Ask Dana! A Column Where Personal Finance and Life Intersect By Dana R. Mascalo CFP®
divorced spouses, and any important con- siderations to be aware of?
H Navigating social security benefits
if you are divorced—or thinking about divorce—can sometimes be confusing. Luckily, we have the perfect partner on our team who can review this for us. Lise Robinson, CFP®
FINANCIAL ANALYST® , RLP® , AAMS® , C(k)P®
i Dana: I’m divorced. Would you help me understand what social security benefits are available for
“Seeking personalized advice from qualified professionals can make certain decisions, such as financial implications of divorce or when to take social security, much easier and less stressful.”
, is a CERTIFIED DIVORCE and has extensive
experience working with divorced clients as well as those considering the financial implications of getting a divorce.
Hi Lise: What are some important social security highlights for divorced spouses that you would like to share with our readers today?
Lise: Happy to help. The first thing to
touch on is the concept of spousal ben- efits. Social Security was designed so that if one spouse earns significantly more than the other, the lower-earning spouse can claim benefits based on the higher- earning spouse’s income. In that situation, the spousal benefit is equal to 50% of the higher wage earner benefit, and these
benefits do not necessarily go away upon divorce. However, there are a few rules that apply in order for you to claim benefits based on an ex-spouse’s income rather than your own:
• Your marriage lasted 10 years or longer.
• You remain unmarried. If you remarry, your benefit will be recalculated based on your own work history along with your current spouse’s income.
• You are age 62 or older.
• The benefit that you are entitled to receive based on your own work record is less than the benefit you would receive based on your ex- spouse’s work record.
• The ex-spouse needs to be eligible for benefits and be at least age 62 before you can apply for benefits. But as long as you have been divorced for at least two years, the ex does not have to apply for benefits before you can apply for yours.
If all these parameters hold true, you will be eligible for a benefit amount based on your ex-spouse’s income. It does not matter if your ex-spouse has remarried, and you do not need to know their earnings record or even their whereabouts. All you have to do is provide evidence that you were married (such as a marriage certifi- cate) and identifying information, includ- ing the ex’s name, date of birth, and social security number (if available), and the date and place of marriage and date of divorce. From there, the Social Security Adminis- tration (SSA) can look up the ex-spouse’s record and you will automatically receive the higher of either your own work record benefit or the spousal benefit.
Another thing to keep in mind is
the SSA’s definition of full retirement age (FRA) for both you and your ex. Filing for benefits before either of you have reached full retirement age will result in a
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