When a person is awarded alimony, or spousal support, in a divorce, the payments can have an effect on Social Security disability benefits. If the recipient of alimony is also receiving Social Security disability benefits, the amount of the benefits may be reduced. This is because alimony is considered income for purposes of Social Security disability benefits.
The reduction in benefits will depend on how much alimony the person is receiving. For example, if a person receives $500 per month in alimony, their Social Security disability benefits will be reduced by $250 per month. If a person receives $1,000 per month in alimony, their Social Security disability benefits will be reduced by $800 per month. The reduction in benefits will continue until the total amount of alimony received reaches 50% of the monthly benefit amount.
It should be noted that only actual cash payments made to the recipient are counted as income for purposes of reducing Social Security disability benefits. So, if someone pays for the recipient's housing or other expenses instead of giving them cash, those payments would not count towards the reduction in benefits.