Keeping your Social Security money in a separate bank account is a really good idea.
While you don't plan on getting behind on your debts and getting a lien placed on your bank account, it can and does happen.
Social Security disability money is exempt from debtor's liens in most cases. But you must prove that all the money in your bank account came from Social Security. If you mix other funds with it, that makes it a lot more difficult.
For example, you and your husband have a joint checking account. Your Social Security check is deposited into the account each month. Your husband works and his paycheck also gets deposited into the same account. So, the funds mix and mingle.
When a creditor places a lien on the account, only your portion of the deposits are exempt. The bank has a burden of trying to decide which funds are exempt and which are not. It might seem simple, but it never is. Better to avoid the argument altogether.
Imagine that you have your own account into which you deposit nothing except your Social Security check. Not one cent of other funds ever goes into the account. This makes the entire account exempt from most liens. Most debtors, therefore, cannot touch your bank account--no matter how many judgments or liens they get against you.*
*Certain types of debt do allow liens on Social Security benefits. These include federally guaranteed loans and past due child support.
Talk to your attorney about the value of keeping your Social Security money in a separate account as opposed to "mixing and mingling."
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