Social Security Benefits After a Divorce
Are you divorced? Were you married for at least 10 years? If so, you might qualify for Social Security benefits through your ex-spouse’s earnings. Divorced spouses are entitled to the greater benefit of their own or their ex-spousal benefit.
The maximum ex-spousal benefit is up to 50% of the higher earner’s benefit and capped at the ex-spouse’s full retirement age (FRA) amount, also known as the Primary Insurance Amount (PIA). While most will get a higher SS benefit based on their own earnings record, some will qualify for a higher benefit using their ex-spousal benefit. With a significant increase in “gray divorce” over the past 30+ years, divorced individuals belong to a generation where many women left or remained out of the workforce to care for children or elderly family members. If you are the lower-earning spouse due to a limited work history or a significant income gap compared to your ex-spouse, collecting benefits based on your ex’s record could raise the amount of your monthly Social Security benefit.
Am I Eligible?
To be eligible for divorced spousal benefits, you must meet the following criteria:
· Your ex-spouse must qualify for Social Security retirement benefits, he/she must be at least 62 years old with a minimum of 40 work credits (the equivalent of 10 years of full-time work). However, your ex-spouse does not need to file for their benefits first.
· Your individual retirement benefit must not be higher than the ex-spouse’s benefit.
· You must be unmarried.
· You must be at least 62 years old.
· You and your ex-spouse must have been married for a minimum of 10 consecutive years and divorced for at least two. You can file for divorced spousal benefits within the two-year period if your ex-spouse has already begun receiving their benefit.
To receive your maximum divorced spousal benefit (50% of your ex-spouse’s benefit at their FRA), you must wait until your own full retirement age to file. Although you can start drawing
benefits at age 62, this is considered early filing and will reduce your spousal benefits, similar to how it would reduce your individual benefits—only more. If you file for spousal benefits at 62, you’ll only receive 32.5% of your ex-spouse’s full retirement-age benefit instead of 50%. However, delaying spousal benefits beyond your full retirement age does not increase the spousal benefit.
How Can I Find Out My Ex-Spouse’s Benefit at Full Retirement Age?
A Social Security representative can provide estimates of the benefit you may receive based on your ex-spouse’s earnings record. You will need two key documents: your marriage certificate and your divorce decree. The Social Security Administration (SSA) will use them both to identify your ex-spouse and determine the spousal-benefit amount based on their earnings record. The divorce decree will also verify if a couple were married for at least 10 consecutive years and how long they have been divorced to ensure eligibility. Call your local Social Security office or the national customer service line (800-772-1213) to make an appointment.
If you cannot locate your divorce decree, contact the clerk of the county or city where you were divorced. The clerk will explain how to order a copy of the decree, the cost, and any information that is needed.
How Do I File for Divorced Spousal Benefits?
The application process for divorced spousal benefits is essentially the same as filing for an individual Social Security benefit. There are three options: · Complete an online application form at https://www.ssa.gov/apply.
· Call the SSA at 800.772.1213 between 8:00 AM – 7:00 PM Monday through Friday.
· Make an appointment at your local Social Security office.
The SSA will calculate both your individual and spousal benefits, and pay you whichever amount is higher.
Will My Ex-Spouse Know if I File for Divorced Spousal Benefits?
This is confidential information, and your ex-spouse will NOT be notified. Claiming based on your ex’s record has absolutely no effect on their benefits. If they remarry, your spousal benefit will not be affected, nor will their current spouse’s benefits be affected.
Summary
If you are divorced and believe you might qualify for divorced spousal benefits:
1. Review the requirements list.
2. Gather the necessary documents.
3. Contact the SSA to confirm your eligibility and calculate your benefit.
If you have questions about this topic, reach out to a financial professional. If you are not currently working with FPS, we would be happy to talk with you. Questions? We are here to help.
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Best regards,
Janet Rhodes Friedman, CFP®, CDFA®, MBA
Janet@PlanWithFPS.com
617-630-4978
Financial Planning Solutions, LLC (FPS) is a Registered Investment Advisor. Financial Planning Solutions, LLC (FPS) provides this blog for informational and educational purposes only. Nothing in this blog should be considered investment, tax, or legal advice. FPS only renders personalized advice to each client. Information herein includes opinions and source information that is believed to be reliable. However, such information may not be independently verified by FPS. Please see important disclosures link at the bottom of this page.