Many people receiving Social Security Disability Insurance (SSDI) payments rely on it as their sole source of income. It’s understandable when they worry about how different things, such as a divorce settlement, can affect their SSDI payments.
But they don’t have anything to worry about. SSDI payments that are based on the individual’s own work record remain unaffected during a divorce. However, the payments may be garnished for alimony or child support.
Keep reading below as we describe in more detail the effects of divorce on SSDI.
SSDI Benefits and Divorce
When you retire or become disabled, you may be eligible for financial assistance from the government through the Social Security program. When a person reaches the age at which they are permitted to retire under federal law, they are eligible to begin receiving financial benefits that can either supplement or replace their previous source of income.
In addition, people who are deemed to have qualifying disabilities are eligible for social security payments, which are intended to compensate them for the diminished capacity to make a living that is a direct result of their disability.
The Social Security Administration (SSA) provides payments to a person’s spouse in addition to retirement and disability benefits for the individual. It is possible for a spouse to get up to half of the benefits that the person receives from Social Security. We call these payments “spousal benefits.”
The individual needs to be eligible for Social Security benefits for the applicant to obtain spousal benefits. In addition, even after a divorce, a person’s ex-spouse may be eligible for spousal benefits.
A person who has been divorced can file for Social Security benefits based on the employment history of a former spouse if the following conditions are met:
- The marriage between you and your ex lasted at least ten years
- You are unmarried
- You must be 62 years old or older
- Your ex-spouse can receive Social Security payments in their own right
- The amount of your Social Security payment that is determined by your own work history is going to be lower than the amount that is determined by the work history of your ex-spouse.
You may be eligible to get the higher benefit amount based on your ex-spouse’s record if all of the above apply to your situation. This won’t affect your ex-spouse’s Social Security benefits in any way. The Social Security Administration will not notify your ex-spouse that you have filed for benefits based on his or her earnings history.
Claiming Social Security benefits based on your ex-spouse’s employment history will not impact the benefits that your ex’s current spouse is eligible to receive.
You should also know that remarrying typically disqualifies you from receiving Social Security payments based on your ex-spouse’s record.
Present and past spouses are also eligible for benefits if the spouse dies. The term for these payments is “survivor’s benefits.” It is important to note that the survivor’s eligibility for benefits may be terminated if they remarry.
When you should file for Social Security retirement benefits and how to maximize the amount you can receive from the system depends on a number of different financial factors. If you need help deciding, consulting a professional financial advisor is a good idea.
Are SSDI Benefits Community Property?
In the event that a married couple decides to get divorced, the assets and property that they have accumulated during their marriage may be split between them. The courts will make a fair and equitable division of the shared assets held by the couple. The phrase “community property” refers to all of the assets that a married couple accumulates during the course of their marriage.
Real estate, personal property, earnings, and investments are only some of the many types of property that courts have considered to be “community property” and hence subject to equitable distribution in the event of a divorce.
The allocation of property in the event of a divorce is generally managed by state law, and the administration of Social Security benefits is handled by federal law.
Federal law specifically prohibits the division of Social Security benefits as community or marital property in the event of divorce. Social Security benefits are not like any other asset in that a person cannot simply “buy” them or obtain them via any other means.
As a matter of law, courts have determined that Social Security benefits are not subject to distribution during a divorce.
Do Divorce Settlements Affect SSDI Payments?
In order to qualify for Social Security Disability Insurance benefits, an individual must demonstrate that their mental or physical impairment prevents them from being able to maintain gainful employment. In most cases, SSDI benefits do not count as marital property and are not subject to division in the event of divorce.
If, on the other hand, these benefits were obtained throughout the course of the marriage and deposited into a joint bank account, then the assets included in that account are subject to division in the event of a divorce.
The process of splitting the property acquired during a marriage is handled differently in each state. Some states divide property on the basis of a fifty-fifty split. In contrast, others adhere to the rule of “equitable division,” according to which the court decides what constitutes a “fair” distribution of assets.
Although Social Security Disability Insurance may not be regarded as a marital asset, it is included as income when determining alimony and child support payments.
When one spouse has a disability and the other has been the primary provider of financial support throughout the marriage, the court may order the spouse who has been the primary provider to pay either rehabilitative or indefinite alimony to the disabled spouse in order to assist them in paying their bills.
However, the disabled spouse’s eligibility for government benefits is just one of many considerations that will determine the final alimony decision. If you are receiving Social Security Disability Insurance at the time that the divorce is finalized, the amount of alimony that you are eligible to receive will most likely be reduced as a result.
