Social Security and Divorce

Social Security is one of the most talked about government programs available. You hate to see the tax come out of your paycheck while working, but love to see the monthly deposit into your bank account in retirement.

Before I discuss the rules for social security after divorce, I will lay out the very basics of social security. The most important thing to understand is you have a “full retirement age” or the age when you can receive 100% of your social security payment. You can take social security as early as age 62 and receive a reduced benefit or you can wait until age 70 and receive a larger benefit.

Here is a visual of this:

A benefit of $2,500 per month at full retirement age could be as low as $1,750 or as high as $3,100, depending on when you claim.

After Divorce

Now we get into the “weeds” of Social Security after divorce. The first thing to know is that anything you do related to Social Security will not affect your ex-spouse. If you claim on their record, their benefit will not change, and they won’t even know unless you tell them.

Let’s divide this into two different situations.

1. Your Ex-Spouse Is Still Living

If your ex-spouse is still living, you were married for 10 continuous years and divorced for 2, and you have not remarried then this applies to you.

In this case, you are eligible to receive 50% of their full retirement benefit.

We do have to blend some rules together. If you recall, you must be aged 62 to receive benefits, this still applies. At age 62 your own benefit will be reduced BUT ALSO the amount you can receive on your ex-spouses’ record will be reduced.

What we recommend for clients who will be claiming on their ex-spouses’ record is to wait until they reach their full retirement age and then claim the benefit, that way, they won’t receive a reduced benefit.

2. Your Ex-Spouse Is Deceased

Now our rules change.

If your ex-spouse is deceased, you were married 10 years, and you do not remarry before age 60, then this applies to you.

In this situation, you can receive up to 100% of their social security benefit, which can be a big deal!

The same blending of rules applies, if you claim that benefit early (before your full retirement age) then the amount will be reduced.

I also want to note that throughout all these strategies, you will never be able to receive both your own and an ex-spouses’ benefit, the social security administration will only pay you the max amount you are entitled to at the time you file.

Also, if your ex-spouse was remarried, you will not be taking anyone else’s benefit, both you and your ex-spouses’ widow can claim on the same record.

Finally, here is a quick list of items to take to the Social Security office:

The Basics:

• Your Social Security Number and your Ex-Spouse’s SSN. (If you don’t have theirs, try to provide their birth date, place of birth, and parents' names—the SSA can often find it for you).
• Your Birth Certificate (Proof of age).
• Marriage Certificate (To prove the relationship existed).
• Final Divorce Decree (Crucial: This proves the marriage lasted the required 10 years).

Financial & Work Info:

• Your W-2 forms or self-employment tax returns from last year.
• Direct Deposit info: Bring a voided check or your bank’s routing and account numbers so you can get paid!

If Your Ex-Spouse has Passed Away:

• Death Certificate (The funeral home often handles this, but have a copy ready just in case).
• U.S. Military Discharge Papers (DD-214) if your ex-spouse served before 1968, as this can sometimes boost the benefit amount.