When adoptive parents or guardians enter into a legal separation or divorce situation, it often becomes necessary to take one of the parents/guardians off the subsidy agreement. Encourage the parent/guardian to address the subsidy directly with their attorney so that the court can perhaps order one parent/guardian to receive the subsidy. The Division does not have the authority to remove one parent/guardian from the agreement without supporting documentation and a court order. In order to do this, one of the following must occur:

• There must be an order from the court, assigning one of the parents/guardians physical custody of the child covered under subsidy. This order could be a full child order of protection or a custody order; or
  • If the order is a full child order of protection, the worker may take the non-caretaking parent’s/guardian’s name off the Vendor Licensure/Approval and Renewal screen in FACES once a copy of that order is received so that the subsidy payment will be made to the parent/guardian caring for the child. A full child order of protection is valid for up to 180 days. Therefore, the caretaking parent/guardian should provide the agency with a custody order within six months, or an extended child order of protection in order to continue the subsidy in this way.
  • The parent/guardian caring for the child will be expected to obtain a custody order, in order to take the non-caretaking parent/guardian off the subsidy agreement.
  • Once the custody order is received, revise the existing version of the agreement to remove the parent or guardian. A new agreement number will be assigned by DFAS Purchasing Unit. Staff should update FACES and send supporting documentation to the Adoption Subsidy Unit in Central Office.
• The adoptive parent or guardian who is not caring for the child agrees to be taken off the subsidy agreement; or
  • The parent or guardian caring for the child must provide a written request to the Division, requesting that the non-caretaking parent or guardian be removed from the subsidy agreement.
  • The non-caretaking parent or guardian must provide a notarized statement regarding their agreement to this action, to be placed in the file.
• If the parent/guardian receiving the subsidy payment is not financially supporting the subsidized child with the subsidy, specific documentation of this must be utilized to close the subsidy due to the lack of financial support and a new subsidy Agreement may be opened under the parent/guardian who is caring for the child. If this action is taken, the following steps must occur:
  • Write the adoptive parent(s) or guardian(s) a letter stating that the subsidy will be closed within 30 days due to the lack of financial support of the child. Document the evidence on which this decision has been based.
  • Wait 30 days for a response. The parent/guardian who has been receiving the subsidy may decide to begin forwarding financial support to the care-taking parent/guardian. If so, document this information in the case dictation. If after 30 days, the care-taking parent/guardian reports continued lack of financial support from the parent/guardian who has been receiving the subsidy payment, proceed to step 3.c.
  • Close the old Vendor using the Vendor Licensure/Approval and Renewal screen, and the old subsidy agreement.
  • Open a new Vendor Application in the name of the parent/guardian caring for the child.
  • Complete new subsidy paperwork, including a new Adoption Subsidy Agreement, CD AD, or Subsidized Guardianship Agreement, CD SG, with the parent/guardian caring for the child.
  • Update the Alternative Care Client screen, or the Adoption Assistance Client Information screen in FACES to reflect the new vendor number.

If both parent(s)/guardian(s) continue to disagree on the subsidy, it is not the responsibility of the Division staff to make any decisions or take any actions without a court order. Division staff are to encourage the parent(s) or guardian(s) to work with their attorneys with regard to this matter.

In the event that a divorce occurs with a guardianship couple, the guardianship subsidy may only remain in effect with the qualified relative retaining physical custody.

Related Practice Alerts and Memos:

7-1-19 – CD19-52 – FY20 Rate Increases

12-4-19 – PA19-AD-06 – Transitional Living Placements and Subsidy Agreements

1-10-20 – PA20-AD-01 – Legal Fees for AD and LG Subsidies

10-29-2020 – PA20-AD-06 – Child Summary

01-13-21 –CD-21-01 -Contractors Negotiation/Completion Of The Initial Adoption Or Legal Guardianship Subsidy Agreement