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TEN THINGS TO KNOW ABOUT THE IMPACT OF DIVORCE ON DISABLED CHILDREN

by: Begley Law Group

  1. Child Support.  In Family Court, it is common for the Judge to award child support from one parent, usually the non-custodial parent but not always, to help meet the support needs of the child.  Typically, this obligation ends when the child is 18 years of age. 
  2. Disability.  However, if the child has disabilities, the support obligation continues after age 18 when the child with disabilities cannot support themselves.
  3. Supplemental Security Income (SSI).  SSI is a monthly cash assistance program paid to individuals with disabilities and older adults who have little or no income or resources.  Rules of eligibility include:
    1. Resources.  Generally, an applicant for SSI may not have more than $2,000 in resource. 
    1. Income.  The individual’s gross income must generally be less than $2,073 per month.  There is a general exclusion of $65 per month of earned income and one-half of the remaining income is disregarded.
    1. Unearned Income.  Unearned income includes Social Security benefits, pensions, unemployment, or disability payments.  The first $20 of unearned income is disregarded.  Unearned income usually reduces SSI dollar for dollar.
  4. Benefit.  The maximum benefit for SSI is $994 for an individual and $1,491 for a married couple.  In addition, New Jersey has a $31.25 monthly supplement.
  5. Potential Recipients.  Child support payments include:
    1. Direct payment to child.
    1. Direct payment to custodial parent.  This supposes that the non-custodial parent is paying the child support to the custodial parent.
    1. Third Party Special Needs Trust.
    1. Self-Settled Special Needs Trust.
  6. Special Needs Trusts.  There are two types of Special Needs Trusts.  One is a Third Party Special Needs Trust (TPSNT) where the money funding the trust is from a third party.  This does not work in the child support situation, because technically the money belongs to the child. 
  7. Self-Settled Special Needs Trust (SSSNT).  An SSSNT is similar to a TPSNT.  However, the money funding the SSSNT theoretically belongs to the child and could be used to receive a child support obligation.
  8. Beneficiary.  The safest and most common way to handle child support is to obtain a court order irrevocably assigning the child support to an SSSNT.  If the money is directed to the child, this would reduce or eliminate the child’s SSI.
  9. Deeming.  If the child support is directed to the custodial parent, this would be deemed to the child until the child is 18 years of age. 
  10. TPSNT.  If the non-custodial parent voluntarily establishes a TPSNT, this avoids the Medicaid payback.  However, in most cases it would be difficult to get the parties to agree to a voluntary payment.
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