| TO: | ALL COUNTY OFFICES |
| FROM: | JANEL R. LUCK, DIRECTOR |
| SUBJECT: | COURT ORDERS DETERMINING SPOUSAL SHARE |
DISCUSSION:
Recently, FSD eligibility specialists have reported seeing Court Orders showing that a Court determined a value for a couple's assets and determined a spousal share prior to the couple applying for MO HealthNet benefits. Eligibility specialists also report being served with legal papers notifying FSD that a case has been filed with a Court seeking to divide assets between spouses. Effective immediately, if FSD eligibility specialists receive legal papers seeking to divide assets between spouses or a Court Order dividing assets between spouses, (including orders determining spousal share for MO HealthNet vendor or HCB benefits) prior to completion of a division of assets by FSD, send the Order through normal supervisory channels to the Program and Policy Unit on an IM-14 for review. If a notice is received for staff to make an appearance in Court about the matter, notify Program and Policy at (573) 751-3507, and fax a copy of the notice to Mark Gutchen, Special Counsel for Litigation at the Division of Legal Services (DLS) at (573) 526-1484.
NOTE: There may be legal deadlines which FSD must meet in order to deal with the legal issues arising out of these types of cases. It is therefore important that these papers be referred to DLS immediately upon receipt.
Policy for division of assets and determining a spousal share can be found in Sections 1030.035.00 through 1010.035.40 of the Income Maintenance Manual. To clarify, division of assets is a policy that allows a spouse who remains in the community to protect a portion of the couple's assets while the institutionalized spouse becomes eligible for MO HealthNet benefits under HCB or vendor nursing care. A spousal share is determined by evaluating the equity value of all non-exempt assets owned by either member of the couple. The spousal share is determined by dividing the total equity by 2. The minimum spousal share is $20,328 and the maximum is $101,640. Therefore, the spousal share is the greater of $20,328 or one half of the couple's non-exempt assets not to exceed $101,640. The only exceptions to counting both spouses' assets in determining the spousal share is when the couple is separated. This does not include separations for hospitalization or to receive nursing care.
EXAMPLE: Mr. and Mrs. Colletti have combined non-exempt resources of $250,000. In November 2007, Mr. Colletti entered a skilled nursing facility and applied for MO HealthNet for the Aged, Blind, and Disabled. Mrs. Colletti provided the FSD eligibility specialist a Court Order showing that in November 2007 the Court determined that she was entitled to all of the assets as her spousal share in the event Mr. Colletti applied for MO HealthNet benefits. The Court Order is not an Order of legal separation. Mr. Colletti transferred his entire share of the assets to Mrs. Colletti per the Court Order. The eligibility specialist must send the Court Order to the Program and Policy unit with an IM-14 for review.
EXAMPLE: In November 2007, the Jackson County FSD office received a notice to appear for a hearing concerning Mr. Carr's assets in the Circuit Court of Jackson County. Mr. Carr has not applied for assistance. Upon reading the notice, the county staff learned that Mr. Carr is in a nursing facility and the hearing is concerning the determination of a spousal share for Mrs. Carr, the community spouse. The county staff immediately notifies Program and Policy and sends the notice via fax to the Division of Legal Services.
NECESSARY ACTION:
- Review this memorandum with all appropriate staff.
- Send Court Orders for spousal share to Program and Policy with an IM-14 for review.
- Notify Program and Policy and the Division of Legal Services immediately if a Court Order, Summons, Notice of Hearing or other notice to appear in Court is received.