Social Security Benefits and Divorce

Are you approaching retirement and also facing down a divorce? You are in good company. The divorce rate has doubled in the past 25 years for those over 50. In fact there is even a term for it coined by researchers. “Gray divorce” is here to stay and I want to help you navigate it.

While approaching retirement and divorce at the same time can be scary, it’s important to prepare yourself now to make sure you get the most out of your money. I was recently quotes in US News & World Report on maximizing your Social Security benefits.

Most people don’t realize that if they were married for 10 years or more, they can most likely collect social security on their ex’s earnings record. This is especially helpful if you had low earnings throughout the marriage. 

Where to Start

Your first step should be familiarizing yourself with the accounts you and your spouse have. I know it can be overwhelming to think about tracking down all of the accounts, but the best place to start is by making a list of the accounts you know about. Think about bank, investment, retirement credit card, and loan accounts.

Next, calculate your Social Security benefit. Many women are surprised to learn they can receive Social Security based on what their ex-husband earned. This can be a lifeline to many in retirement and is an important consideration as you plan your financial future.

How It Works

First, find out what your own Social Security benefit is. Then find out your ex’s Social Security retirement benefit. Multiply his benefit by 50%, and this will be the amount you might be able to collect. You are entitled to receive either your benefit, or 50% of his benefit, whichever is greater. (You cannot collect both.)

This calculation and benefit to you does not affect what your ex gets. He will still get his full benefit. You don’t need his permission, and he does not have to know that you have applied for this. It’s between you and the government. Get the highest amount from Social Security that you can! And know that your ex won’t “lose” because of this.

As with everything, there is some fine print. You had to have been married for ten year or more, and you cannot be remarried. 

Ten Year Timeline

The ten year mark is critical to this benefit, so if your marriage is coming to an end but nearing the ten year mark, you have a decision to make. It could make a significant difference in your retirement benefits, so it may make sense to wait until your marriage has reached ten years before finalizing your divorce.

How I Can Help You

If you’re considering divorce but don’t know where to start with the financial part of it, download my free resource, Planning For Your Divorce.

It is my life’s work to help women get the most out of their divorce. I know you’re afraid you might mess this up, but I've done everything I can to make it as easy as possible for you. Whether you are already in the divorce process or just considering divorce, the Divorce Money Guide can meet you where you are at right now. Don’t settle your divorce without all the financial facts on the table. You can do this!