She was interviewed in December 2012 and said she was aware of her obligations, however had not advised the ministry of her marriage-like relationship because she did not think it would last and was always telling him to find his own place.
Smith received an overpayment of $9303 in DPB payments and accommodation supplements, Mr Govind said.
Reparation was not sought by the ministry but Mr Govind said Smith had made arrangements to repay the money. He said a sentence of community work would "give back to the community she has taken from".
Defence lawyer James Elliot said Smith had plead guilty at the earliest opportunity and was "mortified" to be before the court.
Mr Elliot said Smith had two young children, but would be able to do community work.
Judge Bill Hastings said the fraud was serious and that the community was the victim.
"Every taxpayer contributes to this [the DPB].
"Your culpability cannot be said to be low."
Judge Hastings sentenced Smith to 200 hours' community work.