The Colorado Court of Appeals recently ruled that Social Security benefits can be considered as income in calculating alimony. This decision could raise the alimony payment for those receiving Social Security benefits, marking a key change in family law.
Generally, the higher-earning ex-spouses during marriage make alimony payments, serving as a safety net for those who halted careers for family reasons. Alimony laws, however, differ by state, and legal advice is recommended for understanding the obligations of divorce proceedings.
The Colorado court took a stance against a federal law section implying that Social Security allowances cannot be assigned or transferred. In contrast, it contended that these benefits should be seen as income when settling alimony disputes.
In a legal dispute, pensioner Riley McClure objected to his Social Security benefits included in his ex-spouse’s alimony calculation. However, Judge David H. Yun affirmed the stance that Social Security benefits should be considered as income for alimony.
Social Security in Colorado alimony calculations
Consequently, Mr. McClure’s government benefits were factored into the final alimony amount, solidifying the court’s position on the issue.
Judge Yun’s decision implies Social Security retirement benefits can indirectly influence the awarding of maintenance or child support. His ruling resulted in McClure’s Social Security benefits being considered in determining his spousal support payment, which led to changes in how his spousal support was calculated. This sets a potential precedent for similar future cases.
This could impact other senior citizens in similar scenarios, possibly leading to larger alimony payments for those receiving Social Security. Conversely, alimony beneficiaries could dispute for higher payments if their ex-spouses fail to declare Social Security income correctly.
Kevin Thompson, founder/CEO of 9i Capital Group, stated that many states and courts already include Social Security as income during alimony calculation. Resistance is expected, particularly from seniors dealing with increasing living costs, as their Social Security benefits might indirectly be used for alimony payments. The impacts on recipients’ financial stability and welfare could spark debates on whether Social Security payments should be part of alimony decisions.
