When a couple goes through a divorce, their finances can become complicated, especially when one spouse receives Social Security Disability (SSD) benefits. Understanding how disability benefits are treated in a divorce is essential for both parties. If you are facing a separation and are concerned how your benefits could influence your divorce settlement, it is imperative you consult an attorney to help protect your rights and financial future.
How Social Security Disability Benefits Are Treated In Divorce
Social Security Disability benefits are often considered a form of income, but they are not treated the same way as typical wages. While SSD benefits are generally protected from division in a divorce, they can still have an impact on other aspects of the divorce settlement. Specifically, they may be taken into account when calculating spousal support (alimony) and child support obligations.
In some cases, if the spouse receiving SSD benefits has dependents, those dependents may be entitled to a portion of the disability benefits. This means that while the SSD benefits themselves may not be divided between spouses, the financial need of the children or dependent spouse could be considered when determining the division of assets and liabilities.
Dividing Assets And Social Security Disability Benefits
The overall financial situation of the couple will likely be reviewed in the division of marital assets. This means that the non-disabled spouse may be entitled to a larger share of other assets, like retirement accounts, savings, or real property, in exchange for the SSD benefits being solely in the disabled spouse’s name.
However, there are factors that should be considered. If the disabled spouse was married for at least 10 years to their ex-spouse, the non-disabled spouse may be entitled to benefits based on the disabled spouse’s work record. This type of benefit is called a “divorced spouse’s benefit,” and a Social Security disability lawyer can help determine whether this applies in a specific case.
Social Security Disability Benefits And Spousal Support
Spousal support, or alimony, is a common issue in divorce cases involving one spouse receiving SSD benefits. Since SSD benefits are not considered income in the traditional sense, the court may adjust alimony calculations to account for the limited financial resources of the disabled spouse. The disabled spouse may argue that they cannot afford to pay a significant amount of alimony due to their disability.
On the other hand, the non-disabled spouse may argue that the SSD benefits should factor into the support calculations. In some cases, the court may decide that alimony is necessary, but it could be adjusted to account for the disabled spouse’s limited earning capacity. A divorce lawyer can help you overcome these challenges and make sure that your financial needs are met while adhering to the law.
Child Support And Disability Benefits
In cases where the couple has children, child support is another important factor. If the disabled spouse is responsible for child support, their SSD benefits can play a role in determining the amount owed. Typically, child support is based on the income of both parents, and SSD benefits are considered income when calculating support payments.
If the disabled parent is unable to meet the child support requirements based on their limited SSD income, they may request a modification of the support order. The court will assess the circumstances of the case, taking into account the child’s needs and the financial resources of both parents. If the non-disabled spouse is receiving benefits as a result of the disabled spouse’s work record, that too may impact the child support calculation.
Modifying Disability Benefit Agreements After Divorce
Our friends at Hickey & Turim, S.D. emphasize the importance of remembering that any agreement involving Social Security Disability benefits, such as spousal support or child support, can be modified if circumstances change. For example, if the disabled spouse’s condition improves or worsens, this could impact their ability to pay support. Similarly, if a child’s needs change or if either spouse experiences a significant financial change, support arrangements may be adjusted.
Social Security Disability benefits are not static, so if they change due to an increase or decrease in the recipient’s disability rating, a modification of the divorce settlement might be necessary. Both parties should work with a family lawyer to make sure that any modifications are legally valid and in line with current financial realities.
Protecting Your Rights In Divorce With Disability Benefits
Dividing assets and determining support in divorce cases involving Social Security Disability benefits requires careful consideration of both financial and legal factors. Whether you’re the recipient of disability benefits or the non-disabled spouse, understanding how these benefits interact with your divorce agreement is essential for protecting your financial future. Consulting with both a disability lawyer and a divorce attorney can help safeguard your rights and make sure your needs are met throughout the divorce process.