Law...

Disability Benefits

Let's say Frank Roosevelt becomes disabled on the job. He starts receiving disability benefits. Frank and Ellen get divorced. Does Ellen get a share of the disability benefits?

Some states say disability benefits are property that may be divided, and some states say they are separate property.

Here are some factors that have been mentioned in making the determination:

• If the compensation is for "personal injury," a few states will say that is separate property, the rest will say that it is still property that may be divided.
• If the compensation is for "loss of earnings," most states will say that is property that must be divided.
• If the last insurance premium was paid before separation, the proceeds are more likely to be property that must be divided.
• If the premiums convert to pension benefits at retirement age, then the retirement benefits might be considered to be marital property which must be divided.

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