Cwmc Module 9: Divorce Competency Test
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This quiz is part of LFE Institute's CWMC (Certified Workplace Money Coaching) course. It will test your proficiency in the Divorce Module (Module 9) of the program. The questions are all multiple choice, and are designed to be a review of this Module. Let LFE know when you've successfully completed this test and are ready to begin the next Module.
Correct answers required for passing grade: 12/14
- 1.
Which of the following statements are financial myths about divorce? (check all that apply)
- A.
It’s cheaper to stay married than to divorce.
- B.
It’s cheaper to divorce than stay married.
- C.
The spouse who retains the home always comes out better financially.
- D.
All divorce attorneys charge comparable fees.
Correct Answer(s)
A. It’s cheaper to stay married than to divorce.
B. It’s cheaper to divorce than stay married.
C. The spouse who retains the home always comes out better financially.
D. All divorce attorneys charge comparable fees. -
- 2.
Which of the following statements would you suggest for cost-saving measures to someone thinking about divorcing?
- A.
Make a comprehensive list of all your assets, including retirement accounts.
- B.
Don’t worry about credit card debt; it will only affect your spouse.
- C.
Cash-in your IRA to fund the cost of your divorce.
- D.
Use the same attorney as your spouse.
- E.
None of the above are good suggestions.
Correct Answer
A. Make a comprehensive list of all your assets, including retirement accounts.Explanation
Making a comprehensive list of all your assets, including retirement accounts, is a good suggestion for cost-saving measures when thinking about divorcing because it allows you to have a clear understanding of your financial situation. This list will help you in negotiations and ensure that all assets are accounted for during the divorce process, potentially saving you from costly disputes or legal battles in the future.Rate this question:
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- 3.
Who needs written notification of changes in marital status due to a divorce? (check all that apply)
- A.
Life and health insurance companies
- B.
Stockbrokers
- C.
IRS
- D.
Your employer
- E.
None of the above
Correct Answer(s)
A. Life and health insurance companies
B. Stockbrokers
C. IRS
D. Your employerExplanation
Life and health insurance companies, stockbrokers, the IRS, and your employer all need written notification of changes in marital status due to a divorce. This is because these entities need to update their records and make any necessary changes to policies, accounts, or tax filings. By notifying them in writing, it ensures that the changes are properly documented and acknowledged.Rate this question:
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- 4.
What financial information is vital to have during a divorce process? (check all that apply)
- A.
Total amount owed (your debt)
- B.
Cash value of any insurance policies
- C.
All retirement benefits
- D.
Bank and investment balances
Correct Answer(s)
A. Total amount owed (your debt)
B. Cash value of any insurance policies
C. All retirement benefits
D. Bank and investment balancesExplanation
During a divorce process, it is vital to have information about the total amount owed (your debt) as it will determine the financial obligations and liabilities of each party. The cash value of any insurance policies is important to consider as it may be included in the division of assets. All retirement benefits are crucial to know as they may be subject to division or negotiation. Bank and investment balances are essential to understand the overall financial situation and to determine the distribution of assets.Rate this question:
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- 5.
Which of the following generally does NOT affect taxes for either party in a divorce?
- A.
Alimony
- B.
Child care credits
- C.
Timing of the divorce
- D.
Child support
- E.
None of the above; they all have tax consequences.
Correct Answer
D. Child supportExplanation
Child support generally does not affect taxes for either party in a divorce. Child support payments are not considered taxable income for the recipient, and they are not tax-deductible for the payer. This means that neither party needs to report child support payments on their tax returns, and it does not impact their tax liability. Alimony, on the other hand, is usually taxable income for the recipient and tax-deductible for the payer. Child care credits and the timing of the divorce can also have tax consequences depending on the specific circumstances.Rate this question:
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- 6.
When recovering from divorce, which Web sites are NOT recommended links? (check all that apply)
- A.
Www.Divorceinfo.com
- B.
Www.craigslist.org
- C.
Www.weather.com
- D.
Www.Divorcenet.com
- E.
Www.DivorceCentral.com
Correct Answer(s)
B. Www.craigslist.org
C. Www.weather.com -
- 7.
Every Money Coaching response contains which of the following? (check all that apply)
- A.
Recommendations on what the employee should or should not do
- B.
Disclaimer
- C.
Advice
- D.
Information written at a 10th-grade reading level
- E.
Unbiased information
Correct Answer(s)
B. Disclaimer
E. Unbiased informationExplanation
The correct answer for this question is "Disclaimer" and "Unbiased information". A disclaimer is included in every Money Coaching response to clarify that the information provided is not to be considered as professional advice. Unbiased information is also included to ensure that the responses are objective and not influenced by personal opinions or biases.Rate this question:
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- 8.
Before seeking divorce as a solution to financial problems, what steps can a couple take? (check all that apply)
- A.
Improve financial literacy since finances are a major factor in most family conflicts
- B.
Learn how and when to compromise
- C.
