Practice Flashcards
Which of the following tax carryforwards affects the basis of an asset upon transfer in a divorce?
A) Capital loss
B) Net operating loss
C) Passive activity loss
D) Investment interest expense
C) Passive activity loss
When a distribution is paid from a qualified retirement plan, what is the percentage of taxes that the plan administrator must withhold?
The Unemployment Compensation Amendment Act (UCA), which took effect in January 1993, states that any monies taken out of a qualified plan or tax-sheltered annuity are subject to 20% withholding.
Childcare expenses for a child without disabilities can qualify for the tax credit for child and dependent care expenses as long as the child is no older than:
12
According to statistics, approximately how many divorce cases use the “pro se” approach to settlement?
50%
What is a valid reason for one of the parties in a divorce to appeal the judge’s decision?
A judge’s decision can be appealed if one of the parties feels there was an abuse of discretion, such as a failure to take into proper consideration the facts and law relating to a particular matter or an arbitrary or unreasonable departure from precedent and settled judicial custom.
How does an expert witness gets qualified?
The lawyers can stipulate that a witness is qualified as an expert.
How are assets divided in an equitable distribution state?
In an equitable manner, except assets acquired by inheritance or gift
When did the QDRO come into existence?
The REA of 1984 provides that all qualified plans subject to ERISA may segregate assets for the benefit of an alternate payee through a court order known as a Qualified Domestic Relations Order (QDRO).
What would occur if either the “six-month rule” or the “multiple reduction rule” applied to pre 2019 divorces?
Spousal support was treated as child support.
Which of the following resources would be least likely to provide the CDFA professional with information about state laws and procedures with regard to divorce?
A) State bar association
B) Local libraries
C) State accountant associations
D) Local courthouse
C) State accountant associations
Does every state have child support guidelines?
Yes. Every state has child support guidelines. They are not implemented by the federal government, so rules will vary between states.
A person who helps prepare witnesses, improve arguments and rhetoric, and select juries is considered which of the following?
A trial consultant.
Trial consulting is the use of social scientist, particularly psychologists, communication experts, and economists, to aid attorneys in the presentation of a criminal trial or civil lawsuit. Modern trial consultants help prepare witnesses, improve arguments and rhetoric, and select juries.
Which of the following roles is probably the most important role a CDFA professional can play during the divorce process?
A) Strategist
B) Pension valuator
C) Business appraiser
D) Client expectations manager
D) Client expectations manager
This is one of the most important roles that a CDFA professional plays in the process. Clients with unreasonable expectations may refuse reasonable or even generous settlement offers, and they may also lose faith in their team’s professional abilities.
What are characteristic of an ABLE (Achieving a Better Life Experience Act of 2014) account
Account balance of up to $100,000 does not affect eligibility for public benefits such as SSI, SSDI and Medicaid
Eligibility is limited to individuals with disabilities with an age of onset of disability before age 26,
An annual total of $18,000 can be contributed by the person with a disability or from Friends and Family, Special Needs or Pooled Trust, and a 529 Collège Savings Account rollover.
Contributions are made from post-tax dollars
What is a method of discovery that consists of the sworn testimony of a witness taken outside of court?
Depositions
How many days is the typical residency requirements for filing for divorce?
90
(some states have 180 but 90 is typical)
Example of a career asset?
Unemployment benefits
(not car, golf membership)
What does the administrator assume regarding survivor benefits from a pension plan?
The plan administrator will assume that the participant is taking the single life option unless instructed otherwise.
What is the plan administrator required to do when participants ask for a distribution from a qualified plan?
The plan administrator is required to provide direct rollover options pursuant to The Unemployment Compensation Amendment of 1992.
