Section 5 Quiz

Question 1

The valid purpose for spousal support payments after divorce?

Answer 1

Spousal support payments are deemed to be temporary rehabilitative payments designed to bridge the gap for the spouse to ease his or her way into the workplace and earn wages up to his or her income potential.

Question 2

Financial aid for blended families, as far as looking into finances.

Answer 2

Some schools may require information from the noncustodial parent, such as the CSS Profile being filed.

Question 3

Division of a pension during a divorce is what?

Answer 3

1. Under the buyout method, the value of retirement accounts must be valued and determined in advance of the final divorce decree.
2. The advantage of the wait-and-see method is that if the numbers are not where each spouse thought they would be, then each spouse shares in the risk while the monies are accumulating.
3. A QDRO should be used to provide for payments from a qualified retirement plan to the alternate payee spouse.

Question 4

When selling a home during a divorce what factors or adjustments are considered?

Answer 4

1. potential fees for real estate commissions if the residence would be sold
2. spousal support requirements in this divorce
3. maintenance required on the residence that had been deferred during the marriage

Question 5

What is the tax treatment of a property settlement pursuant to a divorce?

Answer 5

It is a nontaxable event.