CDA Insurance & Benefits in Divorce 3 — Questions and Answers
Question 1: What is the minimum marriage duration required to claim Social Security spousal benefits based on an ex-spouse's record?
- 5 years
- 7 years
- 10 years (Correct answer)
- 20 years
Correct answer: 10 years
A divorced spouse must have been married for at least 10 years to be eligible for Social Security benefits based on the ex-spouse's earnings record.
Question 2: When a divorce settlement assigns a pension's survivor benefit option to the non-employee spouse, which document legally effectuates this with a defined benefit plan?
- QDRO (Correct answer)
- COBRA election form
- Beneficiary change form
- IRC Section 1041 transfer form
Correct answer: QDRO
A QDRO (Qualified Domestic Relations Order) is required to assign survivor annuity rights and other pension interests from a defined benefit plan to an alternate payee.
Question 3: A spouse who remarries before age 60 and later divorces again — how does this affect Social Security divorced-spouse benefits from the first marriage?
- Benefits from the first marriage are permanently forfeited
- Remarriage has no effect on divorced-spouse benefits
- Benefits are suspended but restored upon second divorce (Correct answer)
- The spouse must reapply from scratch regardless
Correct answer: Benefits are suspended but restored upon second divorce
Remarriage before age 60 disqualifies a divorced spouse from benefits on the first ex-spouse's record, but those benefits are reinstated if the subsequent marriage ends.
Question 4: Under ERISA, a QDRO must specifically identify which of the following?
- The plan's investment menu
- The amount or percentage to be paid to the alternate payee (Correct answer)
- The employee's current salary
- The employer's FEIN
Correct answer: The amount or percentage to be paid to the alternate payee
A QDRO must clearly specify the amount or percentage (or the manner of determining it) to be paid to the alternate payee to be considered qualified.
Question 5: A divorced spouse covered under a military member's Tricare health plan — under what condition may they retain Tricare coverage after divorce?
- Never; Tricare terminates immediately at divorce
- Only if the service member agrees in writing
- Under the 20/20/20 rule: 20 years of service, 20-year marriage, 20-year overlap (Correct answer)
- After 36 months of COBRA-equivalent continuation
Correct answer: Under the 20/20/20 rule: 20 years of service, 20-year marriage, 20-year overlap
The 20/20/20 rule allows a former military spouse to retain full Tricare benefits when the service member served at least 20 years, the marriage lasted at least 20 years, and there is a 20-year overlap.
Question 6: Which of the following best describes a 'pre-retirement survivor annuity' in the context of a pension and divorce?
- A lump-sum payment made at retirement
- A benefit paid to the alternate payee if the employee dies before retiring (Correct answer)
- Monthly payments made directly to the plan administrator
- An annuity available only after age 70½
Correct answer: A benefit paid to the alternate payee if the employee dies before retiring
A pre-retirement survivor annuity (QPSA) pays the alternate payee if the plan participant dies before reaching retirement age, and a QDRO can protect this benefit.
Question 7: A Health Savings Account (HSA) accumulated during marriage is typically treated as which type of asset in divorce?
- Exempt separate property in all states
- Non-divisible federal benefit
- Marital property subject to equitable distribution (Correct answer)
- A tax-free gift to the account holder's spouse
Correct answer: Marital property subject to equitable distribution
HSA balances accumulated during the marriage are generally considered marital property and may be divided between spouses in divorce proceedings.
CDA Insurance & Benefits in Divorce 3
What is the minimum marriage duration required to claim Social Security spousal benefits based on an ex-spouse's record?