Consult a mutually trusted professional counselor
- D.
Communicate about money management styles
Correct Answer(s)
A. Improve financial literacy since finances are a major factor in most family conflicts
B. Learn how and when to compromise
C. Consult a mutually trusted professional counselor
D. Communicate about money management stylesExplanation
The steps a couple can take before seeking divorce as a solution to financial problems include improving financial literacy since finances are a major factor in most family conflicts, learning how and when to compromise, consulting a mutually trusted professional counselor, and communicating about money management styles. These steps are important because they can help the couple gain a better understanding of their financial situation, learn to work together and find common ground, seek professional guidance and support, and have open and honest conversations about their money management approaches.Rate this question:
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- 9.
Which of these strategies will NOT help build a solid financial foundation during and after a divorce?
- A.
Arrange a stress-free vacation
- B.
Get professional financial help
- C.
Know social security options
- D.
Close credit cards in spouse's name
- E.
Take steps to plan for a stronger financial future
Correct Answer
A. Arrange a stress-free vacation -
- 10.
A divorce is always the best solution if:
- A.
The spouse is putting too much on credit cards
- B.
The spouse spends too much on himself/herself
- C.
The spouse doesn’t want to save for the future
- D.
The spouse has a poor credit rating
- E.
None of the above. It’s never our place to recommend a divorce.
Correct Answer
E. None of the above. It’s never our place to recommend a divorce.Explanation
The correct answer is "None of the above. It’s never our place to recommend a divorce." This answer is supported by the statement that it is never the place of someone else to recommend a divorce. The previous statements about credit card usage, spending habits, saving for the future, and credit rating are not valid reasons to recommend a divorce as they do not necessarily indicate that a divorce is the best solution. Ultimately, the decision to divorce should be made by the individuals involved based on their own circumstances and personal judgment.Rate this question:
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- 11.
Which of the following is NOT a red flag or potential divorce scam?
- A.
Foreign countries advertising quick and simple divorces
- B.
Any attorney who advertises in the yellow pages
- C.
Lawyers who use the Internet as the only client communication method
- D.
A business that claims to take care of all necessary divorce proceedings by only mailing or wiring a set fee
- E.
A “do-it-yourself” plan for a contested divorce
Correct Answer
B. Any attorney who advertises in the yellow pagesExplanation
This answer is correct because attorneys advertising in the yellow pages is not a red flag or potential divorce scam. While it may not be the most modern or effective method of advertising, it is a legitimate way for attorneys to promote their services. The other options, such as foreign countries advertising quick divorces, lawyers relying solely on the internet for client communication, businesses claiming to handle all divorce proceedings by mail or wire, and a "do-it-yourself" plan for a contested divorce, all have red flags or potential for scams.Rate this question:
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- 12.
On average, statistics show it takes how long to financially recover from a divorce?
- A.
6 months
- B.
1 year
- C.
5 years
- D.
7 years
- E.
10 years
Correct Answer
C. 5 yearsExplanation
On average, it takes about 5 years to financially recover from a divorce. This is because divorce often involves the division of assets and debts, which can lead to financial instability. Additionally, individuals may experience a decrease in income and an increase in expenses after a divorce, which can further prolong the recovery period. It may take time to rebuild one's financial stability and adjust to the new financial circumstances after a divorce, leading to the average recovery period of 5 years.Rate this question:
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- 13.
For editing purposes, what is the preferred industry standard for spaces between sentences (e.g., after a period and before the next sentence)?
- A.
0
- B.
1
- C.
2
- D.
3
- E.
Whatever the author decides is correct.
Correct Answer
B. 1Explanation
The preferred industry standard for spaces between sentences is to have one space after a period and before the next sentence. This convention has been widely accepted and followed in various industries, including publishing, journalism, and academia. It helps improve readability and ensures consistency in written materials.Rate this question:
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- 14.
Why should an employer care if employees are going through a divorce? (check all that apply)
- A.
It is a huge distraction for the employee
- B.
Employees will miss work for attorney and court meetings
- C.
Employee may be depressed and more susceptible to health problems
- D.
HR has to get involved in completing court, employment, and retirement paperwork
Correct Answer(s)
A. It is a huge distraction for the employee
B. Employees will miss work for attorney and court meetings
C. Employee may be depressed and more susceptible to health problems
D. HR has to get involved in completing court, employment, and retirement paperworkExplanation
An employer should care if employees are going through a divorce because it can be a huge distraction for the employee, affecting their focus and productivity at work. Additionally, employees may need to miss work for attorney and court meetings, leading to potential attendance and scheduling issues. Divorce can also have a significant impact on an employee's mental health, potentially leading to depression and making them more susceptible to health problems. Furthermore, HR may need to get involved in completing various paperwork related to court, employment, and retirement, adding to their workload and responsibilities.Rate this question:
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Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
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Current Version
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Jul 15, 2024Quiz Edited by
ProProfs Editorial Team -
May 06, 2009Quiz Created by
Alice Whinnery
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