Module 4 Family law and life cycle

Question 1

Separation Agreement

Answer 1

A contract between spouses in which they agree to live separet lives and set various conditions. Separated spouses are still married. It is covered by contract law

Question 2

Spousal Couple

Answer 2

2 perspons who are living in a conjugal relationship for at least one year and/or have childrun regardless weather they are married

Question 3

Child Support

Answer 3

Obligation to support childrun under 18 or in full time attendace at school. Since may 2006 support is based on the gross earning of the non custodial parent. It is not taxable/tax deductible

Question 4

Spousal support

Answer 4

In the event of a marriage breakdown, each spouse has the obligation to support the other spouse to the extent that support is needed and can be aforded. Taxable/tax deductible

Question 5

3 Elements concidered when determining spuosal support

Answer 5

1) Lenght of cohabitation
2) function performed by each spouse
3) Existing agreement

Question 6

4 Objectives of spousal support

Answer 6

1) Compensate for adv or disadv arising from the breakdown
2) Apportion consequences from child support
3) Releif heardship from the breakdown
4) Promote economic self suficiency

Question 7

Divorce

Answer 7

Legal termination of a marriage granted by a court under the federal divorce act. Starts by a petition by one party to a court asking for the marriage to be disolved

Question 8

3 Grounds for Divorce

Answer 8

1) lived separately for a year
2) Infidelity
3) Cruelty

Question 9

Division of Property

Answer 9

Separation between what was owned before the marriage and what was acquired during. Can not be enforced by unmarried couples

Question 10

6 things that are not devided in division of property

Answer 10

• Matrimonial home
• property excluded in prenuptial contract
• Gifts, inheritance, proceeds from settlements
• Personal items
• Proceeds from life insurance
• property acquired after separation

Question 11

Matrimonial Home

Answer 11

Every property that was at time of the separation occupied by both spouses. Both spouses have equal right to the matrimonial home

Question 12

Mediator

Answer 12

Independant 3rd party who works with couples to help them find ways to resolve disputed issued

Question 13

Arbitrator

Answer 13

Retired juge or lawyer who listens to both sides and makes a decision

Question 14

Colaborative Family Law

Answer 14

Lawyers and clients agree to negociate a settlement without resorting to court

Question 15

4 Consumption stages in a family life cycle

Answer 15

Stage 1: Consumption > Income
Stage 2: Comsumption < Income
Stage 3: Income > Consumption
Stage 4: Consumption > Income

Question 16

8 Categories in life cycle

Answer 16

1-Young + Single 
2-Young + Couple 
3-Couple + Childrun 
4-Single + Childrun 
5-Older + Couple 
6-Older + Single 
7-Retired + Couple 
8-Retired + Single

Question 17

Financial Intermediation

Answer 17

Transfering money from surplus economic units to units that have economic uses for the money

Question 18

The “Four Pillars” of the financial system

Answer 18

Banks, Trust companies, Life insurance companies, Investment dealers

Question 19

Bank of Canada

Answer 19

Controled by the federal gov, it controles monetary policy

Question 20

2 types of Chartered Banks

Answer 20

Schedule A: 5 big banks with extensive network

Schedule B: Foreign owned with little or no retail branch

Question 21

Trust Companies

Answer 21

Offer spé trust managment services such as estate managment and spé trust funds

Question 22

Caisses populaires and credit unions

Answer 22

Mutual associations owned by their own customers. Are connected and formed through a social network

Question 23

Mortgage and loan companies

Answer 23

Provie comercial and residential mortgages and finances them by taking on term loans

Question 24

Investment dealers

Answer 24

Provides primary investmens services to sell nd buy securities

Question 25

Genera Insurance Companies

Answer 25

Also property, casualty and liability insurance

Question 26

Mutual fund companies

Answer 26

Holds pools of securities, shares of which are sold to customers who become unit holders

Question 27

What are the 2 most contentious issues in a separation agreement

Answer 27

• Child custody

- Financial disclosure

Question 28

What is the importance of each of these items for a Yonger single person: Budgeting; Income Tax; Risk Managment; Debt Managment; Investment; Retirement planning

Answer 28

Budgeting: High 
Income tax: Low 
Risk Managment: Low
Debt Managment: Medium 
Investment: Low 
Retirement planning: Low

Question 29

What is the importance of each of these items for a Older Couple with independant childrun: Budgeting; Income Tax; Risk Managment; Debt Managment; Investment; Retirement planning

Answer 29

Budgeting: Med 
Income tax: High 
Risk Managment: Med
Debt Managment: Med 
Investment: High
Retirement planning: Med

Question 30

Financial Life cycle

Answer 30

Stages of differing financial positions and earning power a person goes through during their life