CDFA Exam UPDATED ACTUAL Questions and CORRECT Answers
In a divorce settlement, what mistake is commonly made
by financial
professionals without proper training?
Considering only an equal division of property
Considering the tax consequences of the sale of property
Considering investment returns
Considering inflation
Considering only an equal division of property
Which of the following is a common mistake that divorcing
couples make?
Failing to consider the tax consequences of an early with-
drawal
from a retirement account Failing to consider the tax consequences of an early with-
Dividing a joint checking account to obtain an equitable drawal from a retirement account
distribution of assets
Using the cost basis to determine taxes on the sale of
property
Failing to consider the taxes due on child support pay-
ments
From a client's perspective and without regard to the cost,
at which of the
following times should an individual hire a CDFA profes-
sional?
When considering getting a divorce
When considering getting a divorce
After meeting with an attorney
After filing a petition for divorce
Prior to a final judgment for divorce
Which of the following is NOT an appropriate service that
CDFA professionals can provide?
, Determine the financial impact of the proposed settle-
ment.
Provide litigation support relating to financial issues.
Prepare business valuations and analysis.
Prepare a report showing the financial impact of one
spouse
keeping the family home.
Prepare business valuations and analysis.
Which of the following is NOT a reason for a CDFA profes-
sional to interview
clients?
To help them identify their financial goals, including re-
To collect financial data
tirement
To develop a budget
objectives
To complete answers to interrogatories
To help them identify their financial goals, including re-
tirement
objectives
Jacob is divorcing his wife, Andrea. Jacob has hired
Michelle, a CDFA
professional, to work on his divorce case. Which of the
following actions are
appropriate for Michelle?
Michelle will need to analyze the financial information for
Michelle will only need to analyze Jacob's financial infor-
both
mation.
Jacob and Andrea.
Michelle will only need to analyze Andrea's financial infor-
mation.
Michelle will need to analyze Jacob's financial information
and
audit Andrea's financial information.
Michelle will need to analyze the financial information for
, both
Jacob and Andrea.
An individual who is trained to calculate statistically risks,
premiums, and life
expectancies for insurance and pension plans is referred
to as a/an
.
A is an individual who has been
trained to assist
people in coming to an agreement.
A CDFA professional is able to give legal advice under
which of the following
conditions?
The advice must be limited to the division of marital assets
and
debts.
A CDFA professional is not able to give legal advice under
A CDFA professional is not able to give legal advice under
any
any
conditions.
conditions.
The CDFA professional must seek and obtain permission
from the
client's lawyer before giving legal advice.
The advice must be limited to recommending levels of
spousal
support.
What impact have the "no-fault" divorce laws had on di-
vorces in the United
States? An increase in the number of divorces
An increase in the number of divorces
, A decrease in the number of divorces
An increase in the amount of spousal support that is paid
An increase in the amount of child support that is paid
Which of the following individuals is most likely to seek the
services of a CDFA® professional?
a) John, age 45, earns $40,000 per year and lives in an
apartment with his wife who earns
$25,000. Their only assets are checking and savings ac- b) Mary, age 40, is a stay-at-home wife and her husband
counts totaling $5,000. earns $150,000. They have assets valued at $250,000.
b) Mary, age 40, is a stay-at-home wife and her husband They have a mortgage of $80,000.
earns $150,000. They have assets valued at $250,000.
They have a mortgage of $80,000. joint income of $100,000 or greater and joint assets that
c) Henry, age 35, earns $40,000 and owns an IRA valued exceed $100,000
at $35,000. His wife earns
$45,000 and she has a 401(k) valued at $36,000.
d) Helen, age 30, is pregnant. Helen and her husband
each earn $36,000. They have assets
with a value of $80,000.
Jane, a clinical social worker, has also been trained as a
mediator. Which of the following is an appropriate way to
use her mediation training?
c) Jane is mediating a divorce case referred to her by a
a) Jane is preparing court documents for clients.
friend.
b) Jane is working as an arbitrator.
c) Jane is mediating a divorce case referred to her by a
friend.
d) Jane is mediating a divorce case for a friend.
