
Safeguarding Your Child’s Future After Divorce
Parenting a child with disabilities brings immeasurable love—and significant responsibility. When divorce enters the picture, California parents face an added layer of complexity: ensuring that child support provides meaningful care without compromising eligibility for public benefits.
This legal tightrope is especially critical in San Diego, where families rely on programs like SSI, Medi-Cal, IHSS, and regional center services to help cover care and support. Many parents are shocked to discover that a traditional child support order—while well-intentioned—can disqualify their child from these life-sustaining benefits.
The solution lies in creating a court-approved Special Needs Trust (SNT) that works in tandem with your child support obligations. At Minella Law Group, we guide families through this exact process—ensuring your divorce plan protects your child’s long-term financial stability and legal rights.
Divorce, Disability, and Financial Protection in California
When a child has a significant disability, public programs often become a financial lifeline. These programs, however, have strict means-based eligibility requirements, meaning even modest increases in income or assets can render your child ineligible.
For example:
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SSI (Supplemental Security Income) is reduced dollar-for-dollar based on income.
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Medi-Cal imposes income and asset limits that can be unintentionally breached.
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Regional center and IHSS services may be tied to SSI or Medi-Cal eligibility.
Now add child support: a regular monthly payment from one parent intended to help with daily needs. Seems helpful, right?
Not always. Direct child support payments count as unearned income in the eyes of the Social Security Administration (SSA). If those payments exceed a minimal threshold, they can immediately cut off eligibility for SSI—and, by extension, Medi-Cal and related services.
The Hidden Risk: When Child Support Undermines Public Benefits
Without legal planning, child support payments that are meant to help your child can inadvertently become a legal and financial hazard. Here’s how:
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Direct child support payments (to the custodial parent or the child) are treated as income to the child under federal law.
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If the child is over 18 and receiving SSI, those payments can reduce or eliminate monthly benefits.
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Once SSI is lost, Medi-Cal coverage may disappear as well, leaving parents responsible for expensive medical care or therapies.
This legal loophole blindsides many families during divorce—especially those who are unaware of how support orders interact with disability law.
Fortunately, California law allows a solution: structuring the child support payment so that it goes directly into a Special Needs Trust.
Understanding the Role of a Special Needs Trust (SNT)
A Special Needs Trust (SNT) is a legally recognized tool that allows parents, relatives, or courts to set aside funds for a child with disabilities without jeopardizing that child’s eligibility for public benefits.
Key Characteristics of an SNT:
- The trust is not owned by the child, and therefore does not count toward asset or income limits for SSI or Medi-Cal.
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Funds can be used to supplement public benefits (not replace them), improving quality of life without triggering disqualification.
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An appointed trustee—a parent, professional, or third party—manages distributions to ensure compliance with federal and state rules.
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Courts can order child support payments to flow directly into the trust, protecting benefits while ensuring support is provided.
In divorce cases, this type of trust becomes the bridge between fulfilling child support obligations and preserving access to critical services.
How to Direct Child Support to a Special Needs Trust
California courts recognize the importance of preserving public benefits for children with disabilities. As a result, they allow and encourage the payment of child support directly into a court-approved SNT—but only if the correct procedures are followed.
Here’s how it works:
- Establish a First-Party SNT
A first-party Special Needs Trust is created using the child’s assets or income—here, that means child support. The trust must:- Be irrevocable
- Name the child as the sole beneficiary
- Be established before the child turns 65
- Include a Medi-Cal payback provision (required under federal law)
- Request Court Approval in the Divorce Judgment
The divorce decree must:- State the obligation to pay child support
- Specify that the support will be paid directly to the SNT
- Be accompanied by judicial approval of the trust documents
- Set Up Trust Management and Oversight
Appoint a trustee familiar with SNT compliance—this can be a family member, professional fiduciary, or corporate trustee. Their role is critical in ensuring proper spending and annual reporting. - Notify Public Agencies
Social Security, Medi-Cal, and regional centers must be notified of the trust and support order structure. Legal coordination ensures seamless benefit continuation.
At Minella Law Group, we draft compliant trust language, structure the child support order, and obtain court approval—all while guiding you through communication with relevant agencies.
Key Benefits of Using a Special Needs Trust in Divorce
The benefits of directing child support into a Special Needs Trust go far beyond legal compliance:
✅ Preserves Public Benefits
An SNT keeps your child eligible for SSI, Medi-Cal, and IHSS—programs that provide financial support, in-home care, therapies, and more.
