5 Things To Know About Divorce and Social Security
If you're nearing 62, you may be wondering if you're eligible to receive Social Security benefits from an ex-spouse. In this blog post, we'll explore what determines your eligibility, how much you could receive, and when it makes sense to collect these benefits.
Plus, we’ll go through some real-life examples to help you understand how it works.
Eligibility for Divorce Spousal Social Security Benefits
If you're divorced and approaching age 62, you could be eligible to claim divorce spousal benefits based on your ex-spouse's work record.
According to a study from Mass Mutual, 4 in 10 Americans nearing retirement don’t know that divorced individuals can claim spousal benefits. This is particularly relevant for many women, who are often unaware of this option or hesitant to apply out of fear of angering their ex-spouse.
The Good News
First, let’s clear up some common misconceptions. If you claim benefits based on your ex-spouse’s work history, it will not affect their Social Security in any way.
The benefit rules have been gender-neutral since 1983, and these rules apply to same-sex couples as well. In practice, more women benefit from this due to factors like lower lifetime earnings and higher likelihood of staying home to care for children.
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So, What Makes You Eligible?
To qualify for a divorce spousal benefit, you must meet the following criteria:
Your marriage lasted at least 10 years.
You are currently unmarried. If you remarry, you are eligible for spousal benefits based on your new spouse’s earnings.
Your ex-spouse is 62 or older and eligible for Social Security benefits.
Your divorce occurred at least 2 years ago. If you're applying for benefits, your ex doesn’t have to have filed for benefits yet; they just need to be eligible.
Your own Social Security benefit is less than the spousal benefit. In this case, you can claim up to 50% of your ex-spouse’s benefit, if it's higher than your own.
What Happens If You File?
When you apply for Social Security benefits, you can either file for your own benefit or for a spousal benefit.
If you are divorced, you can claim the higher of the two. However, there’s a catch: Deemed Filing means that once you file for Social Security, you can’t restrict your application to just the spousal benefit unless you were born before January 2, 1954.
For those born before 1954, you can file a restricted application, meaning you can collect up to 50% of your ex-spouse's full benefit while letting your own benefits grow until age 70.
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An Exception If Born Before 1954
If you were born before January 2, 1954, you're in luck! You can file a restricted application and start collecting 50% of your ex-spouse’s full retirement benefit while allowing your own benefit to grow until you reach age 70.
This option is especially useful for those turning 70 in 2025 or beyond, as your benefits increase significantly with delayed filing.
What If My Ex-Spouse is Deceased?
If your ex-spouse has passed away, you might be eligible for a surviving ex-spouse benefit. The eligibility rules are mostly the same as for divorce spousal benefits, but there are a few changes:
You can begin collecting survivor benefits as early as age 60, rather than 62.
You can still let your own benefits grow by claiming your ex-spouse’s survivor benefit and then switching to your own at age 70.
This strategy allows you to collect benefits from your ex-spouse while letting your own benefits grow. Remember, if you’re not yet 70, delaying your own benefit increases it by about 8% each year until you hit age 70.
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Applying for Divorce Spousal Social Security Benefits
To apply, you can either:
Call the Social Security office, or
Visit a local office (I recommend making an appointment to avoid long wait times).
Make sure you have the following documents on hand:
Birth certificate
Marriage certificate
Divorce decree
Proof of U.S. citizenship or residency
Employment information (W-2 forms or self-employed tax returns)
Examples of Divorce Spousal Benefits in Action
Let’s break down a few scenarios to better illustrate how the benefits work:
Jill and Jack
Jill's full retirement benefit: $800/month
Jack’s full retirement benefit: $3,200/month
If Jill claims her divorce spousal benefit at 62, she would receive 32.5% of Jack's $3,200, which is $1,040/month—higher than her own benefit. If Jill waits until her full retirement age (67), she could collect $1,600/month (50% of Jack’s benefit).
Sarah and Steve
Sarah’s full retirement benefit: $1,800/month
Steve’s full retirement benefit: $3,000/month
Since Sarah’s benefit is already higher than half of Steve’s, she cannot collect a spousal benefit. However, if Steve passes away before Sarah begins collecting, Sarah could choose between collecting survivor benefits or switching to her own benefit at age 70.
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Closing Thoughts
If you’re thinking about applying for Social Security and are unsure of your options, it’s always a good idea to contact Social Security directly or consult with a professional to determine the best strategy for your situation.
Remember, knowledge is power when it comes to planning for your retirement. So, take the time to understand your options and ensure you're making the best decisions for your future!
If you have a question or topic that you’d like to have considered for a future episode/blog post, you can request it by going to www.retirewithryan.com and clicking on ask a question.
As always, have a great day, a better week, and I look forward to talking with you on the next blog post, podcast, YouTube video, or wherever we have the pleasure of connecting!
Written by Ryan Morrissey
Founder & CEO of Morrissey Wealth Management
Host of the Retire with Ryan Podcast