This question comes up from time to time. In New Hampshire, if you are divorcing and one spouse is already in the nursing home, at least do not come in with a settlement agreement. Litigate the divorce.
Generally speaking, even with a second marriage, the children of the ill spouse are going to lose out anyway as it is too late to protect their parent’s money if they did not do something at least 5 years before applying for Medicaid, with limited exceptions. the parent’s assets must be spent on the parents’ nursing home costs.
Conclusion: Consult with an elder law attorney BEFORE you call the divorce attorney, because chances are good the divorce attorney does not know the Medicaid rules.