NACVA Exam CVA Topic 3 Question 58 Discussion

Actual exam question for NACVA's CVA exam

Question #: 58
Topic #: 3

[All CVA Questions]

Bishop and Schroeder make the point that lack of marketability discounts should be recognized, just as they are in Tax Court, because one spouse usually gets liquid assets while the other spouse lacks:

Athe mode of payment as it is the exchange of interests in the marital assets

BUnderlying principles that are much more consistent and broadly accepted

CSuch flexibility

DThe flexibility and safety of being able to ''cash out'' readily at the owner's option

Show Suggested Answer

Suggested Answer: D

by Samira at Oct 11, 2022, 05:28 AM

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Louann

1 months ago

Marketability discounts? More like 'how to make the most out of a bad situation' discounts. But yeah, D is the way to go.

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Henriette

1 months ago

Ha! Looks like someone's trying to trick us with those options. D is the only one that really makes sense in the context of the question.

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Maile

1 months ago

I was torn between B and D, but I think D captures the essence of the issue more accurately. The flexibility and safety of being able to cash out is a crucial factor.

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Alton

7 days ago

I think B is also important because it talks about the underlying principles that are broadly accepted.

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Fabiola

12 days ago

I agree, D really highlights the importance of being able to cash out easily.

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2 months ago

I think lack of marketability discounts should be recognized in divorce cases.

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