Worried In TX

Both my spouse and I are on Medicare and we are drowning in medical debt. It has been suggested to us that we divorce but continue to live in the same house (10 yr. mortgage remains but home is dilapidated - but it is better than being homeless) and that by going on Medicaid instead of our current Medicare, that as long as the house is signed over to the state upon the death of the last remaining "occupant" - that our medical bills would decrease and we'd be able to keep the house.

BTW: only husband's name is on the mortgage as wife & her ex-husband had to declare bankruptcy. Current husband has stellar credit rating.

Is any of this true? Wouldn't things smell 'fishy' that a once married couple suddenly divorces, yet both remain at same address? The address would show up on all the various forms needing to be filled out, etc.

Afraid of what would happen if caught...is this fraud?

Wife needs medical treatments on a reg. basis that are very expensive, hence why they are drowning in medical debt as they keep using credit card to pay their portion that their ins. co. under Medicare does not pay.

Scared to do these suggestions if not legal.

Thank You for your time & Anxiously Await a Reply if Possible.

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Nov 11, 2014
Divorce and Medicaid
by: Mo (per Gabriel Heiser)

(i) Medicaid must recognize a legal divorce, even if the couple continues to reside in the house together, but (ii) the divorce must be "fair and equitable," meaning that the court could well divide the house ownership between the spouses. If the court does not do so, there is a risk that Medicaid will deem the lack of transfer of 50% of the house as a gift from the husband to the wife. So it is important that any divorce lawyer involved be sure to co-counsel with an expert on Medicaid law about this issue.

Once the divorce is final, the house will no longer be an issue. Note that a house is never "assigned to the state," although indeed it may have to be sold to pay back the state for Medicaid payments made, once the recipient dies, if the recipient owned a home that was exempt during their life.

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