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Question 1
Larry and Brenda live in Washington, a community property state. Larry acquired stock in his family's business as follows: 25% before the marriage, 25% during the marriage, and 50% after he filed for divorce. In a property distribution, how much would Brenda receive?
Correct Generally, both the husband and wife are deemed to have an undivided, equal, present vested interest in each item of community property. Property acquired before the marriage or after the dissolution of the marriage is separate property and not subject to community property laws. Here, the only portion Larry received during the marriage was 25% of the family business. As such, Brenda would be entitled to one half of that interest.
Incorrect! Generally, both the husband and wife are deemed to have an undivided, equal, present vested interest in each item of community property. Property acquired before the marriage or after the dissolution of the marriage is separate property and not subject to community property laws. Here, the only portion Larry received during the marriage was 25% of the family business. As such, Brenda would be entitled to one half of that interest.
Correct
Incorrect!
Correct
Incorrect!
Correct
Incorrect!
Question 2
Larry and Brenda live in Washington, a community property state. Larry inherited stock in his family's business as follows: 25% before the marriage (from his deceased uncle), 25% during the marriage (from his deceased aunt) and 50% after he filed for divorce (from his deceased grandfather). In a property distribution, how much would Brenda receive?
Correct
Incorrect!
Correct Generally, both the husband and wife are deemed to have an undivided, equal, present vested interest in each item of community property. Nevertheless, property acquired through gift or inheritance is separate property. Here, the business interests he received were from an inheritance. As such, Brenda would not be entitled to anything.
Incorrect! Generally, both the husband and wife are deemed to have an undivided, equal, present vested interest in each item of community property. Nevertheless, property acquired through gift or inheritance is separate property. Here, the business interests he received were from an inheritance. As such, Brenda would not be entitled to anything.
Correct
Incorrect!
Correct
Incorrect!
Question 3
Jack has $50,000 in a money market account he has owned since before his marriage to Jill. Jill, full of vengeance, wants the account to be part of their equitable distribution settlement. What will result?
Correct
Incorrect!
Correct
Incorrect!
Correct
Incorrect!
Correct Like under community property laws, separate property acquired before the marriage or by gift or inheritance during the marriage is not divided upon divorce. Here, since Jack owned the account prior to his marriage to Jill, he gets to keep the account.
Incorrect! Like under community property laws, separate property acquired before the marriage or by gift or inheritance during the marriage is not divided upon divorce. Here, since Jack owned the account prior to his marriage to Jill, he gets to keep the account.
Question 4
Chloe brings a divorce action against her husband, Dustin, who is a successful plastic surgeon. She caught him cheating on her with one of the nurses at the hospital. She had aspirations of becoming a nurse; however, she gave up that dream to work as a school teacher to help put him through medical school. She seeks equitable distribution of both his professional license and the value of his practice. Furthermore, she seeks additional alimony based on his increased income from entering a lucrative private practice group of doctors. What will the court grant?
Correct
Incorrect!
Correct
Incorrect!
Correct
Incorrect!
Correct Most jurisdictions do not recognize a professional degree as marital property subject to equitable distribution. Yet, if one spouse contributed to paying for the other spouse's education, that spouse might be entitled to reimbursement for the contributions. Conversely, professional goodwill-the enhanced earning capacity that comes from a professional reputation-is considered marital property that may be equitably distributed. Alimony awards are generally based upon the needs and abilities of each party, taking into account several factors. Here, Chloe paid for part of Dustin's education; therefore, she should receive reimbursement for those contributions. The rehabilitative alimony (probably more appropriate since she can be re-educated for a new, self-supporting career) takes into account Dustin's earning capacity; therefore, it would be "double dipping" to also award her an equitable distribution from the same pot (namely, the value of the practice).
Incorrect! Most jurisdictions do not recognize a professional degree as marital property subject to equitable distribution. Yet, if one spouse contributed to paying for the other spouse's education, that spouse might be entitled to reimbursement for the contributions. Conversely, professional goodwill-the enhanced earning capacity that comes from a professional reputation-is considered marital property that may be equitably distributed. Alimony awards are generally based upon the needs and abilities of each party, taking into account several factors. Here, Chloe paid for part of Dustin's education; therefore, she should receive reimbursement for those contributions. The rehabilitative alimony (probably more appropriate since she can be re-educated for a new, self-supporting career) takes into account Dustin's earning capacity; therefore, it would be "double dipping" to also award her an equitable distribution from the same pot (namely, the value of the practice).
Question 5
Dan worked for the telephone company. When he separated from his wife Fran, he had accumulated 72 of 78 points needed for his retirement benefits to vest. Fran petitioned for an equitable distribution of the non-vested benefits. What will result?
Correct
Incorrect!
Correct
Incorrect!
Correct Although the receipt of non-vested benefits may be uncertain, both vested and non-vested pension rights are now readily recognized as property subject to distribution. To determine the amount distributable if the pension rights are non-vested, the court would calculate the "present value" of the future pension benefits.
Incorrect! Although the receipt of non-vested benefits may be uncertain, both vested and non-vested pension rights are now readily recognized as property subject to distribution. To determine the amount distributable if the pension rights are non-vested, the court would calculate the "present value" of the future pension benefits.
Correct
Incorrect!
Question 6
Matt was an attorney before he married his wife Cathy. During the marriage he gave up his small law practice to become a senator. After two terms, Matt resigned and returned to private practice, accepting a lucrative partnership with the leading law firm in his home town. While they were married, Cathy was a housewife. During the property distribution stage of his divorce from Cathy, how would the court value his new position?
Correct
Incorrect!
Correct Professional goodwill-the enhanced earning capacity that comes from a professional reputation-is considered marital property that may be equitably distributed. Here, Matt's services as an attorney were highly coveted due to his former career as a senator. Since Matt acquired this enhanced professional reputation during the time he was married to Cathy, it should be considered marital property that may be equitably distributed.
Incorrect! Professional goodwill-the enhanced earning capacity that comes from a professional reputation-is considered marital property that may be equitably distributed. Here, Matt's services as an attorney were highly coveted due to his former career as a senator. Since Matt acquired this enhanced professional reputation during the time he was married to Cathy, it should be considered marital property that may be equitably distributed.