During the divorce process, spouses often focus on dividing assets like bank accounts, retirement accounts and real estate. But, if you and your ex-spouse were married for longer than ten years, you may also be entitled to take advantage of other financial benefits. Specifically, if you and your former spouse were married over ten years and paid into the Social Security Trust Fund, you may be able to receive Social Security Retirement benefits on your ex-spouses account when you reach age 62. Despite being entitled to this benefit, many ex-spouses often overlook it or fail to take advantage of it post-divorce. This is so because many simply do not know enough about the Social Security program. With this in mind, below we have listed five things all divorced retirees should know about the Social Security program.
If you are a divorced retiree, hopefully the information provided below will help you determine if Social Security retirement benefits on your former spouse’s account are available to you. If you have questions about Social Security Retirement benefits for divorced individuals, or if you would like further information, contact the Social Security Administration online or by phone at (800) 772-1213.
- Social Security rules entitle a divorced spouse to a formers spouse’s earnings if the two were married for at least 10 years and the spouse claiming benefits is unmarried. Even if one former spouse is remarried and is still ineligible for Social Security, the other spouse can claim benefits just as long as he or she is 62 and has been divorced from the other spouse for at least two years.
- Unlike the division of a 401(k) or other retirement accounts and benefits, a spouse’s entitlement to Social Security benefits on the account of the other spouse is not negotiable. Assuming the other requirements are met, a divorced retiree will be automatically entitled to these benefits. In fact, one ex-spouse can apply for and receive benefits on the other ex-spouse’s account without that former spouse ever finding out.
- Those entitled to Social Security benefits on a former spouse’s account are entitled to half of the account holder’s benefit per month. For example, if you are seeking to claim retirement benefits on your former spouse’s account, and he or she is eligible for a monthly benefit of $2,000, you will receive $1,000 per month.
- Even if one ex-spouse claims benefits on the other ex-spouse’s account, this claim has no impact on the account holder’s benefits. Using the example above, even if you receive $1,000 per month, your ex-spouse will still receive his or her full benefits – $2,000 per month.
- You may not collect your own Social Security benefits and collect on your ex-spouse’s account at the same time. However, you may be able to take advantage of your spousal befits immediately upon reaching retirement age, while deferring receipt of your own benefits. This option may be best for some, because each year between ages 66 and 70, Social Security benefits increase by around 8% each year they are deferred.