Parents of a child with special needs know that they must plan for the child’s care and support farinto the future. This is especially so if the childis unlikely ever to be able to earn an income on their own once they are an adult.
In cases of divorce, the issue of child support comes into play. For divorcing couples who have a child with special needs, a range of additional questions will arise. Now and in the future, when the child is no longer a minor, how does child support work?Before you start the separation process, be sure to understand the answers to the following key questions.
1. What Is the Role of Child Support?
Any divorce involving minorchildren must certainlytake their needs into account. Usually, the non-custodial parent must make paymentsto the parent who has custody of the children. The purpose is toprovidethe same degree of financial security the children hadprior to their parents’ separation.
2. How Long Does Child Support Last for a Child With Special Needs?
In most cases, child support ends when children reach the age of majority and can earn their own living. However, some children willnever be able to earn an incomeof their own as a result of their disability. In these cases, child supportobligations can continue into the future, beyond childhood.
Although family law varies from state to state, in most cases courts will recognize the parents’ obligation to support their special needs child even in the caseof a divorce. This extends beyond childhood for those who require money for their care and support throughout their lives. The non-custodial parent will therefore supply a portion of this funding per the original divorce settlement.
3. Are There Exceptions to Child Support Once the Person With Special Needs Becomes an Adult?
Yes, depending on when the disability occurred. If the person became disabled as an adult, no child support payment would apply as part of a divorce settlement.
Courts will also look at the financial resources of the child with special needs. If these are sufficient to pay for their care and living expenses into the future, thenon-custodialparent may not face support obligations, unless the assets are all held in a special needs trust.
4. How Would a Special Needs Trust Affect Child Support Requirements?
Courts generally don’t take income and assets in a special needs trust into account when determining the amount of child support to award the custodial parent. (Continue reading for more information on special needs trusts.)
5. Will Ongoing Child Support Affect the Child’s Ability to Qualify for Supplemental Security Income (SSI)?
Supplemental Security Income (SSI) provides monthly payments to people with disabilities. Access to SSI depends on a person’s income and resources. So, even a small increasein an SSI recipient'sincome can cause a reduction or loss of theirbenefits.
Unfortunately, when the parent of a child who receives SSI must pay child support, this can put the child's SSI benefits at risk. Child support payments count as unearned income and may reduce the child's SSI benefit on a dollar-for-dollar basis. These payments can end up ruining the child’s access to much-needed government benefits. For example, if they lose SSI, they may then also lose crucial Medicaid benefits that come with it.
When parents of a child with special needs are divorcing, they may also have to keep in mind income “deeming” regulations. The Social Security Administration considers a person's household income when granting SSI benefits. If a child relies on SSI, the parent with whom they live after the divorce could have an impact on their benefits. To protect against these kinds of outcomes, it may make sense to create a special needs trust for the child’s benefit. The court can then order the non-custodial parent to make support payments directly into the special needs trust. This type of trust shelters the income and allows the child to retain their SSI benefits. In many cases, the support payments can then remain in the trust if the child does not immediately have use for them.
6. How Might Estate Planning Figure into This Situation?
In many cases, courts will require that the non-custodial parent provide for the special needs child in their will.
🔔Planning early makes all the difference—don’t wait.
If you are in the beginning stages of separation or divorce, and you have a child with special needs, it is important to plan long into the future. The rules regarding public benefits are complex, while family law can vary by state.
Make a point to understand these key questions fully. Then be sure to seek out a qualified special needs planning attorney near you to navigate the road ahead. They can help you and your divorce attorney arrive at a support award that will be fair to both parties while preserving the public benefits on which your child may rely.
💬Let’s have a conversation about your next steps.
At Canonico Wealth Management, I understand the unique challenges families face when navigating divorce and planning for the lifelong care of a child with special needs. I specialize in special needs planning and can help plan so that child support, estate strategies, and public benefits work together, not against each other.
📅 If you’re in the early stages of divorce or rethinking your financial plan, don’t wait. I’m here to help you build a thoughtful, long-term strategy that protects your child’s future and gives you clarity during this transition.
📞 Reach out today for a confidential consultation and let’s talk about how I can support your next steps.
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The information herein is general and educational in nature and should not be considered legal advice.Canonico Wealth Management and LPL Financial do not provide legal advice or tax services. Please consult your legal advisor or tax advisor regarding your specific situation.