When a marriage ends in divorce, there are many financial considerations to sort out. One issue that often comes up is Social Security benefits. Both spouses may have earned Social Security benefits through their own work records, but they may also be eligible for benefits based on their ex-spouse’s record. This can provide much-needed retirement income, especially for lower-earning spouses. However, there are specific rules about when and how to claim these benefits that depend on your situation.
Basic Eligibility for Ex-Spouse Benefits
To be eligible for Social Security benefits based on an ex-spouse’s work record, you must meet the following requirements:
- Your marriage lasted at least 10 years
- You are unmarried (or remarried only after age 60)
- You are at least 62 years old
- Your ex-spouse is entitled to Social Security retirement or disability benefits
As long as you meet these criteria, you can apply for and receive benefits based on your former spouse’s earnings history. You do not need your ex-spouse’s consent or cooperation to do so. Even if they have remarried, it will not affect your eligibility.
How Much Are Ex-Spouse Benefits?
If you are eligible for ex-spouse benefits, the amount you receive will be based on your ex-spouse’s Primary Insurance Amount (PIA). The PIA is determined by an individual’s lifelong earnings. Your benefit as an ex-spouse will be:
- 50% of your ex-spouse’s PIA if you start receiving benefits at your full retirement age (currently 66 or 67)
- Reduced if you start benefits early, as early as age 62
- Increased if you start benefits later, up to the maximum age of 70
Importantly, collecting on your ex’s record does not decrease their benefit amount or that of any current spouse. It does not matter if your ex has remarried or if their new spouse is also drawing benefits. Each spouse is entitled to their own separate benefit.
How Divorce May Impact Benefit Amounts
While a short-term marriage does not prevent you from claiming on an ex’s record, the length of your marriage can impact the amount you receive.
If you were married:
- For at least 10 years but less than 20 years, you can claim the full spousal rate (50% of PIA) when you reach full retirement age.
- For less than 10 years, your benefit is reduced. Specifically, you can claim a percentage of the full rate based on how long you were married. For example, if you were married 8 years, you would be eligible for 8/10 (80%) of the full spousal rate.
Remarriage, however, can fully eliminate your eligibility to claim benefits based on your first spouse’s work history. The only exception is if the subsequent marriage also ends in divorce or death after at least 10 years together.
How and When to Apply for Ex-Spouse Benefits
If you decide you want to move forward with filing for benefits on your ex-spouse’s record, here are some key steps:
1. Determine the Maximum Benefit
As outlined above, the benefit amount you will receive depends largely on when you start claiming. You can calculate estimates for early (age 62), full (age 66/67), and delayed (up to age 70) retirement online or by speaking with a Social Security representative.
Review the amounts to determine how long you can afford to wait before filing. For most, the highest amount is achieved by delaying until age 70, but personal circumstances like health and income needs may alter your ideal timing.
2. Review Your Overall Retirement Income
Social Security is designed to replace only about 40% of preretirement income. Most seniors require around 70-80% of preretirement income to live comfortably in retirement.
Look at your other sources of retirement income before deciding when to claim benefits. Other income sources may include pensions, retirement accounts like 401(k)s and IRAs, and savings. Make sure your filing age maximizes not just your Social Security income but your overall income sustainability.
3. Understand Earnings Limits
If you are below your full retirement age and earn income from working, your Social Security benefits may be temporarily reduced. This earnings test limits how much you can earn before they take back some benefits.
Be strategic about timing benefit collection based on your expected working income in early retirement. Delaying benefits maximizes your payment when the earnings test no longer applies at full retirement age.
| Age | Annual Earnings Limit | Benefit Reduction |
|---|---|---|
| Under full retirement age | $18,960 in 2022 | $1 withheld for every $2 above limit |
| Year you reach full retirement age | $1 withheld for every $3 above limit |
4. Contact Social Security
You can apply for benefits on your ex-spouse’s record by:
- Calling Social Security at 1-800-772-1213
- Visiting your local Social Security office
- Filing for benefits online via the SSA website
Regardless of how you apply, be sure to have your Social Security number, latest tax return, ex-spouse’s Social Security number, certified copy of your divorce decree, and banking information.
How Government Pensions May Impact Eligibility
If you worked for an employer that did not withhold Social Security taxes, such as certain government agencies, you may be subject to two provisions that can limit Social Security spousal benefits:
Government Pension Offset (GPO)
The GPO applies if you receive a pension from a federal, state, or local government based on work where you did not pay Social Security taxes. Under this rule, your Social Security spousal or survivor benefits may be reduced by two-thirds of your government pension.
For example, if you receive a monthly civil service pension of $600 based on non-covered government employment, two-thirds of that amount, or $400, must be deducted from your Social Security benefits.
Windfall Elimination Provision (WEP)
The WEP can reduce your own Social Security retirement or disability benefit if you also receive a pension from non-covered government employment. Your Social Security benefit is calculated using a modified formula when WEP applies.
