Understanding Social Security benefits during a divorce and after can profoundly impact your financial future. In this episode of "Cover Your Assets," myself alongside my cohost Josephti Cruz delve into the complexities of claiming spousal benefits based on your ex-spouse's work history.
Recent Social Security research found that 93 percent of spousal retirement benefits go to women. That may be because they have been lower wage earners or weren’t able to qualify in larger numbers.
Navigating Social Security benefits can be daunting, let alone when you factor in different marital scenarios. The first thing a person needs to consider when thinking about spousal benefits is whether their spouse or ex-spouse is eligible for benefits. Check the latest requirements or be sure to reach out to your financial advisor about this.
A crucial point discussed is how remarrying, particularly after age 62, can influence your benefits. If your own benefits exceed half of your ex-spouse's, you’ll receive the higher amount. There are also special circumstances, such as having a disabled child or ex-spouse, which can significantly impact your benefits. But keep in mind, you can only claim one social security benefit.
Many people are unaware that multiple marriages and divorces don't necessarily complicate their Social Security benefits. Ex-spouses can claim a portion of your benefits without affecting your own, provided each marriage lasted at least 10 years. They also discuss the implications of remarriage before age 60 and the benefits of delaying claims past age 70. We also touch on scenarios where the death of a spouse entitles each qualifying ex-spouse to 100% of the deceased's benefits.
An important takeaway from this episode is the value of planning and seeking professional advice when navigating Social Security benefits during and after a divorce. Understanding the nuances of how your marital status, work history, and age can affect your benefits is essential to making informed decisions. Whether you’re considering remarriage, determining your eligibility, or thinking about when to claim, consulting with a financial advisor can help you maximize your benefits and ensure you’re financially secure as you move forward. Taking proactive steps now can make a significant difference in your retirement and long-term financial health.
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Divorce might be the end of one chapter, but it’s also a brand-new journey filled with hope and growth. Join us for practical tips for financial empowerment and insights to make this time a little less daunting.
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