Supposedly, but in come cases Word can still get confused, as I can attest.
I've been working with a 600+ document with >500 footnotes, some of them
quite long, and I did have to tweak some of the page breaks to make things
come out right. Not having started out with Exact line spacing (the document
evolved into something a lot more elaborate than I'd originally planned), I
found it too daunting to go back and change all my styles, so I didn't try
that fix, and I found that the Compatibility Option had no effect at all
(for what I'm talking about, see
http://word.mvps.org/FAQs/Formatting/FootnoteOnDiffPage.htm