Divorce affects various aspects of life, including financial stability. Therefore, if you receive Social Security Disability benefits, knowing if your divorce will affect your eligibility is essential. This way, you can plan your strategy accordingly.
Still, you must understand the types of benefits available. SSDI is a program for individuals who have contributed to Social Security through work. Income or assets do not affect it, meaning divorce does not alter eligibility for SSDI. Conversely, SSI is a need-based program. This makes it sensitive to changes in financial circumstances, such as divorce.
Divorce and SSDI
For those receiving SSDI, divorce does not directly impact benefits. SSDI is based on your work history and contributions to Social Security. This means that marital status changes do not affect eligibility.
Still, divorce could influence your financial plans, as you could lose your spouse’s financial support. You may need additional financial planning to maintain economic stability in such cases. Fortunately, an attorney can help you evaluate your options and create a strategy to defend your interests.
Divorce and SSI
SSI recipients face a different scenario. Since SSI is need-based, it considers both income and assets. During marriage, the SSA might treat some of your spouse’s income and assets as yours for SSI purposes. This could disqualify you from benefits.
However, divorce stops the deeming process, allowing the SSA to focus solely on your income and assets. This change can enable some divorced individuals to qualify for SSI or boost their benefits. Therefore, it is crucial to assess your case individually.
Spousal support and SSI
Spousal support or alimony can complicate SSI eligibility. The SSA treats spousal support as unearned income, which can reduce SSI benefits dollar for dollar after the first $20. Without careful planning, sizeable spousal support payments could eliminate SSI eligibility. To prevent this, spousal support might be directed to a first-party special needs trust. This can sometimes help preserve SSI eligibility while providing financial support.
Facing divorce is already challenging, and it can get more complex when dealing with Social Security Disability benefits. Therefore, it is best to seek legal counseling to understand your situation. This way, you can work with a professional who helps you create a plan to maintain financial stability after the divorce.