✅ Covers Supplemental Expenses
The trust can pay for things public benefits don’t: therapy, equipment, camp, travel, technology, tutoring, and personal care items.
✅ Provides Oversight and Protection
A trustee ensures funds are used appropriately and in the child’s best interest, reducing the risk of financial exploitation or mismanagement.
✅ Creates Long-Term Security
An SNT can accept other contributions—gifts, inheritances, lawsuit settlements—making it a powerful estate planning tool beyond child support.
✅ Fulfills Legal Obligations
By routing child support to an SNT, you meet your financial responsibilities without harming your child’s benefit eligibility.
ABLE Accounts: A Supplementary Tool for Families
In addition to SNTs, California families may also consider an ABLE account (Achieving a Better Life Experience) as part of their planning.
What Is an ABLE Account?
An ABLE account is a tax-advantaged savings account for individuals with disabilities, established under federal law and available in California. It allows eligible individuals to save and spend money without losing SSI or Medi-Cal eligibility—up to certain limits.
Key Features:
- The beneficiary can save up to $100,000 without affecting SSI
- Contributions are made post-tax but grow tax-free
- Funds can be used for qualified disability expenses, including housing, education, and health care
- Anyone can contribute (including parents, relatives, or friends)
Comparing Special Needs Trusts vs. ABLE Accounts in Divorce
Both tools are powerful—but serve different functions:
| Feature | Special Needs Trust (SNT) | ABLE Account |
|---|---|---|
| Max Contribution | Unlimited | $17,000/year (2025) |
| Benefit Impact | Exempt from SSI/Medi-Cal limits | Up to $100,000 exempt for SSI |
| Control | Managed by trustee | Controlled by beneficiary or representative |
| Can Receive Child Support? | Yes | Not ideal (may be treated as income) |
| Use in Divorce? | Excellent for court-ordered support | Supplementary tool only |
📌 Conclusion: Use an SNT for court-ordered child support. Use an ABLE account as a supplemental savings tool for day-to-day independence.
Practical Steps for Divorcing Parents in San Diego
- Hire a Family Law Attorney Experienced in Disability Planning
- Not all divorce lawyers understand the complexities of disability-related child support. Work with one who does—like Minella Law Group.
- Establish a Court-Approved Special Needs Trust
- We will help draft, review, and obtain judicial approval for a compliant SNT to hold support funds.
- Incorporate the Trust into the Divorce Decree
- Your support order must reflect the new structure. We’ll draft exact language to satisfy court and agency requirements.
- Coordinate With SSA, Medi-Cal, and Other Agencies
- We handle communication to ensure benefits continue uninterrupted.
- Educate Family and Caregivers
- Anyone who may wish to gift or assist your child financially needs to understand that direct transfers could cause harm. All assistance should go through the trust.
Why Local Legal Experience Matters in San Diego
Disability and family law are state-specific—but implementation is local. In San Diego County, judges, regional centers, and Medi-Cal eligibility offices each have unique practices and expectations.
Our team at Minella Law Group:
- Understands how local judges handle support orders involving disabled children
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Knows how to work with San Diego County Health and Human Services
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Maintains relationships with regional centers and probate court administrators
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Has crafted SNT and child support structures for a wide range of families—from autism spectrum to complex medical needs
Having local counsel who speaks the language of both family law and disability law can make the difference between benefit protection and benefit loss.
The Bottom Line: Avoiding Pitfalls with Child Support and Disability
A standard child support order may unintentionally hurt the child it’s meant to protect. Without careful planning, your child could lose access to SSI, Medi-Cal, or IHSS—placing the burden of care and medical expenses back on your family.
With proper legal strategy—including a court-approved Special Needs Trust—you can protect your child’s public benefits while fulfilling your support obligations.
Protect Your Child’s Benefits and Financial Security
Divorcing with a disabled child means making hard decisions. Don’t make the mistake of overlooking how child support interacts with public benefits.
At Minella Law Group, we help San Diego families:
- Draft and obtain court approval for Special Needs Trusts
- Structure child support payments to preserve benefits
- Coordinate with SSA and Medi-Cal
- Advise on ABLE account use
- Secure your child’s future with legal clarity and care
📞 Call Minella Law Group today at 619-289-7948 to schedule a confidential consultation with one of our family law specialists. We’ll listen to your concerns, assess the situation, and create a clear strategy tailored to your goals.
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