Which of the following activities are appropriate for a
mediator to do?
In a divorce settlement, what mistake is commonly made
by financial
professionals without proper training?
Considering only an equal division of property
Considering the tax consequences of the sale of property
Considering investment returns
Considering inflation
Considering only an equal division of property
Which of the following is a common mistake that divorcing
couples make?
Failing to consider the tax consequences of an early with-
drawal
from a retirement account Failing to consider the tax consequences of an early with-
Dividing a joint checking account to obtain an equitable drawal from a retirement account
distribution of assets
Using the cost basis to determine taxes on the sale of
property
Failing to consider the taxes due on child support pay-
ments
From a client's perspective and without regard to the cost,
at which of the
following times should an individual hire a CDFA profes-
sional?
When considering getting a divorce
When considering getting a divorce
After meeting with an attorney
After filing a petition for divorce
Prior to a final judgment for divorce
Which of the following is NOT an appropriate service that
CDFA professionals can provide?
, Determine the financial impact of the proposed settle-
ment.
Provide litigation support relating to financial issues.
Prepare business valuations and analysis.
Prepare a report showing the financial impact of one
spouse
keeping the family home.
Prepare business valuations and analysis.
Which of the following is NOT a reason for a CDFA profes-
sional to interview
clients?
To help them identify their financial goals, including re-
To collect financial data
tirement
To develop a budget
objectives
To complete answers to interrogatories
To help them identify their financial goals, including re-
tirement
objectives
Jacob is divorcing his wife, Andrea. Jacob has hired
Michelle, a CDFA
professional, to work on his divorce case. Which of the
following actions are
appropriate for Michelle?
Michelle will need to analyze the financial information for
Michelle will only need to analyze Jacob's financial infor-
both
mation.
Jacob and Andrea.
Michelle will only need to analyze Andrea's financial infor-
mation.
Michelle will need to analyze Jacob's financial information
and
audit Andrea's financial information.
Michelle will need to analyze the financial information for
, both
Jacob and Andrea.
An individual who is trained to calculate statistically risks,
premiums, and life
expectancies for insurance and pension plans is referred
to as a/an
.
A is an individual who has been
trained to assist
people in coming to an agreement.
A CDFA professional is able to give legal advice under
which of the following
conditions?
The advice must be limited to the division of marital assets
and
debts.
A CDFA professional is not able to give legal advice under
A CDFA professional is not able to give legal advice under
any
any
conditions.
conditions.
The CDFA professional must seek and obtain permission
from the
client's lawyer before giving legal advice.
The advice must be limited to recommending levels of
spousal
support.
What impact have the "no-fault" divorce laws had on di-
vorces in the United
States? An increase in the number of divorces
An increase in the number of divorces
, A decrease in the number of divorces
An increase in the amount of spousal support that is paid
An increase in the amount of child support that is paid
Which of the following individuals is most likely to seek the
services of a CDFA® professional?
a) John, age 45, earns $40,000 per year and lives in an
apartment with his wife who earns
$25,000. Their only assets are checking and savings ac- b) Mary, age 40, is a stay-at-home wife and her husband
counts totaling $5,000. earns $150,000. They have assets valued at $250,000.
b) Mary, age 40, is a stay-at-home wife and her husband They have a mortgage of $80,000.
earns $150,000. They have assets valued at $250,000.
They have a mortgage of $80,000. joint income of $100,000 or greater and joint assets that
c) Henry, age 35, earns $40,000 and owns an IRA valued exceed $100,000
at $35,000. His wife earns
$45,000 and she has a 401(k) valued at $36,000.
d) Helen, age 30, is pregnant. Helen and her husband
each earn $36,000. They have assets
with a value of $80,000.
Jane, a clinical social worker, has also been trained as a
mediator. Which of the following is an appropriate way to
use her mediation training?
c) Jane is mediating a divorce case referred to her by a
a) Jane is preparing court documents for clients.
friend.
b) Jane is working as an arbitrator.
c) Jane is mediating a divorce case referred to her by a
friend.
d) Jane is mediating a divorce case for a friend.
Which of the following activities are appropriate for a
mediator to do?
