It's unfortunate that many U.S. marriages ultimately end in divorce. It's one thing to end your union with your spouse in your 30s or 40s, but it's another thing to do so right on the cusp of retirement -- or in retirement itself.
Gray divorce, as it's called, is not uncommon. But you may be wondering how getting divorced later in life might impact your Social Security benefits. Here's what you need to know.
Image source: Getty Images.
You can still claim spousal benefits as a divorcee
Even if you're divorced, Social Security spousal benefits may be on the table. If you're at least 62 years old and were married to your ex-spouse for at least 10 years, you may be eligible for spousal benefits based on their earnings record.
To qualify for spousal benefits on an ex-spouse's record, you can't be remarried. Also, you and your former spouse must be divorced for two years or longer before you can file a Social Security spousal benefits claim.
You'll only be entitled to spousal benefits from Social Security if 50% of your ex-spouse's benefit equals more than 100% of your own. To put it another way, Social Security will only pay you a single monthly retirement benefit. If you're entitled to $1,800 a month based on your personal wage history and your ex-spouse is entitled to $2,400 a month, you'll keep your own benefit because it's higher than 50% of $2,400, or $1,200.
However, let's say you're entitled to $1,500 a month from Social Security and your spouse is entitled to $3,200. In that case, you'd be entitled to $1,600 in spousal benefits -- assuming that you wait until your full retirement age (FRA) to file. Filing before FRA will reduce the amount of Social Security you receive, whether it's your own benefit or a spousal benefit.
Along these lines, there's no sense in delaying a spousal benefit claim beyond FRA. Social Security will boost your benefit for a delayed filing if you're claiming based on your own wage history. But you can't grow a spousal benefit whether you're married or divorced, so once your FRA arrives, you might as well sign up.
Can your ex-spouse lose money if you claim spousal benefits?
The amount of money Social Security pays you in spousal benefits won't impact your ex-spouse at all. It's not like Social Security will take half of your ex-spouse's monthly benefit away from them to give it to you. They can collect their monthly benefit in full while you collect up to 50% of that sum separately.
Your ex-spouse may not even know that you're collecting spousal benefits from Social Security based on their earnings record. They also should not be able to stop you from filing a claim. In the unfortunate event that your divorce doesn't end amicably, know that ultimately, you should still have a right to spousal benefits from Social Security, as long as you meet the aforementioned criteria.
