Social Security can go a long way in retirement, so it's important to ensure you're squeezing every penny out of your monthly checks. Most older adults qualify for retirement benefits, so long as you've worked and paid taxes for at least 10 years. But retirement benefits aren't the only type of Social Security you could be entitled to receive.
Your marital status also affects your benefit amount. While many people are aware that spouses can collect Social Security, many don't know that you could also receive extra benefits if you're divorced. Here's how to tell whether you qualify.
Image source: Getty Images.
What are divorce benefits?
A whopping 38% of adults age 50 and older are unaware of divorce benefits, according to a 2023 survey from the Nationwide Retirement Institute. And an additional 14% incorrectly believe divorced spouses aren't entitled to extra Social Security.
As of July 2023, the average spousal or divorce benefit amount is nearly $900 per month, according to data from the Social Security Administration. It pays, then, to make sure you're collecting this type of benefit if you're eligible.
There are a few requirements you'll need to meet to qualify for divorce benefits:
- You can't currently be married.
- Your marriage must have lasted for at least 10 years.
- You must be at least 62 years old.
- If you've been divorced for fewer than two years, you can't begin claiming until your ex-spouse has filed for benefits.
Claiming Social Security based on an ex-spouse's work record will not affect their benefit amount. If your ex has remarried, it also won't affect any spousal benefits their current partner may be entitled to receive.
How much can you collect?
The maximum you can receive in divorce benefits is 50% of the amount your ex-spouse is entitled to at their full retirement age (FRA). If you're already entitled to Social Security based on your own work record, you can still receive divorce benefits -- but only if your payment is less than what you'd collect based on your ex-spouse's record.
For example, say you're entitled to $900 per month based on your own earnings. Let's also say your ex-spouse will receive $2,000 per month at their FRA, so your maximum divorce benefit is $1,000 per month.
You'll only receive the higher of the two amounts, so your total benefit payment in this case would be $1,000 per month. If you were receiving, say, $1,200 per month based on your own earnings, you wouldn't qualify for divorce benefits at all in this scenario.
Finally, to collect the highest possible divorce benefit payments, you'll need to wait until your own FRA to file for Social Security. If you begin claiming early (as soon as age 62), you'll receive reduced payments each month.
Maximizing your Social Security
Social Security can be a significant source of income in retirement. If you're divorced, you could be owed hundreds of dollars more per month.
Even if you've never worked and aren't entitled to your own benefits at all, you can still receive divorce benefits if you meet the eligibility requirements. By understanding who qualifies and how much you could receive, you can maximize your Social Security and enjoy a more financially comfortable retirement.
