What Are Direct Costs of Financial Distress

question 55

Essay

What are direct costs of financial distress?

Understand the changes in couple dynamics after children have grown, including the impact on relationship time and quality.

Identify social structures such as social convoys and support networks that influence adult life.

Grasp the effects of remarriage on individuals' lives, including intimacy, health, friendships, and financial security.

Acknowledge the role of commitment, health, and happiness in long-term partnerships.

---

Definitions:

IRC Section 121

A provision in the Internal Revenue Code that allows homeowners to exclude up to $250,000 ($500,000 if married filing jointly) of capital gains on the sale of their primary residence, subject to certain conditions.

Receipt of Boot

Tax term referring to non-like-kind property or cash received in an exchange, which may trigger taxable gain.

Like-kind Exchange

A tax-deferred exchange of similar properties under section 1031 of the U.S. Tax Code.

Installment Method

A tax method allowing income recognition from sales or transfers of property over time as the seller receives payments.