CDFA Module 2 EXAM AND PRACTICE EXAM NEWEST
ACTUAL EXAM COMPLETE 400 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY
GRADED A+
Asset most likely to be couple's most valuable? - CORRECT ANSWER
Family Home
Separate Property - CORRECT ANSWER Property a person brings into
the marriage; inherits during the marriage; or receives as a gift during
the marriage.
Marital Property - CORRECT ANSWER Everything acquired during the
marriage, regardless of which spouse owns the property (including the
increase in value of property in some states).
Key documents for collecting financial information - CORRECT
ANSWER financial affidavit, and asset/liability comparison worksheet
Ways in which assets are traditionally hidden: - CORRECT ANSWER
1) person denies existence of asset; 2) assets transferred to third
party; 3) person claims asset was lost or dissipated; or 4) person
creates false debt
First place to look for hidden assets? - CORRECT ANSWER Tax
returns; good idea to look over past 5 years.
Appraisal - CORRECT ANSWER procedure for determining FMV of
asset when it is sold or divided
Arbitration - CORRECT ANSWER submitting dispute to someone who
is not a judge; decision is usually binding and final
Arrearages - CORRECT ANSWER Difference between amount of
spousal/child support paid, and amount required under court order
,Assets - CORRECT ANSWER
Assets - CORRECT ANSWER Cash, property, investments, goodwill,
and other items of value (as defined by state law) that appear on a
balance sheet indicating the net worth of an individual or a business.
Asset Inventory - CORRECT ANSWER Collection of financial data that
includes information on assets and liabilities. Key documents used are
the Financial Affidavit and Asset/Liability Comparison worksheet.
Bankruptcy - CORRECT ANSWER See Chapter 7 Bankruptcy and
Chapter 13 Bankruptcy.
Best Interest of the Child - CORRECT ANSWER A discretionary legal
standard used by judges when making decisions about custody,
visitation, and support for a child when the parents are divorcing.
Bunching Deductions - CORRECT ANSWER Tax strategy that involves
"bunching" itemized deductions so that they are high in one year and
low the following year. The standard deduction can be used on the
alternate year.
Career Asset - CORRECT ANSWER Assets tied to one's career (health
insurance, stock options, retirement plans, etc.)
Certified Business Appraiser (CBA) - CORRECT ANSWER An
individual who is certified in business valuations. Change of Venue: A
change of judges or geographical location, requested by a party to the
action who feels that the change is justified by state law.
Chapter 7 Bankruptcy - CORRECT ANSWER Type of bankruptcy filing
that allows you to liquidate all of your assets and use the proceeds to
pay off your debts, erasing your debts that cannot be paid off in full. All
unsecured debts are forgiven and all assets over statutory minimum
protected amounts are forfeited.
,Chapter 13 Bankruptcy - CORRECT ANSWER Type of bankruptcy
filing that allows you to develop a pay-off plan over a three-year
period. Some of the debts may be discharged.
Childcare Credit - CORRECT ANSWER (dependency exemption) a
nonrefundable childcare tax credit available to the custodial parent
who pays for child or dependent care expenses so that they can be
gainfully employed.
Child Contingency Rule - CORRECT ANSWER States that if any
amount of spousal support specified in the divorce decree is reduced:
(a) upon the happening of any contingency related to the child; or (b)
at a time that can be clearly associated with a contingency related to
the child, then the amount of the reduction will be treated as child
support, rather than spousal support. These payments will be
considered child support when the payments begin. (IRS Code Section
71(c)(2))
Child Support - CORRECT ANSWER The amount of money paid by a
non-custodial parent to the custodial parent for a child's day-to-day
expenses and other special needs. Each state is required by Congress
to have written child support guidelines and enforcement procedures.
Child Support Guidelines - CORRECT ANSWER A series of
mathematical formulas used to calculate the amount of child support
to be paid in some cases. Congress has mandated that states adopt
child support guidelines and support enforcement procedures.
