If you’re among the increasing number of people divorcing in the years before retirement, you’ll likely have different financial priorities than those divorcing as young adults. For example, you’ll want to consider how much you’ll receive when you qualify for Social Security retirement benefits. You can get an estimate of your benefits and ensure that your information is accurate if you establish an account with the Social Security Administration (SSA) online.
There are many misconceptions around these benefits and Social Security spousal benefits, especially when it comes to divorce. For example, if a person takes spousal benefits, it has no effect on the amount of retirement benefits that spouse receives. They don’t “come out of” your spouse’s benefits.
Why you probably won’t be taking Social Security spousal benefits
Spousal benefits were established back when many women didn’t work outside the home and therefore qualified for minimal, if any, Social Security retirement benefits of their own. These days, most people are better off taking the benefits they’ve earned based on their work history than spousal benefits.
That’s because spousal benefits can be no more than 50% of the benefits their spouse would get at their full retirement age (FRA), which is around 66 years old, based on their work record. A person can’t take their own retirement benefits and spousal benefits. Therefore, unless your spouse has outearned you by a significant amount over the years, your spousal benefits would be less than your own retirement benefits. If you’re not sure, compare the numbers.
Can you get spousal benefits if you’re divorced from your spouse?
You can get spousal benefits based on your ex-spouse’s work record as long as you were married for at least ten years and haven’t remarried. Typically, the minimum age you can start taking them is 62 as long as your ex is already getting them. However, as with retirement benefits, the longer you hold off (up until FRA), the more you’ll be able to get.
As noted, taking spousal benefits has no effect on your ex-spouse’s benefits. A person can’t “lose” their own retirement benefits in divorce or be required to specifically hand over a portion of them. These benefits can, however, be considered as part of their income when determining whether they have to pay spousal support.
If Social Security is in the relatively near future, it’s important to consider it as you divorce – and to have the facts. It can help to have your own financial advisor in addition to having experienced legal guidance.