out the other’s interest.

A buyout allows one party to retain the property while compensating the other for their share, making it a straightforward solution when both parties are interested in the same asset.

G.63 Planning for divorce, unmarried couples and other special circumstances

Question 18

Heather and Tony are unmarried but planning to buy a home together. What should they include in their cohabitation agreement to protect their individual financial interests?

A. Provisions for property division upon separation.
B. Arrangements for sharing living expenses.
C. Guidelines for handling debts incurred during the relationship.
D. All of the above.

Answer 18

D. All of the above.

A comprehensive cohabitation agreement should include details on property division, sharing of living expenses, and handling of debts to protect each individual’s financial interests.

G.63 Planning for divorce, unmarried couples and other special circumstances

Question 19

Laura and Greg, a divorcing couple, are disputing over the custody of their two children. What factors will the court consider in determining custody?

A. The financial status of each parent.
B. The children’s preferences.
C. Each parent’s ability to provide a stable environment.
D. All of the above.

Answer 19

D. All of the above.

Courts typically consider multiple factors, including the financial status of each parent, the children’s preferences (depending on age), and each parent’s ability to provide a stable, supportive environment when determining custody arrangements.

G.63 Planning for divorce, unmarried couples and other special circumstances

Question 20

Mia and Nick are unmarried and own a business together. If they decide to end their romantic relationship, what is the best way to handle the business?

A. Dissolve the business.
B. One party buys out the other’s interest.
C. Continue running the business together.
D. Sell the business and split the proceeds.

Answer 20

B. One party buys out the other’s interest.

If both parties are not interested in continuing the partnership post-breakup, a buyout is often a clean solution that allows the business to continue and compensates the departing owner.

G.63 Planning for divorce, unmarried couples and other special circumstances