There may soon be a change in maintenance payments for recipients of social benefitsthanks to a recent state court ruling that these benefits can be taken into account when calculating income for spousal support.
Earlier this month, the Colorado Court of Appeals made a landmark decision. The court ruled that under federal law Social security benefits can actually be taken into account as income when determining the amount of maintenance owed by one former spouse to the other.
Receiving social benefits
Spouses who earned significantly less during the marriage often have to pay alimony. This is especially important for stay-at-home parents who have given up their careers to care for the children or support their spouse's financial ventures. This ruling is intended to provide greater protection and support for these individuals.
The appeals court focused on a specific provision of federal law that states that Social Security benefits are not “transferable” or “assignable.” Nevertheless, the court found that these benefits can still be counted as income in calculating child support.
This ruling could have significant implications for many welfare recipients and potentially change the financial situation of divorced people. Keep an eye on this development and consult a legal professional to understand how it might affect your situation.
A woman stands outside a U.S. Social Security Administration building in Burbank, California, on November 5, 2020. A Colorado ruling has determined that Social Security benefits can be considered income when making child support payments. VALERIE MACON/AFP via Getty Images
Colorado State Judgment on Social Security and Child Support
In a recent case, Colorado retiree Riley McClure and his defense argued that Social Security benefits should not be used to calculate alimony paid to his ex-wife and should not be counted as income.
Judge's decision
Judge David H. Yun ruled that a statutory provision requiring Social Security benefits as income to be contingent on alimony was more important in cases like McClure's. That means Social Security benefits can actually be taken into account when determining alimony.
Impact of the judgment
Judge Yun wrote that judges “may also take into account Social Security pension rights and other non-transferable government benefits when determining alimony or child support payments, even if the order effectively results in an indirect assignment of those rights.”
The central theses
- Social security benefits can be considered as income for the payment of maintenance payments.
- This ruling may affect pensioners who pay maintenance and receive social benefits.
- Judges have discretion to include social security and other non-transferable government benefits in calculating alimony or child support.
In McClure's case, his Social Security benefits would continue to be counted in calculating spousal support even after he reached retirement age and began relying on those benefits.
Impact on seniors
Retirees who receive Social Security benefits and are responsible for paying alimony may find that their benefits, which were not previously considered income, could now affect the amount of their monthly payments to their former spouses, meaning they may end up paying significantly more.
Legal challenges from former spouses
Former spouses who receive alimony may have a legal basis to contest their existing payments. If Social Security benefits were not properly included as part of income, they could potentially receive higher payments.
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