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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. You can put your photos anywhere you like... When someone steals it they know it doesn't belong to them. And, a man getting a divorce is automatically not a nice guy...? That's ridiculous. Since when is need of money a conflict of interest? That would mean that no one should have a job unless they are already financially solvent without a job... A photographer is also under no obligation to use a watermark (again, people know when a photo doesn't belong to them) or provide contact information. Hey, he didn't make it easy for me to pay him so I'll just take it! Well heck, might as well walk out of the grocery store with a cart full of food because the lines are too long and you don't find that convenient. "Only in Indiana." Oh, now you're passing judgement on an entire state... What state do you live in? I need to characterize everyone in your state as ignorant and opinionated. And the final bit of ignorance; assuming a photo anyone would want is lucky and then how much does your camera have to cost to make it a good photo, in your obviously relevant opinion?

  2. Seventh Circuit Court Judge Diane Wood has stated in “The Rule of Law in Times of Stress” (2003), “that neither laws nor the procedures used to create or implement them should be secret; and . . . the laws must not be arbitrary.” According to the American Bar Association, Wood’s quote drives home this point: The rule of law also requires that people can expect predictable results from the legal system; this is what Judge Wood implies when she says that “the laws must not be arbitrary.” Predictable results mean that people who act in the same way can expect the law to treat them in the same way. If similar actions do not produce similar legal outcomes, people cannot use the law to guide their actions, and a “rule of law” does not exist.

  3. Linda, I sure hope you are not seeking a law license, for such eighteenth century sentiments could result in your denial in some jurisdictions minting attorneys for our tolerant and inclusive profession.

  4. Mazel Tov to the newlyweds. And to those bakers, photographers, printers, clerks, judges and others who will lose careers and social standing for not saluting the New World (Dis)Order, we can all direct our Two Minutes of Hate as Big Brother asks of us. Progress! Onward!

  5. My daughter was taken from my home at the end of June/2014. I said I would sign the safety plan but my husband would not. My husband said he would leave the house so my daughter could stay with me but the case worker said no her mind is made up she is taking my daughter. My daughter went to a friends and then the friend filed a restraining order which she was told by dcs if she did not then they would take my daughter away from her. The restraining order was not in effect until we were to go to court. Eventually it was dropped but for 2 months DCS refused to allow me to have any contact and was using the restraining order as the reason but it was not in effect. This was Dcs violating my rights. Please help me I don't have the money for an attorney. Can anyone take this case Pro Bono?

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