I represent Wife. Husband has been in a nursing facility for a few years due to medical issues. Husband receives Medicaid who administers Husband's SSD benefits. Medicaid has allowed Wife to receive 100% of Husband's SSD benefits (directly) for the past few years as a "spousal recipient." Husband's nursing facility expenses are completely covered by Medicaid and Medicaid will not allow the nursing home to intercept Husband's SSD benefits.
The parties want to get divorced but also want to continue this arrangement post-divorce. My research leads me to believe that Wife will not be eligible to receive these funds after the divorce. She is not (and has never been) a "Representative Payee" for husband; rather, Medicaid classified her as the "spousal recipient" which, apparently, does not have a requirement to account for the funds.
I spoke to representatives from both the Social Security Administration and Medicaid. The SSA representative stated husband can "do whatever he wants" with the SSD funds so long as the funds are deposited into his account first. I think this means the nursing facility would intercept the funds and Wife would not receive anything.
The parties have 2 children (the youngest will be turning 18 this year and will therefore no longer receive the dependent SSD benefits). Wife relies on these benefits to support the household. The parties previously liquidated their retirement accounts and savings to pay for husband's medical costs.
Is there a way that the parties can implement their tentative agreement to be divorced while still permitting Wife to receive the entirety of Husband's SSD benefits? I was thinking a Judgment of Divorce from Bed and Board, but I know those are always "iffy."
Any help is most appreciated. Thanks in advance!
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Gregory Thomlison Esq.
Toms River NJ
(732)736-8100
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