Divorce: Be Careful What You Ask for In Property Settlement with Your Spouse If You Are An SSI/Medicaid Recipient!!!!

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If a spouse is receiving Social Security Income benefits and Medicaid, they should be extremely careful in settling and litigating their partition (division) of community property under Louisiana law. SSI and Medicaid are needs based programs. Generally, a recipient is only allowed one car, one house, furniture, clothing, and less than $ 2,000.00 in any other assets.

The assets that a spouse received from the division of community property may not be exempt assets for eligibility purposes. This can have serious consequences by rendering you ineligible for SSI and Medicaid benefits.

The SSI/ Medicaid recipient should make sure that:

  1. The assets they are receiving from a partition of community property are exempt assets for SSI and Medicaid eligibility purposes, or
  1. They must have a specific plan to immediate convert assets or spend down assets within the month that you receive the settlement to maintain your eligibility for SSI and Medicaid benefits.

If you are an SSI and/or Medicaid recipient that is involved in divorce litigation regarding division of property, you should consult a Medicaid planning attorney as soon as possible.

-Losavio & DeJean

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