Can cash assets be “protected” from Medicaid by using it to pay down mortgage?

You would get the house, have a car and half the assets if you didn't divorce him. Its called being the Community Spouse. You also get a portion of the monthly income to live on. I think need a second opinion. You do need an elder lawyer to split the assets.

You are right. I did pay for his opinion. I’m very risk averse and feel comfortable with cash in hand. The down side would be if the real estate market went bust. I believe his unstated advice was, pour the assets into the house, divorce him, sell the house and recoup the money. Maybe he couldn’t/wouldnt come right out with that part of it. Would it work? Probably. Would I feel good about doing it? Not really. But nothing about this whole situation feels good. 🙁

You went to an attorney and got advice. It sounds valid to me, but I am not an attorney and you aren't sitting in my office getting a second opinion to the tune of 500.00.

This WILL protect half the assets when he goes into care/is in care, whereas they will not otherwise be protected. I have myself seen this done with an acquaintance whose wife was in a deep coma many years until she died, after a fall. He had two small children to raise. He remained true to her until her death, but could not pay for care and be impoverished when he needed care hired for his children.

These are tough decisions. You have gone to an attorney for options. They were given to you. Now you have to make decisions on whether or not to follow the attorney's advice wholly or partially or if at all. You certainly could get advise of a second attorney to set this solid-in--stone if you are uncertain whether or not this is wise or legal.