Tim and Janet Were Divorced

question 67

Multiple Choice

Tim and Janet were divorced.Their only marital property was a personal residence with a value of $120,000 and cost of $50,000.Under the terms of the divorce agreement, Janet would receive the house and Janet would pay Tim $15,000 each year for 5 years, or until Tim's death, whichever should occur first.Tim and Janet lived apart when the payments were made to Tim.The divorce agreement did not contain the word "alimony."

• A)Tim must recognize a $35,000 [$60,000 - 1/2($50,000)] gain on the sale of his interest in the house.
• B)Tim does not recognize any income from the above transactions.
• C)Janet is not allowed any alimony deductions.
• D)Janet is allowed to deduct $15,000 each year for alimony paid.
• E)None of the above.

---

Definitions:

Participatory Support

Assistance or backing that involves active involvement and contribution from all members of a group or community.

Working-family Schedules

The arrangement and allocation of work hours and commitments tailored to accommodate the needs and responsibilities of family life.

Asset-based

An approach that focuses on the strengths and potentials of individuals or communities, rather than their deficits.

Family-centered

An approach or practice that places the family at the center of decisions and planning, emphasizing the importance of family in an individual's life.