David Helverson, Vice President Investment Officer, who holds the Accredited Domestic Partnership Advisor Designation, with Wells Fargo Advisors, LLC in Chicago, seeks to address the unique financial challenges faced by domestic partners. This is the eighth article in a continuing series.
As a result of the recent Supreme Court decision to strike down the Defense of Marriage Act, federal-agency rules, laws and benefits are evolving rapidly and significantly for same-gender couples. In an article published shortly before the Court ruling, I discussed DOMA’s limits to same-gender spousal benefits; since then, the Social Security Administration has issued the following statement on its official website: “Social Security is now processing some retirement spouse claims for same-gender couples and paying benefits where they are due. In coming weeks and months, we will work with the Department of Justice to develop and implement additional policy and processing instructions. If you believe you may be eligible for Social Security benefits, we encourage you to apply now to protect you against theloss of any potential benefits. We will process your claims as soon as additional instructions become finalized.” While just short of full recognition, it’s possible that same-gender couples may eventually receive full federal retirement benefits.
As encouraging as these developments are, same-gender couples, like opposite-gender couples, still face the possibility of financial loss due to disability. In some situations, the need for income replacement and dependent care may in fact be higher for same-gender couples if their biological families have become emotionally estranged or have disowned them. Extra income may be needed to purchase assisted-living and home health services that would, in more supportive families, be provided free of charge. The disabled’s partner may need to contract for such services if the partner, remaining employed, constitutes the sole source of income. In cases where the disabled was the sole source of income, then disability and long-term-care insurance are even more essential to financial stability and health.
