Social Security Benefits and Divorce
Navigating Social Security benefits can be complex during a divorce, but understanding the rules can significantly influence your future financial stability. If you were married for 10 years or more and have not remarried prior to the age of 60, you are entitled to receive 50% of your ex-spouse's Social Security benefits if that amount is greater than your own. Importantly, this does not reduce your ex-spouse's benefits, and it's irrelevant whether your ex-spouse has remarried. For instance, if your ex-spouse's benefit is $2,000 per month and your own benefit would only be $800, you would be eligible to receive $1,000 (half of your ex-spouse's benefit) instead.
If you're aged 62 or older, and your ex-spouse has not yet retired or started receiving benefits, you can still receive benefits based on your ex-spouse's record. However, this rule only applies if your divorce was finalized more than two years ago. Let's say you're 63, your ex-spouse is 61 and still working, but you divorced three years ago. In this case, you can begin collecting benefits based on your ex-spouse's record, despite them not having started their benefits yet.
If you've remarried, your benefits will be calculated differently. Instead of being based on your ex-spouse's Social Security contributions, your benefits will be based on either your own contributions or your new spouse's benefits. However, if you divorce again after being married for 10 years, you gain the option to choose whose benefits to claim, your first ex-spouse's or your second ex-spouse's, depending on which is higher. Suppose you've remarried and your second spouse's Social Security benefit is less than what you would receive from your first spouse's benefit. In that case, if you divorce your second spouse after 10 years, you could revert to collecting the higher amount from your first ex-spouse's benefits.
Understanding how Social Security benefits operate in relation to divorce is crucial in securing your financial future. Consult with a financial advisor or divorce attorney to ensure you're maximizing your benefits.