CDFA Exam Questions And Correct Answers, 288
Q&A (Answered) With Complete Verified Solution,
100% Correct, Updated Fall 2024/2025.
In a divorce settlement, what mistake is commonly made by financial
professionals without proper training?
Considering the tax consequences of the sale of property
Considering investment returns
Considering inflation
Considering only an equal division of property
Considering only an equal division of property
Which of the following is a common mistake that divorcing couples make?
Failing to consider the tax consequences of an early withdrawal
from a retirement account
Dividing a joint checking account to obtain an equitable
distribution of assets
Using the cost basis to determine taxes on the sale of property
Failing to consider the taxes due on child support payments
Failing to consider the tax consequences of an early withdrawal from a retirement account
From a client's perspective and without regard to the cost, at which of the
following times should an individual hire a CDFA professional?
When considering getting a divorce
After meeting with an attorney
After filing a petition for divorce
Prior to a final judgment for divorce
When considering getting a divorce
Which of the following is NOT an appropriate service that CDFA professionals can provide?
Determine the financial impact of the proposed settlement.
Provide litigation support relating to financial issues.
Prepare a report showing the financial impact of one spouse
keeping the family home.
Prepare business valuations and analysis.
Prepare business valuations and analysis.
,Which of the following is NOT a reason for a CDFA professional to interview
clients?
To collect financial data
To develop a budget
To complete answers to interrogatories
To help them identify their financial goals, including retirement
objectives
To help them identify their financial goals, including retirement
objectives
Jacob is divorcing his wife, Andrea. Jacob has hired Michelle, a CDFA
professional, to work on his divorce case. Which of the following actions are
appropriate for Michelle?
Michelle will only need to analyze Jacob's financial information.
Michelle will only need to analyze Andrea's financial information.
Michelle will need to analyze Jacob's financial information and
audit Andrea's financial information.
Michelle will need to analyze the financial information for both
Jacob and Andrea.
Michelle will need to analyze the financial information for both
Jacob and Andrea.
An individual who is trained to calculate statistically risks, premiums, and life
expectancies for insurance and pension plans is referred to as a/an
_______________.
A ________________ is an individual who has been trained to assist
people in coming to an agreement.
A CDFA professional is able to give legal advice under which of the following
conditions?
The advice must be limited to the division of marital assets and
debts.
A CDFA professional is not able to give legal advice under any
conditions.
The CDFA professional must seek and obtain permission from the
client's lawyer before giving legal advice.
The advice must be limited to recommending levels of spousal
support.
A CDFA professional is not able to give legal advice under any
conditions.
,What impact have the "no-fault" divorce laws had on divorces in the United
States?
An increase in the number of divorces
A decrease in the number of divorces
An increase in the amount of spousal support that is paid
An increase in the amount of child support that is paid
An increase in the number of divorces
Which of the following individuals is most likely to seek the services of a CDFA® professional?
a) John, age 45, earns $40,000 per year and lives in an apartment with his wife who earns
$25,000. Their only assets are checking and savings accounts totaling $5,000.
b) Mary, age 40, is a stay-at-home wife and her husband earns $150,000. They have assets valued at
$250,000. They have a mortgage of $80,000.
c) Henry, age 35, earns $40,000 and owns an IRA valued at $35,000. His wife earns
$45,000 and she has a 401(k) valued at $36,000.
d) Helen, age 30, is pregnant. Helen and her husband each earn $36,000. They have assets
with a value of $80,000.
b) Mary, age 40, is a stay-at-home wife and her husband earns $150,000. They have assets valued at
$250,000. They have a mortgage of $80,000.
joint income of $100,000 or greater and joint assets that exceed $100,000
Jane, a clinical social worker, has also been trained as a mediator. Which of the following is an
appropriate way to use her mediation training?
a) Jane is preparing court documents for clients.
b) Jane is working as an arbitrator.
c) Jane is mediating a divorce case referred to her by a friend.
d) Jane is mediating a divorce case for a friend.
c) Jane is mediating a divorce case referred to her by a friend.
