Planning Beginner: Financial Considerations in Divorce

Test your knowledge

Choose wisely. There is only one correct answer to each question.

Keep studying!

Review your answers below to learn more.

An advantage of alimony is that in most states the monthly amount is set for life and not subject to change.

True

False

False. In most states, alimony laws typically allow those paying alimony to modify the terms later if circumstances change.

When setting child support payments, the court has complete discretion under the law.

True

False

False. The court must refer to child support guidelines provided by law.

Which of the following is true regarding alimony negotiations?

It is often wise to seek the services of a financial planner in making financial projections and calculations.

Alimony recipients should keep in mind that they will likely become ineligible to collect state unemployment benefits.

Alimony is determined primarily by reference to factors provided by state law, so the parties have little flexibility in their negotiations.

It is often wise to seek the services of a financial planner in making financial projections and calculations. Very often, attorneys lack the necessary financial expertise.

Regarding individual retirement accounts and divorce, which of the following is true of the beneficiary designation forms?

They determine where an IRA goes upon the owner's death

They are automatically revised by the court order granting a divorce

Both the above

None of the above

They determine where an IRA goes upon the owner's death. The court does not control assets that have designated beneficiaries.

It is a good idea to consider which of the following prior to your divorce?

What to do with the marital home

Continued health insurance coverage

Changing beneficiary designation forms

All the above

All the above. All these issues should be considered prior to divorce.