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Justices decline to take divorce case involving lump sum SSDI payment

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A divided Indiana Supreme Court will let stand the lower court ruling that affirmed a lump sum Social Security Disability Insurance payment was not an asset of marriage subject to division.

The justices declined June 19 to take on transfer John Luttrell v. Melinda Luttrell, 49A02-1301-DR-85. John Luttrell claimed the trial court improperly excluded Melinda Luttrell’s lump-sum Social Security Disability Insurance payment from the marital pot. The Court of Appeals, citing Severs v. Severs, 837 N.E.2d 498 (Ind. 2005), affirmed, writing “We … agree with Melinda that the broad statement by our supreme court that ‘any assignment or division of social security benefits to satisfy a marital property settlement under Indiana law is barred by 42 U.S.C. § 407,’ is not limited to a future income stream as at issue in that case, but also applies to the lump sum payment that Melinda received.”

In his dissent, in which Justice Loretta Rush joined, Justice Steven David wrote that the justices should take the case to provide guidance on the issue of whether a lump-sum SSDI payment is a marital asset subject to division upon divorce, or is a factor to be considered. He noted that the Supreme Court has never formally responded to the issue presented on transfer, as Severs dealt with a different issue involving SSDI.

“As it stands, the potential windfall for the spouse receiving the lump-sum SSDI payment is apparent, particularly where, under most circumstances, the lump sum represents lost income that was compensated for by a combination of the other spouse stepping up and both parties doing without during the period which gave rise to the SSDI qualification. Here, Melinda Luttrell’s lump-sum SSDI payment of $14,430.75 was not factored into the trial court’s division of the Luttrell marital estate, of which the net distribution of approximately $191,000 was split 60/40 in her favor. And in the next case where this issue arises, the lump-sum SSDI payment could be greater in amount and/or percent at stake. At minimum, one party’s receipt of a lump-sum SSDI payment should be a factor for the trial court to consider when awarding attorney’s fees,” David wrote.

The Court of Appeals also reversed the lower court’s ruling that excluded from property division the student loan liabilities of the Luttrells, who co-signed for their two children. The judges noted that there was little relevant caselaw regarding the disposition of contingent liability in divorce proceedings, but believed the loans should have been considered by the trial court.

The justices declined transfer to nine other cases for the week ending June 20. They granted transfer to Ralph Andrews v. Mor/Ryde International, Inc., 20S04-1406-PL-399, June 19 and issued a decision on the Indiana Sales Representative Act that same day.

The transfer list for the week ending June 20 is available on the court’s website.

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  1. Can I get this form on line,if not where can I obtain one. I am eligible.

  2. What a fine example of the best of the Hoosier tradition! How sad that the AP has to include partisan snark in the obit for this great American patriot and adventurer.

  3. Why are all these lawyers yakking to the media about pending matters? Trial by media? What the devil happened to not making extrajudicial statements? The system is falling apart.

  4. It is a sad story indeed as this couple has been only in survival mode, NOT found guilty with Ponzi, shaken down for 5 years and pursued by prosecution that has been ignited by a civil suit with very deep pockets wrenched in their bitterness...It has been said that many of us are breaking an average of 300 federal laws a day without even knowing it. Structuring laws, & civilForfeiture laws are among the scariest that need to be restructured or repealed . These laws were initially created for drug Lords and laundering money and now reach over that line. Here you have a couple that took out their own money, not drug money, not laundering. Yes...Many upset that they lost money...but how much did they make before it all fell apart? No one ask that question? A civil suit against Williams was awarded because he has no more money to fight...they pushed for a break in order...they took all his belongings...even underwear, shoes and clothes? who does that? What allows that? Maybe if you had the picture of him purchasing a jacket at the Goodwill just to go to court the next day...his enemy may be satisfied? But not likely...bitterness is a master. For happy ending lovers, you will be happy to know they have a faith that has changed their world and a solid love that many of us can only dream about. They will spend their time in federal jail for taking their money from their account, but at the end of the day they have loyal friends, a true love and a hope of a new life in time...and none of that can be bought or taken That is the real story.

  5. Could be his email did something especially heinous, really over the top like questioning Ind S.Ct. officials or accusing JLAP of being the political correctness police.

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