COBRA - CORRECT ANSWER Consolidated Omnibus Budget
Reconciliation Act (COBRA) law passed in 1986. It allows an ex-spouse
to continue to receive health insurance coverage from his/her former
spouse's employer if the employer has at least 20 employees, for up to
three years after the divorce. Premiums for this coverage are typically
higher than when they were covered under the employer's plan. It
should be noted that the normal COBRA provision states that if an
employee leaves or is fired from a job, he or she can get health
insurance from that company for 18 months. However, in the case of a
divorce it is extended to three years or 36 months.
, Collaborative Divorce - CORRECT ANSWER A team approach to
divorce in which divorcing couples obtain professional help from
specialists in the legal, financial, and mental health fields; when
needed, additional professionals (including child/parenting experts)
may be called in to help the couple settle their case.
Collaborative Law - CORRECT ANSWER Collaborative Law is a new
dispute resolution model in which each party retains their own
attorney who has gone through specialized "Collaborative Law"
training. The lawyer's only job is to help settle the dispute. All parties
agree to work together respectfully, honestly, and in good faith to try
to find "win-win" solutions to the legitimate needs of both parties. No
one may go to court, or even threaten to do so. If that should occur,
the Collaborative Law process terminates and both lawyers are
disqualified from any further involvement in the case.
Collusion - CORRECT ANSWER An agreement between two or more
persons where one of the parties brings false charges against the
other. In a divorce case, the husband and wife may agree to use
adultery as a ground in order to obtain divorce more quickly, knowing
full well that adultery was not committed. Collusion is illegal.
Common Law Marriage - CORRECT ANSWER A judicially recognized
marriage in some states, usually based on cohabitation where no
formal marriage ceremony has taken place. See page 35 for more
details.
Community Property - CORRECT ANSWER In community property
states, any property not deemed "separate" (i.e., owned before the
marriage or obtained by gift or inheritance) is "community" property
and will likely be subject to a 50/50 division. Any property acquired in
a community property state retains its community property status no
matter where the couple moves. There are currently eight states that
have adopted community property laws: Arizona, California, Idaho,
Louisiana, Nevada, New Mexico, Texas, and Washington. Alaska has
an optional community property act (AS 34.77.090), and Wisconsin is
essentially a community property state, but there are exceptions to
ACTUAL EXAM COMPLETE 400 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY
GRADED A+
Asset most likely to be couple's most valuable? - CORRECT ANSWER
Family Home
Separate Property - CORRECT ANSWER Property a person brings into
the marriage; inherits during the marriage; or receives as a gift during
the marriage.
Marital Property - CORRECT ANSWER Everything acquired during the
marriage, regardless of which spouse owns the property (including the
increase in value of property in some states).
Key documents for collecting financial information - CORRECT
ANSWER financial affidavit, and asset/liability comparison worksheet
Ways in which assets are traditionally hidden: - CORRECT ANSWER
1) person denies existence of asset; 2) assets transferred to third
party; 3) person claims asset was lost or dissipated; or 4) person
creates false debt
First place to look for hidden assets? - CORRECT ANSWER Tax
returns; good idea to look over past 5 years.
Appraisal - CORRECT ANSWER procedure for determining FMV of
asset when it is sold or divided
Arbitration - CORRECT ANSWER submitting dispute to someone who
is not a judge; decision is usually binding and final
Arrearages - CORRECT ANSWER Difference between amount of
spousal/child support paid, and amount required under court order
,Assets - CORRECT ANSWER
Assets - CORRECT ANSWER Cash, property, investments, goodwill,
and other items of value (as defined by state law) that appear on a
balance sheet indicating the net worth of an individual or a business.
Asset Inventory - CORRECT ANSWER Collection of financial data that
includes information on assets and liabilities. Key documents used are
the Financial Affidavit and Asset/Liability Comparison worksheet.
Bankruptcy - CORRECT ANSWER See Chapter 7 Bankruptcy and
Chapter 13 Bankruptcy.
Best Interest of the Child - CORRECT ANSWER A discretionary legal
standard used by judges when making decisions about custody,
visitation, and support for a child when the parents are divorcing.
Bunching Deductions - CORRECT ANSWER Tax strategy that involves
"bunching" itemized deductions so that they are high in one year and
low the following year. The standard deduction can be used on the
alternate year.
