Question:
I need information about divorcing my husband so he can get Medicaid coverage for nursing home care. Would I be able to retire without losing my pension, to live off of? I also own a house — what would be the issue with our home as far as me living there?
Response:
It’s almost never necessary to get divorced to obtain Medicaid coverage of nursing home care for a spouse. If your husband moves to a nursing home and spends down his assets to $2,000, he will have to pay his income to the facility. But there will be no claim on your income. There will also be no claim on your home, though it’s better that it be in your name alone rather than in joint names.
However, you will have to spend down your assets other than your home to approximately $150,000. While you may be able to protect more than this amount through a divorce, often spouses of nursing home residents shelter surplus funds by purchasing Medicaid-compliant annuities.
In terms of your pension, if you are receiving monthly payments, you will be able t keep them with no obligation to pay any amount towards your husband’s care in the nursing home. If instead you’re talking about an IRA or 401(k) plan, the rules can differ from state to state. Some states require that such funds be spent down to the $150,000 asset limit and some exempt them from such a spend down.
These are the general rules. To craft a plan that works best for you in your situation, I’d recommend consulting with a local elder law attorney. You can find one at www.elderlawanswers.com.
Also, if you want to get divorced for other reasons that’s a totally different matter.
