Domestic Contracts

KNOWLEDGE EXPECTED OF: CFP® Professionals

Highest Knowledge Level: Understanding

Knowledge Levels and Associated Verbs


Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
Application
Ability to put information to use / to use knowledge for relevant, practical purposes
Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
Define
To state exactly the meaning of
Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
Compare
To note the similarities and differences between two or more things
Estimate
To determine an approximate value for
Calculate
To find the value using mathematics
Convert
To change from one form or purpose to another
Evaluate
To reach a conclusion or make a through careful study
Interpret
To give the meaning of / to construe or understand / to translate orally

Hold cursor over or click on each term to read its definition.


Additional Knowledge Expected of CFP Professionals
  • Define a domestic contract. 
  • Define independent legal advice.  
  • Explain the importance of each spouse having independent legal advice regarding a domestic contract. 
  • Explain how a domestic contract may be agreed upon. 
  • Identify that the format of an enforceable domestic contract varies across jurisdictions. 
  • Identify types of domestic contracts, such as:
    • Cohabitation agreements
    • Marriage contracts
    • Separation/divorce agreements 
  • Explain the purpose of each type of domestic contract.  
  • Explain that cohabitation and marriage contracts may contain covenants related to any part of the relationship. 
  • Identify covenants contained within a separation agreement, such as:
    • Promise to live separate and apart
    • Promise not to interfere in the life of the other party
    • Spousal support 
    • Child support
    • Custody and access to children
    • Division of property
    • Duration of agreement
    • Terms for termination of agreement
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