Divorce often brings about significant changes in a person’s financial situation, and for many, understanding how their Social Security benefits work can be confusing. While it’s commonly known that Social Security benefits are based on one’s own earnings record, what many divorced individuals don’t know is that they may be able to boost their Social Security payments by up to 50%.
Provided certain conditions are met, divorced spouses can claim benefits based on their ex-spouse’s earnings record. Here’s how to take advantage of this lesser-known opportunity.
Eligibility for Social Security Benefits as a Divorced Spouse
The first step to unlocking the potential of increased Social Security benefits is understanding the eligibility requirements. To qualify for benefits based on an ex-spouse’s earnings, a few key conditions must be met:
- Marriage Duration: The marriage must have lasted at least 10 years. If the marriage lasted for less than 10 years, you won’t be eligible for benefits based on your ex-spouse’s work record.
- Divorce Status: You must be divorced and unmarried at the time of application. If you remarry, you will no longer be eligible for benefits based on your previous spouse’s earnings.
- Age Requirement: You must be at least 62 years old to start receiving benefits. However, the full amount of Social Security benefits will not be available until you reach your full retirement age, which is typically between 66 and 67, depending on your birth year.
- Ex-Spouse’s Eligibility: Your ex-spouse must be eligible to receive Social Security benefits. This doesn’t necessarily mean that your ex-spouse needs to be currently receiving benefits, as long as they are eligible to do so.
Once these conditions are met, you can apply to receive Social Security benefits based on your ex-spouse’s earnings. This is often referred to as “divorced spouse benefits.”
How Much Can Divorced Spouses Receive?
The amount of Social Security benefits a divorced spouse can receive depends on several factors, including the ex-spouse’s earnings and the age at which the divorced spouse starts claiming benefits. Here’s the key:
- The Amount of Benefits: If you are eligible for divorced spouse benefits, you can receive up to 50% of your ex-spouse’s Social Security benefit, assuming you wait until your full retirement age to claim. If you claim before reaching full retirement age, the amount you receive will be reduced.
- Comparison with Own Work Record: If your own Social Security benefit (based on your work history) is higher than what you’d receive as a divorced spouse, you will automatically receive the larger of the two amounts. This means that you won’t be penalized by choosing to claim benefits based on your ex-spouse’s record if your own work history entitles you to higher benefits.
Why This Could Increase Your Monthly Payment by 50%
In many cases, a divorced spouse’s ex-husband or ex-wife might have earned more money over their lifetime. Since Social Security benefits are based on the average lifetime earnings of the individual, a higher-earning ex-spouse could result in a higher Social Security payment.
For example, if your ex-spouse earned significantly more during their working years than you did, you could be eligible to receive half of their Social Security benefits, even though you didn’t contribute as much in earnings.
If your ex-spouse earned a considerably higher income, this can increase your monthly payment by a substantial amount. In fact, in some cases, this could represent up to a 50% boost in your Social Security benefits compared to what you would receive based on your own work history.
No Impact from Your Ex-Spouse’s Current Situation
One of the most important things to understand about divorced spouse benefits is that your ex-spouse’s current marital situation does not affect your eligibility. Even if your ex-spouse has remarried, it doesn’t impact your ability to claim Social Security benefits based on their work record.
Moreover, the amount your ex-spouse receives in Social Security benefits does not affect the amount you can claim. The Social Security Administration does not reduce your payment because your ex-spouse is receiving benefits.
What If You Remarry?
If you remarry, you lose eligibility for benefits based on your former spouse’s earnings record. This is a key point to consider before making decisions regarding remarriage. If you do remarry, you would have to meet the 10-year marriage requirement for your second spouse in order to claim benefits based on their earnings record.
However, if you divorce again, you could potentially qualify for Social Security benefits based on your second spouse’s record if the marriage lasted at least 10 years. But if you remarry and then divorce, you cannot claim benefits based on your first ex-spouse’s earnings record unless your second marriage ends in divorce or the spouse passes away.
The Social Security Claiming Process
Many divorced individuals miss out on the opportunity to boost their Social Security benefits because they don’t realize they’re eligible or they don’t apply for these benefits. The Social Security Administration does not automatically notify divorced individuals about their eligibility for these benefits, so it’s up to you to use. To claim these benefits, you’ll need to provide documentation of your marriage and divorce, including your ex-spouse’s Social Security number.
Additionally, while many people assume that they will receive their maximum Social Security benefits automatically, the process requires you to apply and select the option that benefits you the most. If you qualify for benefits based on your ex-spouse’s record, the Social Security Administration will calculate the amount you’re entitled to, which could be much higher than your own benefit.
Considerations for Early Claims
If you are considering claiming Social Security benefits at the earliest age of 62, keep in mind that doing so can reduce your monthly benefits. The earlier you start arguing, the smaller the benefit amount will be. If you wait until your full retirement age, you can receive the full benefit amount you’re entitled to, which could be up to 50% of your ex-spouse’s benefit if that amount is higher than your own.
Conclusion
Divorced spouses have the opportunity to significantly increase their Social Security payments by claiming benefits based on their ex-spouse’s earnings history. By meeting the requirements, you could receive up to 50% more in monthly benefits, making a big difference in your retirement income.
This option is especially helpful if your ex-spouse earned more than you did during their working years. If you’re divorced and haven’t explored this option, it’s worth looking into. Make sure to apply for Social Security benefits at the right time and ensure you are getting the maximum benefits you’re eligible for.
Disclaimer: This article has been meticulously fact-checked by our team to ensure accuracy and uphold transparency. We strive to deliver trustworthy and dependable content to our readers.
