Presents Planning for Divorce when - PowerPoint Presentation

Slide1

Presents

Planning for Divorce when there are Children with Special Needs

WithBeth C. Manes & Jamie Von EllenSlide2

www.specialneedsplanners.com

INTRODUCTION80-85% of marriages where there are special needs children born of the marriage, end in divorceThere needs to be constant education between the special needs bar and the matrimonial bar.Slide3

FIRST CONTACT WITH CLIENTPlanning or guardianship client getting divorced.

Divorcing client in need of planning or guardianship.Timing of involvement. Ideally, at the beginning of the process.Slide4

SHARING VOCABULARY WITH MATRIMONIAL ATTORNEYS

Child: an individual who is under 18, or under 22 attending school regularly who is not married or head of household (POMS SI 00501.010, SI 00501.020)Adult child: a son or daughter who is no longer a child (POMS SI 00830.420A.5)Child support: payment from a parent to or for the benefit of a child to meet the child’s needs for food and shelter (POMS SI 00830.420A.1)Custodial parent: the parent who has care, guardianship, or custody of the child (POMS SI POMS SI 00830.420A.6)Slide5

FAQ: What issues do we need to address with respect to our special needs child and our divorce?

First step is to identify the specific needs of the child. Try to project into future. A life care plan is an excellent place to start.Educate your client about the divorce process and how the child’s special needs will affect it.Slide6

ISSUES AFFECTED BY A CHILD’S SPECIAL NEEDS

Custody and timesharingChild supportAlimonyPrivate educationHealth insuranceEmancipationLife InsuranceDependency ExemptionsEquitable DistributionSlide7

CHILD SUPPORT AS INCOME

Whose income is it?Payments made on behalf of the child are unearned income to the child, which will reduce SSI payments dollar for dollar. Payments for an adult child received by the parent and not given to the child are considered income to the child. (This may vary by state.)Payments given to an adult child is income to the child.Slide8

CHILD SUPPORT AS INCOMEWhat about in-kind support payments?

1/3 of the amount of child support that is received in the form of food and shelter is excluded from income the remaining 2/3 is considered ISM (POMS SI 00835.350C) any in-kind support payment that is not food or shelter would not be income to the child (POMS SI 00830.420 B 2)Slide9

CHILD SUPPORT AS INCOMEProtect child support by assigning it to a trust.

assignment must be irrevocable have the court order it both court order and trust should be reported to Social Security (and Medicaid if the child is receiving Medicaid)Slide10

FAQ: How do we address support if our child may never be emancipated?

Best addressed prior to final JOD. Plan for worst case scenario. New Jersey case J.B. v. W.B, decided August 20, 2013. Slide11

FAQ: How should I title the beneficiary designation of my life insurance policy?

Third party special needs trust is the best way to go, if possible. Can be same trust for both parties’ policies. Discuss trustees.Slide12

FAQ: If our child is never emancipated, who will make decisions for him?

Try to incorporate guardianship into final divorce agreement. Who will be guardian? Can be both parents. Talk time frame. Put a safety net in place if agreement not reached.Slide13

PRACTICE TIP: TEAM UP WITH MATRIMONIAL BAR

Be and have a referral sourceBe a resource:Psychologists and other therapistsFinancial advisorsJoint programmingSlide14

Presents

Planning for Divorce when there are Children with Special NeedsWithBeth C. Manes & Jamie Von EllenSlide15

Contact

Beth C. Manes: BManes@wvblaw.comContact ASNP:support@specialneedsplanners.com

Questions?

www.specialneedsplanners.com

Contact

Jamie Von Ellen: JVonEllen

@wvblaw.com