IM-146 DOMESTIC RELATIONS ORDERS FOR MO HEALTHNET FOR THE AGED, BLIND, AND DISABLED (MHABD) AND MAGI

Department of Social Services
Family Support Division
PO Box 2320
Jefferson City, Missouri

TO:  ALL FAMILY SUPPORT OFFICES

FROM:  REGINALD E. McELHANNON, INTERIM DIRECTOR

SUBJECT:  DOMESTIC RELATIONS ORDERS FOR MO HEALTHNET FOR THE AGED, BLIND, AND DISABLED (MHABD) AND MAGI

MANUAL REVISION #104

0805.015.30

0410.015.10

1805.030.20.05

 

DISCUSSION:

The purpose of this memo is to introduce policy regarding Domestic Relations Orders (DRO).  A DRO is a court ordered division of property granting a spouse or dependent ownership of property or a portion of the property in the event of a divorce. 

Pensions and other retirement plans may be treated as property and divided after a divorce as a result of a DRO.  If this is the case, income resulting from the divided pension or retirement plan will belong to the individual who owns the property after the divorce.

Note:  A qualified domestic relations order (QDRO) is a common type of DRO utilized by non-government employers.

Example:  Miranda’s years of service entitle her to a $2400 monthly pension from the Sunflower Farms Retirement Plan.  As a result of a divorce, her pension is subject to a QDRO that stipulates her ex-spouse, Jeff, is entitled to 25% of her pension, or $600 per month.  Miranda’s countable monthly pension income is $1800.  Jeff’s countable monthly pension income is $600.

Do not budget income resulting from a DRO in the same way as alimony (maintenance) or child support.

MHABD section 0805.01530 Unearned Income, SAB section 0410.015.10 Unearned Income, and MAGI section 1805.030.20.05 Income Included Under MAGI have all been updated with this information.

Note:  The title of 0805.1530 Non-Earned Income has been updated to Unearned Income.

 

NECESSARY ACTION:

  • Review this memorandum with appropriate staff.

 

RM/ers