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required and follow existing procedures for obtaining documentation. 2640.10.16 TRANSFERS OF PERSONAL EFFECTS AND HOUSEHOLD GOODS The following items can be transferred without receipt of adequate consideration and without imposition of a transfer penalty: • Household goods and personal effects88 • One wedding ring of the applicant/recipient and spouse • One engagement ring of the applicant/recipient and spouse • Medical equipment required due to the applicant’s/recipient/s physical condition, and which is not used extensively or primarily by others. Wedding rings and engagement rings are those purchased by one spouse for the other spouse (or intended spouse in the case of engagement ring). If a ring is purchased by someone after marriage and labeled an engagement or wedding ring upon giving it away, a violative transfer has occurred. 2640.10.20 DETERMINING ADEQUACY OF CONSIDERATION If a transfer cannot be determined automatically non-violative in accordance with the preceding sections, the DFR must proceed to determine whether or not adequate consideration was received. Consideration is whatever compensation the individual received in return for the transferred property. In order to determine a transfer as non-violative, the individual must have received adequate consideration. Consideration is adequate when the fair market value minus loans, mortgages, or other encumbrances, of the transferred property is equal to the consideration received. Fair market value is the current market value of the property at the time of the transfer. The applicant/recipient is required to supply any necessary records, documentation and information which verify the fair market value and consideration received. The value of the consideration received is based on the agreement and expectation of the parties at the time of the transfer. The value of consideration is the gross amount paid by the purchaser, and it may be paid in one or more forms such as those discussed in the following sections. (Other forms of consideration may also be possible.) The compensation received for an asset must be in a tangible form with intrinsic value. For example, love and affection does not constitute adequate consideration because there is no dollar value attributable to love and affection. 2640.10.20.05 COMPENSATION IN CASH Compensation in the form of cash is the total amount of cash paid or agreed to be paid in exchange for the property.89