CDFA Module 2 Exam Questions And Answers
Verified 100% Correct
Contested Divorce - ANSWER- Any case where the judge must decide one or more
issues that are not agreed to by the parties. All cases are considered contested until all
issues have been agreed to.
Corroborative Witness - ANSWER- A person who testifies for one of the parties and
backs up
their story.
Cost Basis - ANSWER- The original value of an asset for tax purposes.
Court Order - ANSWER- A written instruction from the court carrying the weight of law.
Orders must be in writing. Anyone who knowingly violates a court order can be held in
contempt of court.
Coverture Fraction - ANSWER- Used to separate the portion of the benefits in a
pension plan earned during marriage from the portion earned outside of the marriage.
Under this approach, the alternate payee's share of the benefit is based on the
participant's benefit at the participant's date of retirement (when it is highest). Once the
participant's final benefit is calculated, the marital portion is determined by multiplying
the accrued benefit by a coverture fraction: the number of years married while earning
the pension divided by the total number of years of service under the plan until
retirement. The alternate payee would then be entitled to half of the marital portion of
the ultimate pension.
Credit - ANSWER- The measure of trustworthiness of repayment of a loan based on
income,
past credit history, assets, and liabilities. It should be noted that after the divorce the
former spouses' past credit history might affect the ex-spouse.
Cross Examination - ANSWER- The questioning of a witness presented by the
opposing
party on trial or at a deposition. The purpose is to test the truth of that testimony.
Curriculum Vitae - ANSWER- A resume that is prepared by an expert witness to show
their
qualifications in their area of expertise.
Custodial Parent - ANSWER- The parent with whom the child(ren) live the majority
of the
,time. A distinction should be made between a Legal Guardian (who has the ability to
make legal decisions on behalf of the child) and the Custodial Parent: Technically, a
Legal Guardian may have no custody rights at all.
Custody - ANSWER- Usually refers to the parent's right to (1) have a child live with that
parent and (2) make decisions concerning the child. Exact meaning varies greatly in
different states. The court awards custody to one parent, which is called Sole Custody,
or grants Joint Custody, allowing both parents, the right to physical care, control, or
direct physical supervision of the children.
Debt - ANSWER- Services, money, or goods owed by one party to another.
Decree - ANSWER- The final ruling of the judge on an action for divorce, legal
separation, or
annulment. Decree has the same meaning as judgment.
Decree Nisi / Rule Nisi - ANSWER- An order by the court stating that a conditional
divorce
will become absolute by a certain date, unless a party contests the order.
Default - ANSWER- A party's failure to ANSWERWER a complaint, motion, or petition.
Defendant - ANSWER- The partner in a marriage against whom a divorce complaint is
filed.
Defendant has the same meaning as respondent.
Deferred Division or Future Share Method - ANSWER- One of three methods that
can be
used to divide pension benefits. No present value is determined. Each spouse is
awarded a share of the benefits if and when they are paid.
Deposition - ANSWER- The testimony of a witness taken out of court under oath and
reduced to writing. Discovery depositions are the most common and are taken for the
purpose of discovering the facts upon which a party's claim is based or discovering the
substance of a witness's testimony prior to trial. The deposition may be used to
discredit a witness if he changes his testimony.
Defined Benefit Plan - ANSWER- Type of employer-sponsored pension plan that
promises to
pay the employee a certain amount per month at retirement time. It does not have a
cash value today.
,Direct Examination - ANSWER- The initial questioning of a witness by the attorney
who
called him or her to the stand.
Discovery - ANSWER- Procedures followed by attorneys in order to determine the
nature,
scope, and credibility of the opposing party's claim. Discovery procedures include
depositions, written interrogatories, and notices to produce documentation relating to
issues relevant to the case.
Dismissal - ANSWER- Occurs when a party voluntarily drops the case (in some
states) or
when a judge finds that a case totally lacks merit.
Dissolution of Marriage - ANSWER- The legal process of ending a marriage. In most
states,
the legal term for divorce.
Division of Assets - ANSWER- This is dependent upon the statutes governing
property
division in the state where the divorcing couple resides. States have adopted two
property division statutes: community property and equitable distribution.
Divorce - ANSWER- The legal proceeding by which a marriage is legally terminated. It
may be contested (where one party denies the allegation or wants to keep the marriage
in place) or uncontested.
Divorce Expenses - ANSWER- Costs incurred during the divorce process that can
include court filing fees, appraisals, mediation fees, legal fees, accounting, financial
planning, counseling, QDRO preparation, and tax preparation.
Domestic Violence - ANSWER- The physical abuse of one family member by another.
Double Dipping - ANSWER- When one spouse gets paid twice from the same asset.
