CDS CDS Post-Divorce Planning & Support

Question 1

What is a Qualified Domestic Relations Order (QDRO) and why is it important post-divorce?

Accepted Answer

A legal order that divides retirement plan benefits between divorcing spouses without triggering early withdrawal penalties

Answer

A court order awarding the marital home to one spouse

Answer

A financial document authorizing alimony payments from a 401(k)

Answer

A tax filing requirement for divorced individuals

Question 2

After a divorce is finalized, which beneficiary designations should be reviewed and updated immediately?

Accepted Answer

Life insurance policies, retirement accounts, and any payable-on-death accounts

Answer

Only workplace retirement accounts

Answer

Bank savings accounts only

Answer

Beneficiary designations do not need updating after divorce

Question 3

What is the primary purpose of an alimony (spousal support) order post-divorce?

Accepted Answer

To help the lower-earning spouse maintain a reasonable standard of living and achieve financial independence

Answer

To penalize the higher-earning spouse for ending the marriage

Answer

To replace child support payments for adult children

Answer

To compensate the spouse who filed for divorce first

Question 4

Which type of alimony is typically awarded for a set period to allow the recipient to become financially self-sufficient?

Accepted Answer

Rehabilitative alimony

Answer

Permanent alimony

Answer

Reimbursement alimony

Answer

Lump-sum alimony

Question 5

Under the Tax Cuts and Jobs Act (TCJA) of 2017, how is alimony treated for tax purposes for divorces finalized after December 31, 2018?

Accepted Answer

Alimony is not deductible for the payer and not taxable income for the recipient

Answer

Alimony is deductible for the payer and taxable income for the recipient

Answer

Alimony is taxable for both parties

Answer

Alimony treatment is unchanged and remains fully deductible

Question 6

What does COBRA coverage allow a divorced spouse to do regarding health insurance?

Accepted Answer

Continue the former spouse's employer-sponsored group health insurance for up to 36 months at their own cost

Answer

Permanently remain on the former spouse's employer health plan

Answer

Transfer the employer plan to a new individual policy at no charge

Answer

Obtain Medicare coverage immediately after divorce regardless of age