Social Security Disability Insurance (SSDI) benefits are not typically divided in a divorce, due to their status as a personal, federally protected benefit. However, the way in which you manage your payments, including depositing them into a joint bank account, can impact whether or not they are subject to division during the divorce process. In general, SSDI benefits are not subject to division during a divorce because of their status as a federal benefit. However, payments can still impact matters like alimony and child support. Please continue reading to learn whether your SSDI benefits will be subject to division in your divorce proceedings and how an experienced New Jersey SSDI benefits lawyer at The Law Offices of Sheryl Gandel Mazur can work to protect them at all costs.
What Will the Division of Assets in My Divorce Proceedings Entail?
With the division of assets in your divorce proceedings, the New Jersey family court may categorize your and your former spouse’s assets as separate or marital assets. For one, separate assets are considered those only owned by one spouse, which were likely acquired by the one spouse before the marriage, after the separation, or as an individual gift or inheritance. Secondly, marital assets are those owned by both spouses, which were likely accumulated throughout the marriage.
Next, the judge may work under New Jersey’s equitable distribution law. This law holds that each spouse is to get a fair share of the marital assets. To emphasize, separate assets are not included in this split. Further, this “fair” split does not necessarily mean an equal, 50/50 split.
Key Principles of Equitable Distribution in New Jersey
- Courts divide marital property based on fairness, not equality
- Factors considered by the Essex County Superior Court when dividing marital assets include:
- The length of the marriage
- The financial contributions of each spouse, including income and earning capacity
- The standard of living established during the marriage
- Separate property is generally considered the property of the spouse that owns it, unless it has been commingled with joint assets
- New Jersey utilizes equitable distribution rules, not community property
Will My SSDI Benefits Be Subject to Division in My Divorce Proceedings?
Now having this understanding, you may still wonder whether your SSDI benefits will be considered a marital asset that is thereby to be fairly divided in your divorce. Well, the short answer is that these monthly payments are generally not viewed as marital assets. However, this may get more complicated if you have been depositing your checks into a joint bank account under both your and your former spouse’s names. This is why we recommend that, if you have not done so already, you deposit your checks in a separate bank account established exclusively to hold your government benefits.
In addition, the New Jersey family court may consider your monthly SSDI benefits payments as one of your sources of income. Therefore, this may affect how much spousal support and child support you may be ordered to pay in your divorce decree.
The bright side to all this, however, is that you may rest assured knowing that the amount of SSDI benefits payments you receive every month will not alter in the aftermath of your divorce. This is because these payment amounts are based on your work record rather than being need-based.
When SSDI Benefits Are Not Subject to Division
- SSDI benefits are federally protected and generally cannot be subject to division during a New Jersey divorce
- In accordance with federal law (42 U.S.C. § 407), Social Security benefits are non-transferable and cannot be legally divided
- Courts in New Jersey recognize SSDI benefits as a non-divisible asset, even if benefits begin accumulating during the marriage
- A spouse cannot receive a portion of SSDI payments through equitable distribution
- SSDI may constitute income when calculating domestic support obligations
Can SSDI Benefits Be Indirectly Impacted in an Essex County Divorce?
For those in Bloomfield, the Caldwell’s, or any other community in or around Essex County, understanding the actions that can expose your SSDI benefits to division is critical. While the court cannot order the explicit division of your funds, commingling the income you receive from these payments can result in division.
Situations Where SSDI May Become Vulnerable
- Depositing SSDI payments into a jointly held bank account
- Using SSDI benefits to pay for marital expenses on a regular basis
- Failing to keep clear records that show separation between SSDI benefits and marital funds
- Mixing SSDI payments with other sources of marital income
How Can I Protect My SSDI Benefits During a Divorce?
Taking proactive steps can help ensure that your SSDI benefits remain protected throughout the duration of your divorce.
Practical Steps to Shield Benefits
- Ensure SSDI payments are deposited into a separate bank account
- Do not mix benefits with marital funds
- Keep clear, accurate financial records
- Discuss your legal options with an experienced SSDI attorney
Contact an Experienced Essex County Disability Attorney
All in all, you may be intimidated by the proceedings that lie ahead of you. But the best way to relieve some of this worry is to have a skilled New Jersey SSDI benefits lawyer stand by your side throughout. At The Law Offices of Sheryl Gandel Mazur, we understand how overwhelming this process can be to navigate, which is why we are proud to represent clients in West Caldwell, Verona, the surrounding Essex County area, and throughout the state of New Jersey. When you need assistance, do not hesitate to contact our firm today to learn how we can represent you during these difficult times.
