Title: Divorce in Retirement and its Impact on Social Security Benefits
Retiring on Social Security can be a significant financial boost, especially for married individuals who may be entitled to spousal benefits. If you're currently getting these benefits and later divorce, you might lose spousal benefits, but you might become eligible for divorce benefits instead.
Divorce benefits mimic spousal benefits but are exclusive to divorced individuals who've been married for at least a decade. Your marriage must have ended, and now you should be over 62 to apply for these benefits. If your divorce is less than two years old, you'll have to wait until your ex-spouse starts collecting retirement benefits to apply for yours. Notably, collecting divorce benefits won't affect your ex-partner's checks in any way, and they can still receive spousal benefits if they remarry someone else.
The maximum amount you can earn in both spousal and divorce benefits is 50% of what your ex-spouse can receive at their Full Retirement Age (FRA). To enjoy this maximum payout, you should delay claiming benefits until your own FRA. If you file early, your benefit payout will be reduced.
It's essential to note that even if you've never worked or are ineligible for retirement benefits, you can still collect divorce benefits. However, this might affect other forms of Social Security you might be entitled to. If you qualify for both retirement and divorce benefits, the Social Security Administration (SSA) will pay out the higher amount first and supplement it with the lower one so you receive the maximum benefit.
If your ex-spouse passes away during retirement, you might be eligible for survivors benefits. These benefits can cover you, as well as your financially dependent children and parents, in certain circumstances. By waiting until your Full Retirement Age to apply, you can receive your ex-spouse's entire benefit amount as survivors benefits. If you were married for over a decade, you might also sometimes qualify for these benefits, even if you've remarried.
Divorced spouses who've been wed for over a decade can find Social Security benefits incredibly helpful. Key points to remember include:
- Eligibility:
- The marriage must endure for 10 consecutive years before finalizing the divorce.
- The seeking spouse cannot be remarried (except if remarried after 60 or 50 with a disability).
- Benefit Types:
- Spousal Benefits: These apply if the ex-spouse is receiving retirement or disability benefits. The divorced spouse can receive up to 50% of the ex-spouse’s full retirement amount if they begin receiving benefits at FRA.
- Survivors Benefits: These benefits are provided if the ex-spouse passes away. The divorced spouse can receive survivors benefits if they're over 60 (or 50 with a disability) and unmarried or remarried after age 60.
- Application Process:
- If the divorce was less than two years ago, the ex-spouse must file for retirement benefits first for the divorced spouse to collect spousal benefits.
- The divorced spouse does not need to inform their ex-spouse about receiving a benefit, and the ex-spouse’s retirement benefit will not be reduced by the divorced spouse’s benefit.
- Remarriage Impact:
- If the divorced spouse remarries before age 60, they generally lose the spousal benefit from their first marriage. However, if they remarry after age 60 (or 50 with a disability), they can retain the survivors benefit from their first marriage.
- Earnings Limitations:
- If the divorced spouse is under FRA and continues working, there are earnings limits that apply. Exceeding these limits may result in reduced or withheld benefits.
- Benefit Calculation:
- The SSA will determine the greater of the retirement benefit or the spousal/survivors benefit and pay out that amount to the divorced spouse.
After reaching the age of 62, you can apply for divorce benefits even if you haven't worked or are ineligible for retirement benefits, but this might affect other Social Security entitlements. If your ex-spouse passes away during retirement, you might become eligible for survivors benefits, which can cover you and your financially dependent children and parents in certain circumstances.
Assuming you qualify for both retirement and divorce benefits, the Social Security Administration will pay out the higher amount first and supplement it with the lower one, ensuring you receive the maximum benefit.
