Broker Check

Social Security: Spousal Benefits After Divorce

| October 31, 2023

       Going through a divorce is undoubtedly one of life's most challenging experiences. Amid the emotional turmoil, it is crucial to address practical matters like your financial future. Social Security benefits can play a significant role in post-divorce financial planning, particularly spousal benefits. In these posts, I try to help explain real life situations that people go through. Many of these situations will be foreign for most and many lack general knowledge on these topics. Here we will explore the options available to recent divorcees regarding Social Security spousal benefits.

Understanding Social Security Spousal Benefits

       Spousal benefits are a valuable aspect of Social Security, allowing spouses, including divorced spouses, to claim benefits based on their current or former spouse's earnings record. To be eligible for spousal benefits after divorce, you must meet specific criteria:

Marriage Duration: You must have been married to your former spouse for at least ten years to qualify for divorced spousal benefits.

Eligibility of Ex-Spouse: Your ex-spouse must be eligible to receive Social Security benefits. They need to be at least 62 years old or already receiving their benefits.

Current Marital Status: You must be currently unmarried. If you remarry before the age of 60, you will not be eligible for divorced spousal benefits based on your ex-spouse's record.

Options for Recent Divorcees

       Your Own Benefit vs. Spousal Benefit: If you have a work history and are eligible for your Social Security benefits, you have the choice between claiming your benefit or a spousal benefit. You cannot receive both simultaneously. Depending on your earnings history, it is essential to evaluate which option provides a higher monthly payment.

Ex-Spouse's Benefit: If your ex-spouse's Social Security benefit is higher than what you are entitled to based on your own earnings record, you can claim a spousal benefit based on their earnings. This can be up to 50% of your ex-spouse's full retirement age benefit amount. If your ex-spouse has not applied for retirement benefits, but can qualify for them, you can receive benefits on their record if you have been divorced for at least two continuous years.

Waiting to Claim: You can start receiving spousal benefits as early as age 62 but claiming before your full retirement age (typically 66-67, depending on your birth year) can result in a reduced benefit. Waiting until your full retirement age ensures that you receive the maximum spousal benefit.

Remarriage After 60: If you remarry after turning 60, it will not affect your eligibility for divorced spousal benefits based on your ex-spouse's record.

Survivor Benefits: In the unfortunate event of your ex-spouse's passing, you may be eligible for survivor benefits, which could be as much as 100% of their benefit amount if you are of full retirement age or older.

Important Considerations

Timing. Timing is Crucial: Deciding when to claim benefits is a critical decision. Consider factors such as your financial needs, health, and life expectancy. Delaying benefits can result in higher monthly payments. Consult a Professional: Social Security rules can be complex, and the best strategy for claiming benefits can vary based on your individual circumstances. Consulting a financial advisor or Social Security expert can help you make informed decisions. Keep Records: Maintain a record of important documents, such as your marriage certificate, divorce decree, and Social Security statements. These documents will be essential when applying for spousal benefits.

       In summary, recent divorcees have options when it comes to Social Security spousal benefits. Understanding the eligibility criteria and evaluating your financial situation are crucial steps in making informed decisions. By navigating the complexities of Social Security, you can secure a more stable financial future during this challenging time in your life.