Earned Income Tax Credit - ANSWER- (IRC §32) A custodial parent is entitled
to an
increased tax income credit if he or she has a qualifying child that meets IRS
requirements. Also see Section 32 below.
Emancipation - ANSWER- The point at which a minor child comes of age. Children are
emancipated in most states upon reaching the age of 18, 19, or 21, or upon marriage,
full-time employment, graduation from high school, or entering the armed services.
, Emancipation is the point where parents have no further legal or financial obligations
for a child's support.
Employee Retirement Income Security Act of 1974 (ERISA) - ANSWER- A federal law
that sets minimum standards for pension plANSWER in private industry. ERISA does
not require any employer to establish a pension plan - it only requires that those who
establish plANSWER must meet certain minimum standards. The law generally does
not specify how much money a participant must be paid as a benefit. ERISA requires
plANSWER to regularly provide participants with information about the plan including
information about plan features and funding; sets minimum standards for participation,
vesting, benefit accrual, and funding; requires accountability of plan fiduciaries; and
gives participants the right to sue for benefits and breaches of fiduciary duty. ERISA
also guarantees payment of certain benefits through the Pension Benefit Guaranty
Corporation, a federally chartered corporation, if a defined plan is terminated.
Equitable - ANSWER- MeANSWER fair; does not necessarily mean equal.
Equitable Division of Property - ANSWER- Method of dividing property based on a
number of considerations (such as length of marriage, differences in age, wealth,
earning potential, and health of partners involved) to achieve an equitable and fair
distribution—not necessarily an equal one. Eight of the western states use a different
method of division called Community Property.
Evidence - ANSWER- Proof presented at a hearing, including testimony,
documents, or
objects. Exhibits: Tangible things presented at trial as evidence.
Expert Witness - ANSWER- In court proceedings, the expert witness is the
professional
whose testimony helps a judge reach a decision.
File/Filing - ANSWER- To place a document in the official custody of some public
official. Every case brought to court must be filed with the court clerk in order for the
court to take action upon the case. A case is filed when a party (plaintiff) writes a
written complaint and brings it to the clerk, who files it. The plaintiff must also serve the
opposing party with a copy of the complaint.
Financial Affidavit - ANSWER- Key document used to collect financial data; in some
states, it
may be known as a "Financial Statement" and may use a standard form. This document
becomes part of the record of documents that are filed with the court. Included in the l
Financial Affidavit are all income and deductions from income, all living expenses, al
assets, and all liabilities.
Verified 100% Correct
Contested Divorce - ANSWER- Any case where the judge must decide one or more
issues that are not agreed to by the parties. All cases are considered contested until all
issues have been agreed to.
Corroborative Witness - ANSWER- A person who testifies for one of the parties and
backs up
their story.
Cost Basis - ANSWER- The original value of an asset for tax purposes.
Court Order - ANSWER- A written instruction from the court carrying the weight of law.
Orders must be in writing. Anyone who knowingly violates a court order can be held in
contempt of court.
Coverture Fraction - ANSWER- Used to separate the portion of the benefits in a
pension plan earned during marriage from the portion earned outside of the marriage.
Under this approach, the alternate payee's share of the benefit is based on the
participant's benefit at the participant's date of retirement (when it is highest). Once the
participant's final benefit is calculated, the marital portion is determined by multiplying
the accrued benefit by a coverture fraction: the number of years married while earning
the pension divided by the total number of years of service under the plan until
retirement. The alternate payee would then be entitled to half of the marital portion of
the ultimate pension.
Credit - ANSWER- The measure of trustworthiness of repayment of a loan based on
income,
past credit history, assets, and liabilities. It should be noted that after the divorce the
former spouses' past credit history might affect the ex-spouse.
Cross Examination - ANSWER- The questioning of a witness presented by the
opposing
party on trial or at a deposition. The purpose is to test the truth of that testimony.
Curriculum Vitae - ANSWER- A resume that is prepared by an expert witness to show
their
qualifications in their area of expertise.
Custodial Parent - ANSWER- The parent with whom the child(ren) live the majority
of the
,time. A distinction should be made between a Legal Guardian (who has the ability to
make legal decisions on behalf of the child) and the Custodial Parent: Technically, a
Legal Guardian may have no custody rights at all.
Custody - ANSWER- Usually refers to the parent's right to (1) have a child live with that
parent and (2) make decisions concerning the child. Exact meaning varies greatly in
different states. The court awards custody to one parent, which is called Sole Custody,
or grants Joint Custody, allowing both parents, the right to physical care, control, or
direct physical supervision of the children.
Debt - ANSWER- Services, money, or goods owed by one party to another.
Decree - ANSWER- The final ruling of the judge on an action for divorce, legal
separation, or
annulment. Decree has the same meaning as judgment.
