Will Property Division in a Divorce Affect SSI or SSDI Benefits?
When a couple gets divorced, they often divide their property and assets. This can include things like money in bank accounts, retirement funds, real estate, or other valuable property. If you receive disability benefits, you may wonder whether getting property in a divorce could affect those benefits.
The answer depends on which disability program you receive.
Supplemental Security Income (SSI)
SSI is a needs-based program for people who have limited income and resources. Because SSI looks at your financial situation, receiving money or property through a divorce can affect your eligibility.
For example, if you receive cash, savings, investments, or other assets that push your resources above SSI limits, your benefits could be reduced or even stopped. Some assets, such as the home you live in, may not count toward the resource limit.
If you receive SSI and are going through a divorce, it is important to report any property or money you receive to the Social Security Administration.
Social Security Disability Insurance (SSDI)
SSDI works differently. SSDI benefits are based on your work history and the Social Security taxes you paid while working. Unlike SSI, SSDI does not have resource or asset limits.
This means that receiving property, money, or other assets as part of a divorce settlement generally will not affect your SSDI benefits. In most cases, you can receive an inheritance, cash settlement, or property division award without losing SSDI eligibility.
The Bottom Line
Property division in a divorce may affect SSI because SSI has strict income and resource limits. However, property division usually does not affect SSDI because SSDI is based on your work record rather than your financial resources.
Because every situation is different, anyone receiving SSI or SSDI should consider speaking with an attorney or benefits specialist to understand how a divorce settlement may affect their specific benefits. Please reach out to the experienced and compassionate attorneys at Maven Law today to schedule a consultation to discuss the specifics of your case.
