Division of Property upon Relationship Breakdown
KNOWLEDGE EXPECTED OF: CFP® Professionals
Highest Knowledge Level: Understanding
Knowledge Levels and Associated Verbs
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Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
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Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
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Application
Ability to put information to use / to use knowledge for relevant, practical purposes
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Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
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Define
To state exactly the meaning of
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Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
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Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
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Determine
To ascertain / to come to a decision, such as by investigation or reasoning
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Compare
To note the similarities and differences between two or more things
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Estimate
To determine an approximate value for
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Calculate
To find the value using mathematics
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Convert
To change from one form or purpose to another
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Evaluate
To reach a conclusion or make a through careful study
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Interpret
To give the meaning of / to construe or understand / to translate orally
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Hold cursor over or click on each term to read its definition.
Additional Knowledge Expected of CFP Professionals
- Identify that division of property falls under provincial/territorial legislation.
- Identify circumstances in which a division of property may occur, such as:
- Separation
- Divorce
- Under the terms of a domestic contract
- Define net family property.1
- Identify that in some jurisdictions, a net family property calculation is made to determine the division of property among spouses.
- Identify assets and liabilities that may be included in the calculation of net family property.
- Identify assets that may be excluded from the calculation of net family property.
- Identify that in multiple jurisdictions, legislation protects the matrimonial home to ensure that it may not be disposed of unless both spouses agree in writing.
- Define equalization payment.
- Identify that in multiple jurisdictions, a spouse may receive an equalization payment as part of a division of assets.
- Identify methods for dividing pension assets.
- Define unjust enrichment.
- Define a constructive trust.
- Identify that while in some jurisdictions common-law partners may not have property rights under family law, they may have a property rights pursuant to a claim of unjust enrichment.
- Explain the requirements to prove unjust enrichment.
REFERENCES
1 Net family property refers to the property that was acquired by a spouse during a marriage and is subject to division between the spouses upon the breakdown of the relationship. It may possess different names, based on jurisdiction, such as matrimonial property.
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