What happens when a married couple in Minnesota files for divorce, and one of them receives disability benefits? How will spousal maintenance, child support and the disability benefits themselves be affected? The outcome depends on the definition of marital property, how that marital property will be divided and the nature of the benefits.
Social Security Disability Insurance (SSDI) is considered household income under Minnesota law, while Supplemental Security Income (SSI) is not. This distinction comes into play in certain circumstances regarding spousal maintenance and child support.
SSDI, SSI and Marital Property in Minnesota
Since Minnesota is not a community property state, how disability benefits are split when a marriage dissolves depends on a number of factors. These include:
• Both spouse’s financial standing;
• Each spouse’s sources of income;
• How long the couple was married; and
• Who ends up with custody of the children
Other factors may also come into play – for instance, if these are any special needs children in the family who also receive benefits.
Disability Benefits and Spousal Maintenance
A spouse receiving SSI benefits may see a reduction in benefits if they receive spousal maintenance. SSDI is generally not affected by alimony. For that reason, you might consider other equitable distribution options, such as adjustments to other property awards.
On August 1, 2016, a Minnesota law went into effect that reduces or terminates spousal maintenance if the receiving spouse cohabitates with another partner after the divorce.
SSI, SSDI and Child Support
Child support offers its own challenges. For instance, let’s say a child receives SSI, and the spouse with custody is awarded child support. That arrangement will affect the child’s SSI benefits. As an alternative, you could ask that child support be placed in a special needs trust (SNT). If a child receives SSDI based on a parent’s disability, the court will likely take that factor into account when establishing child support.