Career Asset - CORRECT ANSWER Assets tied to one's career (health
insurance, stock options, retirement plans, etc.)
Certified Business Appraiser (CBA) - CORRECT ANSWER An
individual who is certified in business valuations. Change of Venue: A
change of judges or geographical location, requested by a party to the
action who feels that the change is justified by state law.
Chapter 7 Bankruptcy - CORRECT ANSWER Type of bankruptcy filing
that allows you to liquidate all of your assets and use the proceeds to
pay off your debts, erasing your debts that cannot be paid off in full. All
unsecured debts are forgiven and all assets over statutory minimum
protected amounts are forfeited.
,Chapter 13 Bankruptcy - CORRECT ANSWER Type of bankruptcy
filing that allows you to develop a pay-off plan over a three-year
period. Some of the debts may be discharged.
Childcare Credit - CORRECT ANSWER (dependency exemption) a
nonrefundable childcare tax credit available to the custodial parent
who pays for child or dependent care expenses so that they can be
gainfully employed.
Child Contingency Rule - CORRECT ANSWER States that if any
amount of spousal support specified in the divorce decree is reduced:
(a) upon the happening of any contingency related to the child; or (b)
at a time that can be clearly associated with a contingency related to
the child, then the amount of the reduction will be treated as child
support, rather than spousal support. These payments will be
considered child support when the payments begin. (IRS Code Section
71(c)(2))
Child Support - CORRECT ANSWER The amount of money paid by a
non-custodial parent to the custodial parent for a child's day-to-day
expenses and other special needs. Each state is required by Congress
to have written child support guidelines and enforcement procedures.
Child Support Guidelines - CORRECT ANSWER A series of
mathematical formulas used to calculate the amount of child support
to be paid in some cases. Congress has mandated that states adopt
child support guidelines and support enforcement procedures.
COBRA - CORRECT ANSWER Consolidated Omnibus Budget
Reconciliation Act (COBRA) law passed in 1986. It allows an ex-spouse
to continue to receive health insurance coverage from his/her former
spouse's employer if the employer has at least 20 employees, for up to
three years after the divorce. Premiums for this coverage are typically
higher than when they were covered under the employer's plan. It
should be noted that the normal COBRA provision states that if an
employee leaves or is fired from a job, he or she can get health
insurance from that company for 18 months. However, in the case of a
divorce it is extended to three years or 36 months.
, Collaborative Divorce - CORRECT ANSWER A team approach to
divorce in which divorcing couples obtain professional help from
specialists in the legal, financial, and mental health fields; when
needed, additional professionals (including child/parenting experts)
may be called in to help the couple settle their case.
Collaborative Law - CORRECT ANSWER Collaborative Law is a new
dispute resolution model in which each party retains their own
attorney who has gone through specialized "Collaborative Law"
training. The lawyer's only job is to help settle the dispute. All parties
agree to work together respectfully, honestly, and in good faith to try
to find "win-win" solutions to the legitimate needs of both parties. No
one may go to court, or even threaten to do so. If that should occur,
the Collaborative Law process terminates and both lawyers are
disqualified from any further involvement in the case.
Collusion - CORRECT ANSWER An agreement between two or more
persons where one of the parties brings false charges against the
other. In a divorce case, the husband and wife may agree to use
adultery as a ground in order to obtain divorce more quickly, knowing
full well that adultery was not committed. Collusion is illegal.
Common Law Marriage - CORRECT ANSWER A judicially recognized
marriage in some states, usually based on cohabitation where no
formal marriage ceremony has taken place. See page 35 for more
details.
Community Property - CORRECT ANSWER In community property
states, any property not deemed "separate" (i.e., owned before the
marriage or obtained by gift or inheritance) is "community" property
and will likely be subject to a 50/50 division. Any property acquired in
a community property state retains its community property status no
matter where the couple moves. There are currently eight states that
have adopted community property laws: Arizona, California, Idaho,
Louisiana, Nevada, New Mexico, Texas, and Washington. Alaska has
an optional community property act (AS 34.77.090), and Wisconsin is
essentially a community property state, but there are exceptions to
