Legal Question in Social Security Law in Pennsylvania

divorce

My sister who is on social security and disability is getting a divorce. My question is when she gets a settlement, how can she prevent it from being considered income? Social security only allows you to have so much money.Is there a way she can put it somewhere where theres not going to be a problem?


Asked on 1/08/07, 7:45 pm

1 Answer from Attorneys

Randall Selagy F. Randall Selagy, P.C.

Re: divorce

First, I am not sure what you mean by �she is on social security AND disability.�

You state: �How can she prevent it from being considered income? By �it� do you mean the SS benefit?

With respect to SS benefits being considered �income� for the divorce settlement, that is really an alimony- spousal support question and is best answered by an experienced Family Law attorney in the county where the divorce is filed.

If �it� refers to the divorce settlement being considered �income� by the SSA, then it depends on which program.

Social Security has several programs, one of which is Disability. The disability program is for people who worked and paid FICA or Social Security tax. A disability benefit is based on what she has paid into the SS system. There is no limit to how much money SSD allows her to have either as monthly alimony or lump sum assets. However, if she is receiving SSI because of her disability, SSI is a needs-based program and there are asset and income restrictions.

If she is receiving SSI, the only way to avoid other assets from being considered a resource - thus lowering the monthly SSI benefit - is to place those funds in a Special Needs Trust. This trust is restrictive and must be approved by PA and the SSA. An attorney experienced in this area will know how to do this.

It seems to me these are questions your sister should be asking. If her disability prevents her from understanding these issues, you should consider having a guardian, surrogate or advocate appointed for her.

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Answered on 1/09/07, 9:48 am


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