Page 8

Chapter: 1800 Income Program: FS 3 3. Income may be unavailable due to legal restrictions or factors beyond the control of the individual. In both these situations, the eligibility specialist must request supporting evidence and make an independent assessment regarding availability based on the evidence presented. Additional guidance may be requested from the Region or Circuit Program Office, Headquarters, or Circuit Legal Counsel. 1810.0112 Payments to Joint Owners (FS) Payment to joint owners is a payment made to two or more individuals. A document, such as a single or combined Social Security check for a couple or to a parent on behalf of two or more children, indicating the amount due each owner is generally sufficient verification of ownership.

In the absence of specific documentation, divide the income minus allowable expenses by the number of beneficiaries to determine the income amount for each individual. 1810.0114 Monies Legally Obligated to the AG (FS) Monies legally obligated (owed) to the assistance group that are diverted by the payor to a third party for an assistance group expense are included as income. They are not excluded vendor payments. The distinction is that the person or organization paying expenses on behalf of an assistance group uses funds that are legally obligated (owed) to the assistance group.

Examples of monies that are legally obligated and included are:

1. wages earned by an assistance group member that are diverted to pay a third party on the assistance group's behalf including wages diverted for legal reasons such as wage garnishment for child support or IRS; 2. all or part of a Temporary Cash Assistance benefit normally provided to the assistance group that is diverted to a third party or protective payee; 3. court ordered support payments, alimony or other legal binding agreements that are diverted by the payor of the funds to a third party, for an AG expense; and 4. funds owed to an assistance group by an employer, agency, or former spouse that are diverted to a third party to pay for an assistance group expense.

The monies are not legally obligated when the person or organization provides housing or pays assistance group expense(s) exclusively from their own resources or funds. This type of payment is an example of an “excluded vendor payment”. 1810.0116 Court Ordered Payments (FS) Money deducted or diverted from court ordered support, alimony, or other legally binding agreement and paid to a third party for an assistance group expense will be included as income. However, if the payment is ordered by the court to go directly to the third party rather than the assistance group, the payment will be excluded as a vendor payment.

Example: In the court order, the spouse was ordered to pay $200 child support each month. He was not ordered to pay the mortgage payment. If the spouse pays the mortgage directly to the mortgage company, in addition to his regular court ordered child support payment, the mortgage payment is considered a vendor payment and is excluded as income. If the spouse took the $200 he was to pay in child support and paid the mortgage payment instead, then the child support income would continue to count as income to his spouse since the $200 was court ordered support and this income was diverted to pay the mortgage.