Which of the following activities are appropriate for a mediator to do?
a) Provide legal advice.
b) Be an advocate for one party.
c) Act as a neutral third party.
d) Make a binding settlement.
c) Act as a neutral third party.
Which of the following is NOT an appropriate service that CDFA® professionals can provide?
a) Determine the financial impact of the proposed settlement.
, b) Provide litigation support relating to financial issues.
c) Prepare a report showing the financial impact of one spouse keeping the family home.
d) Prepare business valuations and analysis.
d) Prepare business valuations and analysis.
Susie, age 35, gave up her career to stay home with the children for 10 years. Which of the following
questions would be inappropriate for the CDFA® professional to ask her?
a) Will you return to the workforce?
b) What level of income can you expect to earn when you return to the workforce?
c) At what age would you like to retire?
d) How much spousal support do you need so that you do not have to work?
d) How much spousal support do you need so that you do not have to work?
It is not appropriate for the CDFA® professional to ask Susie how much
spousal support she would need if she does not return to work. Given her age
of 35, Susie should be expected to return to the work force—unless she suffers
from a medical condition that would prevent her from working or if her
children require care and it would not be cost-effective for her to work.
Which of the following individuals may be appointed by the court to help the spouses negotiate a
settlement?
a) An arbitrator
b) A judge
c) A mediator
d) A lawyer
Which of the following statements by a CDFA® professional would be considered providing legal advice?
a) "You will pay capital gains tax if you sell your house."
b) "You will be in better financial shape if you take the savings account."
c) "Your financial status in 10 years will be at this level if you have more maintenance."
d) "You should require that the house be sold immediately."
d) "You should require that the house be sold immediately."
Mary is working as a CDFA® professional for her client, Stephanie. Stephanie would prefer to pay only
one person to do as much as possible for her. What can Mary do for Stephanie that would NOT be a
conflict of interest with her duties as a CDFA® professional?
a) Provide financial planning advice
b) Prepare her tax returns
c) Testify as an expert witness
d) Prepare a business valuation
Q&A (Answered) With Complete Verified Solution,
100% Correct, Updated Fall 2024/2025.
In a divorce settlement, what mistake is commonly made by financial
professionals without proper training?
Considering the tax consequences of the sale of property
Considering investment returns
Considering inflation
Considering only an equal division of property
Considering only an equal division of property
Which of the following is a common mistake that divorcing couples make?
Failing to consider the tax consequences of an early withdrawal
from a retirement account
Dividing a joint checking account to obtain an equitable
distribution of assets
Using the cost basis to determine taxes on the sale of property
Failing to consider the taxes due on child support payments
Failing to consider the tax consequences of an early withdrawal from a retirement account
From a client's perspective and without regard to the cost, at which of the
following times should an individual hire a CDFA professional?
When considering getting a divorce
After meeting with an attorney
After filing a petition for divorce
Prior to a final judgment for divorce
When considering getting a divorce
Which of the following is NOT an appropriate service that CDFA professionals can provide?
Determine the financial impact of the proposed settlement.
Provide litigation support relating to financial issues.
Prepare a report showing the financial impact of one spouse
keeping the family home.
Prepare business valuations and analysis.
Prepare business valuations and analysis.
,Which of the following is NOT a reason for a CDFA professional to interview
clients?
To collect financial data
To develop a budget
To complete answers to interrogatories
To help them identify their financial goals, including retirement
objectives
To help them identify their financial goals, including retirement
objectives
Jacob is divorcing his wife, Andrea. Jacob has hired Michelle, a CDFA
professional, to work on his divorce case. Which of the following actions are
appropriate for Michelle?
Michelle will only need to analyze Jacob's financial information.
Michelle will only need to analyze Andrea's financial information.
Michelle will need to analyze Jacob's financial information and
audit Andrea's financial information.
Michelle will need to analyze the financial information for both
Jacob and Andrea.
Michelle will need to analyze the financial information for both
Jacob and Andrea.