Divorce and Different Social Security Benefits
In this section, we discuss how divorce can affect different types of disability benefits.
SSDI (On One’s Work Record)
Although there won’t be any changes to the benefits, some portion of the benefits may be garnished if they are found liable for alimony or child support payments.
Some people are taken aback when they find out that they cannot qualify for Social Security Disability Insurance based on their own work records since the jobs they held in the past are not recent enough.
In addition to meeting the age-based minimum number of quarters worked requirement, disabled workers over the age of 30 must also have worked 20 quarters during the last decade.
SSDI (On a Late ex-Spouse’s Work Record)
A surviving ex-spouse who has a disability may be eligible for Social Security Disability Insurance benefits based on the deceased ex-spouse’s employment record if that record is greater than the record of the disabled surviving ex-spouse.
It is required that the surviving ex-spouse be at least 50 years old and have been married to the person who passed away for at least 10 years. There will be no change to an individual’s eligibility for this benefit as a result of remarriage beyond the age of 50 or the dissolution of a previous marriage.
Retirement Benefits
If a couple was married for a minimum of 10 years and the person is now at least 62 and unmarried, they will continue to be entitled to benefits based on the ex-spouse’s record unless the person becomes eligible for a bigger benefit based on his or her own Social Security record.
Even if one ex-spouse hasn’t applied for Social Security payments, the other person may be eligible based on the former spouse’s employment history if the couple has been divorced for at least two years and both are at least 62 years old.
Neither ex-spouse needs to agree to or be aware of the other getting benefits based on the former spouse’s job history. There is no reduction in the total amount of benefits that are due to the principal worker and any other dependents as a result of the divorced spouse being awarded benefits.
The surviving ex-spouse may be able to receive retirement benefits based on the deceased ex-spouse’s employment record if the deceased ex-spouse’s record is greater than the surviving ex-spouse’s record. This only applies if the deceased ex-spouse was fully insured before passing away.
The surviving ex-spouse needs to be at least 60 years old and must have been married to the deceased ex-spouse for at least ten years. Eligibility for this benefit is unaffected by a beneficiary’s subsequent marriage or divorce after age 60.
Medicare
People who receive Social Security Disability Insurance or who are at least 65 years old and receiving Social Security retirement income, including divorced couples, are eligible for Medicare, which is a major health insurance plan.
The majority of people will never pay Medicare Part A premiums because of their employment histories. Part A of Medicare covers medical expenses incurred in hospitals as well as certain skilled nursing home care.
The premium for Part B, which includes appointments with doctors and long-lasting medical equipment, is surprisingly low. Individuals who reach the age of 65 but are not qualified to receive a retirement income from Social Security may be able to obtain Medicare insurance. Additionally, there is a Medicaid program that can assist low-income individuals with the cost of premiums.
Is SSDI Included When Determining Alimony and Child Support?
Although a court cannot divide Social Security benefits equally as community property, it may take them into account when deciding issues like alimony and child support.
If a former spouse does not have the means to support their fair living expenses, the court may compel the person who was previously married to provide financial help to their ex-spouse from their future income. Courts consider each party’s income, expenses, and assets when deciding how much spousal support to award.
The other spouse’s Social Security benefits will be considered by the court as income when considering whether or not that spouse has sufficient assets to pay support.
Should I Request Alimony on SSDI?
Some people opt not to seek alimony out of worry that doing so may cause a reduction in the income that they are receiving from the government. This scenario doesn’t play out very often.
While it is true that you must disclose all sources of income, not all of these will have an impact on your alimony payments. A lawyer can help you understand the specifics of your situation.
On the other hand, one of the consequences of having a disability is that it can change the amount of alimony you are eligible to receive. During the divorce process, you must inform the court that you receive disability benefits. The judge will then be able to determine an appropriate alimony payment. The judge can also set a time limit on receiving alimony from your ex.
The amount of your Supplemental Security Income payments, on the other hand, will decrease if you start receiving alimony.
People qualify for Supplemental Security Income (SSI) when they have a short work history or when their Social Security Disability Insurance payout is minimal. When calculating your Social Security Disability Insurance benefits, you must include alimony payments because they are considered unearned income.
Conclusion
In conclusion, it is very unlikely that a divorce settlement will affect your SSDI payments. However, it is recommended that you consult the SSA’s office, an advocate, or a disability attorney so you can get a better answer based on the specifics of your case.
