In the past few days, the government Social Security Benefits This has drawn attention from recipients because it changes how benefits are paid. It is the first time a judge has ruled that Social Security funds can be used to pay alimony between divorcees. This month, the Colorado Court of Appeals ruled that under federal law, payments between former spouses can be made with Social Security funds. After a divorce, alimony is often paid to an ex-spouse when one spouse earns much less than the other.
Generally speaking, Social Security benefits cannot be assigned or transferred under one of the federal laws at issue in the case. But another law says the monthly benefits must be counted as income when determining alimony. Judge David H. Yun said judges can take Social Security pensions and other income into account when determining alimony and child support. Non-transferable Federal BenefitsThe same applies even if the decision effectively results in an indirect transfer of the interest.
Social Security payments will now be available to help pay alimony between divorcing partners
In the past, alimony was provided when there was a large disparity in income between divorcing couples, allowing the higher-income spouse to continue supporting the lower-income spouse after the divorce. Unfortunately, this system has been discontinued. Low income Many left their jobs to provide for their families and had enough money to cover living expenses. For example, in a Colorado case, Riley McClure was paying $2,500 a month in alimony to her ex-spouse. After McClure was forced to use Social Security to pay spousal support after she left the company, she began receiving Social Security to reduce her alimony obligation.
McClure argued that this violated federal law, but an appeals court ruled that it was permissible. Social Security Income The idea of using Social Security as a vehicle for child support payments could be factored into the calculation of a divorced spouse’s debts when calculating what debts the other spouse owes. Alex Bean, a financial education lecturer at the University of Tennessee at Martin, said in a statement to Newsweek, “Past court decisions have, at least in part, supported the idea of using Social Security as a vehicle for child support payments, which may come as a surprise to some. He stressed that this is especially true in cases where a judge has determined that even if a former spouse is entitled to Social Security, they should still make payments but at a reduced amount.”
New alimony calculations affect Social Security benefits for eligible recipients
According to Kevin Thompson, financial expert and founder of 9i Capital Group, the majority of seniors aren’t worried about alimony. According to the Social Security Administration, if you were married for at least 10 years before your divorce, your ex-spouse is eligible for benefits based on your record. Additionally, Thompson said, because the majority of seniors have been married for more than 10 years, claims against their spouses are likely to be delayed. Retirement benefits This amount may be reduced by your spouse’s Social Security benefits.
Additionally, older adults may be affected because they may choose to separate rather than divorce in order to accumulate the years needed to maintain their Social Security benefits. Furthermore, as Alex Bean has revealed, even if there is a divorce, the amount of alimony available may be reduced. The big gap An increase in your ex-spouse’s salary and a significant change in your monthly income (including Social Security benefits).
The couple carefully analyzed their options. Calculating child support This new law will undoubtedly have a major impact on divorce settlements across the country, and it could also impact Social Security benefits for seniors. Financial experts are divided on the potential damage to seniors, even though the rule allows them to use Social Security to pay alimony.