An individual who is trained to calculate statistically risks, premiums, and life
expectancies for insurance and pension plans is referred to as a/an
_______________.
A ________________ is an individual who has been trained to assist
people in coming to an agreement.
A CDFA professional is able to give legal advice under which of the following
conditions?
The advice must be limited to the division of marital assets and
debts.
A CDFA professional is not able to give legal advice under any
conditions.
The CDFA professional must seek and obtain permission from the
client's lawyer before giving legal advice.
The advice must be limited to recommending levels of spousal
support.
A CDFA professional is not able to give legal advice under any
conditions.
,What impact have the "no-fault" divorce laws had on divorces in the United
States?
An increase in the number of divorces
A decrease in the number of divorces
An increase in the amount of spousal support that is paid
An increase in the amount of child support that is paid
An increase in the number of divorces
Which of the following individuals is most likely to seek the services of a CDFA® professional?
a) John, age 45, earns $40,000 per year and lives in an apartment with his wife who earns
$25,000. Their only assets are checking and savings accounts totaling $5,000.
b) Mary, age 40, is a stay-at-home wife and her husband earns $150,000. They have assets valued at
$250,000. They have a mortgage of $80,000.
c) Henry, age 35, earns $40,000 and owns an IRA valued at $35,000. His wife earns
$45,000 and she has a 401(k) valued at $36,000.
d) Helen, age 30, is pregnant. Helen and her husband each earn $36,000. They have assets
with a value of $80,000.
b) Mary, age 40, is a stay-at-home wife and her husband earns $150,000. They have assets valued at
$250,000. They have a mortgage of $80,000.
joint income of $100,000 or greater and joint assets that exceed $100,000
Jane, a clinical social worker, has also been trained as a mediator. Which of the following is an
appropriate way to use her mediation training?
a) Jane is preparing court documents for clients.
b) Jane is working as an arbitrator.
c) Jane is mediating a divorce case referred to her by a friend.
d) Jane is mediating a divorce case for a friend.
c) Jane is mediating a divorce case referred to her by a friend.
Which of the following activities are appropriate for a mediator to do?
a) Provide legal advice.
b) Be an advocate for one party.
c) Act as a neutral third party.
d) Make a binding settlement.
c) Act as a neutral third party.
Which of the following is NOT an appropriate service that CDFA® professionals can provide?
a) Determine the financial impact of the proposed settlement.
, b) Provide litigation support relating to financial issues.
c) Prepare a report showing the financial impact of one spouse keeping the family home.
d) Prepare business valuations and analysis.
d) Prepare business valuations and analysis.
Susie, age 35, gave up her career to stay home with the children for 10 years. Which of the following
questions would be inappropriate for the CDFA® professional to ask her?
a) Will you return to the workforce?
b) What level of income can you expect to earn when you return to the workforce?
c) At what age would you like to retire?
d) How much spousal support do you need so that you do not have to work?
d) How much spousal support do you need so that you do not have to work?
It is not appropriate for the CDFA® professional to ask Susie how much
spousal support she would need if she does not return to work. Given her age
of 35, Susie should be expected to return to the work force—unless she suffers
from a medical condition that would prevent her from working or if her
children require care and it would not be cost-effective for her to work.
Which of the following individuals may be appointed by the court to help the spouses negotiate a
settlement?
a) An arbitrator
b) A judge
c) A mediator
d) A lawyer
Which of the following statements by a CDFA® professional would be considered providing legal advice?
a) "You will pay capital gains tax if you sell your house."
b) "You will be in better financial shape if you take the savings account."
c) "Your financial status in 10 years will be at this level if you have more maintenance."
d) "You should require that the house be sold immediately."
d) "You should require that the house be sold immediately."
Mary is working as a CDFA® professional for her client, Stephanie. Stephanie would prefer to pay only
one person to do as much as possible for her. What can Mary do for Stephanie that would NOT be a
conflict of interest with her duties as a CDFA® professional?
a) Provide financial planning advice
b) Prepare her tax returns
c) Testify as an expert witness
d) Prepare a business valuation
