CDA Spousal Support & Alimony Calculations 2 — Questions and Answers
Question 1: Which type of alimony is specifically designed to give a lower-earning spouse time to become self-supporting through education or job training?
- Permanent alimony
- Rehabilitative alimony (Correct answer)
- Reimbursement alimony
- Lump-sum alimony
Correct answer: Rehabilitative alimony
Rehabilitative alimony is awarded for a set period to allow the recipient to gain skills or education needed for self-sufficiency.
Question 2: A spouse who supported the other through medical school seeks compensation for those sacrifices after a short marriage ends. Which alimony type best fits?
- Permanent alimony
- Rehabilitative alimony
- Reimbursement alimony (Correct answer)
- Bridge-the-gap alimony
Correct answer: Reimbursement alimony
Reimbursement alimony compensates a spouse for financial sacrifices made during the marriage, such as funding the other's education.
Question 3: In most U.S. states, how does cohabitation of the alimony recipient with a new partner typically affect alimony payments?
- No effect unless the recipient remarries
- Can trigger modification or termination of alimony (Correct answer)
- Automatically doubles the payment amount
- Requires court approval before any change
Correct answer: Can trigger modification or termination of alimony
Cohabitation often allows the paying spouse to seek modification or termination of alimony, as the recipient's financial needs may have changed.
Question 4: Which financial factor is generally NOT considered when calculating the amount of alimony?
- Length of the marriage
- Each spouse's earning capacity
- The recipient's credit score (Correct answer)
- Standard of living during marriage
Correct answer: The recipient's credit score
Credit scores are not a standard factor in alimony calculations; courts focus on income, need, earning capacity, and marital standard of living.
Question 5: A court awards alimony of $2,000/month for exactly 36 months with no possibility of extension. This is best classified as:
- Permanent alimony
- Rehabilitative alimony
- Durational alimony (Correct answer)
- Reimbursement alimony
Correct answer: Durational alimony
Durational alimony provides support for a fixed period and is often used after marriages of moderate length where permanent support isn't warranted.
Question 6: Under the post-2018 federal tax law (TCJA), who bears the income tax burden on alimony payments for divorces finalized after December 31, 2018?
- The paying spouse deducts and recipient reports income
- The recipient pays no tax; payer gets no deduction (Correct answer)
- Both spouses split the tax liability equally
- The IRS taxes the higher-earning spouse regardless
Correct answer: The recipient pays no tax; payer gets no deduction
Under TCJA, for divorces finalized after 12/31/2018, alimony is neither deductible by the payer nor taxable income to the recipient.
Question 7: Which of the following events will most commonly terminate a permanent alimony obligation by operation of law?
- Recipient loses their job
- Paying spouse retires
- Recipient remarries (Correct answer)
- Paying spouse relocates out of state
Correct answer: Recipient remarries
Remarriage of the recipient spouse automatically terminates permanent alimony in most U.S. states.
CDA Spousal Support & Alimony Calculations 2
Which type of alimony is specifically designed to give a lower-earning spouse time to become self-supporting through education or job training?