ILNews

Justices decline to take divorce case involving lump sum SSDI payment

Back to TopCommentsE-mailPrintBookmark and Share

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.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. So if I am reading it right, only if and when African American college students agree to receive checks labeling them as "Negroes" do they receive aid from the UNCF or the Quaker's Educational Fund? In other words, to borrow from the Indiana Appellate Court, "the [nonprofit] supposed to be [their] advocate, refers to [students] in a racially offensive manner. While there is no evidence that [the nonprofits] intended harm to [African American students], the harm was nonetheless inflicted. [Black students are] presented to [academia and future employers] in a racially offensive manner. For these reasons, [such] performance [is] deficient and also prejudice[ial]." Maybe even DEPLORABLE???

  2. I'm the poor soul who spent over 10 years in prison with many many other prisoners trying to kill me for being charged with a sex offense THAT I DID NOT COMMIT i was in jail for a battery charge for helping a friend leave a boyfriend who beat her I've been saying for over 28 years that i did not and would never hurt a child like that mine or anybody's child but NOBODY wants to believe that i might not be guilty of this horrible crime or think that when i say that ALL the paperwork concerning my conviction has strangely DISAPPEARED or even when the long beach judge re-sentenced me over 14 months on a already filed plea bargain out of another districts court then had it filed under a fake name so i could not find while trying to fight my conviction on appeal in a nut shell people are ALWAYS quick to believe the worst about some one well I DID NOT HURT ANY CHILD EVER IN MY LIFE AND HAVE SAID THIS FOR ALMOST 30 YEARS please if anybody can me get some kind of justice it would be greatly appreciated respectfully written wrongly accused Brian Valenti

  3. A high ranking Indiana supreme Court operative caught red handed leading a group using the uber offensive N word! She must denounce or be denounced! (Or not since she is an insider ... rules do not apply to them). Evidence here: http://m.indianacompanies.us/friends-educational-fund-for-negroes.364110.company.v2#top_info

  4. A high ranking bureaucrat with Ind sup court is heading up an organization celebrating the formal N word!!! She must resign and denounce! http://m.indianacompanies.us/friends-educational-fund-for-negroes.364110.company.v2#top_info

  5. ND2019, don't try to confuse the Left with facts. Their ideologies trump facts, trump due process, trump court rules, even trump federal statutes. I hold the proof if interested. Facts matter only to those who are not on an agenda-first mission.

ADVERTISEMENT