Decree Nisi / Rule Nisi - ANSWER- An order by the court stating that a conditional
divorce
will become absolute by a certain date, unless a party contests the order.
Default - ANSWER- A party's failure to ANSWERWER a complaint, motion, or petition.
Defendant - ANSWER- The partner in a marriage against whom a divorce complaint is
filed.
Defendant has the same meaning as respondent.
Deferred Division or Future Share Method - ANSWER- One of three methods that
can be
used to divide pension benefits. No present value is determined. Each spouse is
awarded a share of the benefits if and when they are paid.
Deposition - ANSWER- The testimony of a witness taken out of court under oath and
reduced to writing. Discovery depositions are the most common and are taken for the
purpose of discovering the facts upon which a party's claim is based or discovering the
substance of a witness's testimony prior to trial. The deposition may be used to
discredit a witness if he changes his testimony.
Defined Benefit Plan - ANSWER- Type of employer-sponsored pension plan that
promises to
pay the employee a certain amount per month at retirement time. It does not have a
cash value today.
,Direct Examination - ANSWER- The initial questioning of a witness by the attorney
who
called him or her to the stand.
Discovery - ANSWER- Procedures followed by attorneys in order to determine the
nature,
scope, and credibility of the opposing party's claim. Discovery procedures include
depositions, written interrogatories, and notices to produce documentation relating to
issues relevant to the case.
Dismissal - ANSWER- Occurs when a party voluntarily drops the case (in some
states) or
when a judge finds that a case totally lacks merit.
Dissolution of Marriage - ANSWER- The legal process of ending a marriage. In most
states,
the legal term for divorce.
Division of Assets - ANSWER- This is dependent upon the statutes governing
property
division in the state where the divorcing couple resides. States have adopted two
property division statutes: community property and equitable distribution.
Divorce - ANSWER- The legal proceeding by which a marriage is legally terminated. It
may be contested (where one party denies the allegation or wants to keep the marriage
in place) or uncontested.
Divorce Expenses - ANSWER- Costs incurred during the divorce process that can
include court filing fees, appraisals, mediation fees, legal fees, accounting, financial
planning, counseling, QDRO preparation, and tax preparation.
Domestic Violence - ANSWER- The physical abuse of one family member by another.
Double Dipping - ANSWER- When one spouse gets paid twice from the same asset.
Earned Income Tax Credit - ANSWER- (IRC §32) A custodial parent is entitled
to an
increased tax income credit if he or she has a qualifying child that meets IRS
requirements. Also see Section 32 below.
Emancipation - ANSWER- The point at which a minor child comes of age. Children are
emancipated in most states upon reaching the age of 18, 19, or 21, or upon marriage,
full-time employment, graduation from high school, or entering the armed services.
, Emancipation is the point where parents have no further legal or financial obligations
for a child's support.
Employee Retirement Income Security Act of 1974 (ERISA) - ANSWER- A federal law
that sets minimum standards for pension plANSWER in private industry. ERISA does
not require any employer to establish a pension plan - it only requires that those who
establish plANSWER must meet certain minimum standards. The law generally does
not specify how much money a participant must be paid as a benefit. ERISA requires
plANSWER to regularly provide participants with information about the plan including
information about plan features and funding; sets minimum standards for participation,
vesting, benefit accrual, and funding; requires accountability of plan fiduciaries; and
gives participants the right to sue for benefits and breaches of fiduciary duty. ERISA
also guarantees payment of certain benefits through the Pension Benefit Guaranty
Corporation, a federally chartered corporation, if a defined plan is terminated.
Equitable - ANSWER- MeANSWER fair; does not necessarily mean equal.
Equitable Division of Property - ANSWER- Method of dividing property based on a
number of considerations (such as length of marriage, differences in age, wealth,
earning potential, and health of partners involved) to achieve an equitable and fair
distribution—not necessarily an equal one. Eight of the western states use a different
method of division called Community Property.
Evidence - ANSWER- Proof presented at a hearing, including testimony,
documents, or
objects. Exhibits: Tangible things presented at trial as evidence.
Expert Witness - ANSWER- In court proceedings, the expert witness is the
professional
whose testimony helps a judge reach a decision.
File/Filing - ANSWER- To place a document in the official custody of some public
official. Every case brought to court must be filed with the court clerk in order for the
court to take action upon the case. A case is filed when a party (plaintiff) writes a
written complaint and brings it to the clerk, who files it. The plaintiff must also serve the
opposing party with a copy of the complaint.
Financial Affidavit - ANSWER- Key document used to collect financial data; in some
states, it
may be known as a "Financial Statement" and may use a standard form. This document
becomes part of the record of documents that are filed with the court. Included in the l
Financial Affidavit are all income and deductions from income, all living expenses, al
assets, and all liabilities.
