Those receiving Social Security benefits may soon see a change in their alimony figures, thanks to a recent state court ruling that these benefits can be included when calculating income for spousal support.
Earlier this month, the Colorado Court of Appeals issued a landmark decision. The court ruled that under federal law, Social Security benefits can indeed be considered as income when determining the amount of alimony one ex-spouse owes to another.
Receiving Social Security benefits
Alimony is often court-mandated for ex-spouses who earned significantly less during the marriage. This is especially important for stay-at-home parents who sacrificed their career to care for the children or support their spouse’s financial endeavors. This ruling aims to offer better protection and support for these individuals.
The appeals court focused on a specific provision of federal law, which states that Social Security payments cannot be “transferable” or “assignable.” Despite this, the court found that these benefits can still be calculated as income for the purpose of determining alimony.
This ruling could have significant implications for many receiving Social Security, potentially altering the financial landscape for divorced individuals. Keep an eye on this development as it unfolds, and consult with a legal expert to understand how it might affect your situation.
A woman stands outside a U.S. Social Security Administration building on November 5, 2020, in Burbank, California. A ruling in Colorado has determined that Social Security benefits can be considered income in alimony payments. VALERIE MACON/AFP via Getty Images
Colorado Ruling on Social Security and Alimony
In a recent case, Colorado retiree Riley McClure and his legal 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 legal provision stipulating that Social Security benefits are subject to alimony payments as income was more significant in scenarios like McClure’s. This means that Social Security benefits can indeed be considered when determining alimony payments.
Implications of the Ruling
Judge Yun wrote that judges may “consider Social Security retirement benefits, as well as other non-assignable federal benefits, in awarding maintenance or child support, even in circumstances where the order effectively results in an indirect assignment of those benefits.”
Key Takeaways
- Social Security benefits can be considered income for alimony payments.
- This ruling may affect retirees who are paying alimony and receiving Social Security.
- Judges have the discretion to include Social Security and other non-assignable federal benefits in their calculations for maintenance or child support.
For McClure, his Social Security benefits would still be factored into the calculation of his spousal maintenance fees even after he reached retirement age and depended on those benefits.
Implications for Seniors
Seniors who receive Social Security benefits and are responsible for alimony payments might find that their benefits, which were not previously considered as income, could now influence their monthly payment amounts to their ex-spouses. This means they could end up paying significantly more.
Legal Challenges from Ex-Spouses
Ex-spouses who receive alimony might have a legal basis to challenge their existing payments. If Social Security benefits were not properly taken into account as part of the income, they could potentially receive increased payments.