In Simmons v. Simmons, the South Carolina Court of Appeals was faced with the issue of whether the Family Court may divide Social Security benefits in property distributions. The parties in this case reached an agreement which provided in part that the wife would receive a portion of the husband’s Social Security benefits in the future.
The Social Security Act (42 U.S.C. Sec. 407(a)) (1998) provides that Social Security benefits “shall not be transferable or assignable.” The U.S. Supreme Court found that section 407(a) imposed a “broad bar against the use of legal process to reach all social security benefits.” Philpott v. Essex County Welfare Bd., 409 U.S. 413 (1973).
Because the Social Security Act preempts state law, the Family Court lacked subject matter jurisdiction to divide husband’s Social Security benefits in a property distribution. Inasmuch as the trial court did not have subject matter jurisdiction over Husband’s Social Security benefits, it could not approve the settlement agreement dividing such benefits. The full opinion can be found here.