Unlike GPO, WEP does not affect spousal/survivor benefits. But it can greatly reduce the Social Security benefit you earn on your own work history. The reduction cannot be more than half of your pension from non-covered work.
major considerations regarding social security and divorce:
Here is a summary of some key points to consider with regard to Social Security and divorce:
You Must Be Divorced for 2 Years Before Benefits Can Begin
Unlike survivor benefits, you cannot collect spousal benefits until you have been divorced for at least two years. This holds even if your ex has already started collecting their own benefits.
Remarriage Can Terminate Eligibility
As noted above, getting remarried can prevent you from collecting benefits on your ex’s record, unless your new marriage also ends after 10 or more years. Cohabitating without formal marriage typically does not impact eligibility.
Your Benefit Has No Impact on Your Ex’s Benefit
The amount you receive as an ex-spouse does not decrease the amount your ex gets. Their benefit amount will not change regardless if you claim it or if they remarry.
You Must Apply Proactively
Ex-spousal benefits do not start automatically – you need to submit a formal application. Be aware of filing deadlines and earnings limits to maximize your eligible benefit.
Survivor Benefits Are Available If Your Ex Passes
If your ex-spouse dies, you may qualify for survivor benefits as early as age 60 (or 50 if disabled). The duration of your marriage may impact the reduction in survivor benefits.
Your Benefit Can Switch Automatically
If you qualify for both your own benefit and a spousal benefit, Social Security will pay you the higher amount. If your own benefit later exceeds your spousal benefit, they will automatically switch you.
Divorced spouses have the same options as married spouses
A divorce decree does not preclude you from applying for spousal benefits based on your ex’s earnings record, provided you meet the eligibility criteria. You have the same options to file early, at full retirement age, or delay up to age 70.
Coordinate filing strategically with your ex
Compare benefit estimates and consider having the higher earner delay filing while the lower earner claims early benefits. This can maximize total household income. But it requires agreement between both parties.
Notify Social Security of any name changes
Be sure to report any name changes to the SSA so they can properly identify and calculate your earnings history and benefits. Also inform them of any changes in marital status.
Check benefit estimates annually
Social Security benefit estimates can change each year depending on your latest earnings. Check your projected benefits online each year as you approach retirement to make the most informed filing decision.
Seek professional advice if needed
Social Security rules can be complex. Consult a financial planner or Social Security expert if you need help understanding interactions with government pensions, the best claiming strategies for your situation, or optimizing household Social Security income.
Can I receive benefits if I remarry?
Remarriage can complicate Social Security benefits for divorced people but does not necessarily disqualify you completely from receiving benefits based on your ex-spouse’s work record. Here are some key considerations:
- If you remarry before age 60, you cannot collect benefits on your former spouse’s record while you remain married.
- If you remarry after age 60 (or 50 if disabled), you may still be able to collect benefits. Your marital status at the time you apply is what matters.
- If your new marriage also ends in divorce after at least 10 years, you could potentially switch back to benefits on your first spouse’s record.
- If your ex passes away and you remarry after age 60 (50 if disabled), you may still qualify for survivor benefits.
So remarriage does not necessarily prevent you from claiming Social Security income based on your work history with an ex. But it can block spousal benefits if you remarry before age 60. Contact a Social Security representative if you have any questions about your specific situation.
How do I coordinate benefits with my ex-spouse?
Coordinating the timing and claiming of Social Security benefits with your former spouse requires some strategic planning but can really optimize your total retirement income. Here are some tips:
Compare benefit estimates:
Have each spouse create their own my Social Security account online to view benefit projections at ages 62, full retirement age, and 70. Discuss who has the higher benefit and by how much.
Maximize the higher earner’s benefit:
The higher earner should delay claiming as long as possible to earn delayed retirement credits. Their benefit will reach maximum at age 70.
Claim early with lower earner:
Meanwhile, have the lower earner claim spousal benefits as early as age 62 to start retirement income flowing. This works best if the lower earner is more than two years younger than the higher earner.
Switch to own benefit later:
When the lower earner reaches full retirement age, they can switch to their own benefit if it exceeds spousal benefits. This allows them to claim early but receive the highest amount later.
Communicate filing plans clearly:
Both spouses should fully understand and consent to the coordinated filing plan. Mismatched filing ages can occur if there is not clear communication between the divorcing couple.
Review annually:
Check back annually and adjust your claiming strategy if life circumstances or Social Security rules change. Ongoing coordination leads to the optimal outcome.
Seek expert guidance:
Consider consulting a financial advisor or Social Security expert to ensure you understand all the nuances and make the very best decisions. An outside perspective can help identify extra opportunities to maximize your benefits.
Conclusion
Divorce and Social Security can be a complicated combination. The ability to claim retirement benefits based on your ex-spouse’s earnings record provides a valuable source of income, but only under specific circumstances. Understanding the detailed eligibility rules, benefit amounts, and application process lets you take full advantage of this Social Security provision. With some advance planning, coordination, and expert guidance, you can optimize this income source in the midst of your retirement transition.