Question 1

Sophia and Edward are in the middle of a divorce. They want to make sure the divorce decree is the most favorable for both parties. Which payment type would be the most attractive for Sophia?

A distribution of the marital residence to Sophia.

An alimony award of $5,000 per month paid to Sophia.

A $100,000 equitable distribution award paid to Sophia.

Premiums on a $50,000 life insurance policy for Edward, naming Sophia as the beneficiary.

Question 2

Lynette and Jim are in the process of getting divorced. They are confused about the process. Specifically, Jim wants to know which item would be considered deductible.

Child support.

A $1,500 per month alimony payment.

A property settlement of the marital residence.

Lynette's free use of the vacation house in Maui.