A Guide to Social Security After Divorce

Divorce brings significant financial changes, and one area that is often overlooked is post-divorce Social Security benefits. Only 59% of Americans nearing retirement age know that if they get divorced, they might be able to collect Social Security benefits based on their ex-spouse’s Social Security earnings history, according to MassMutual’s Basic Social Security Quiz. Many divorced individuals may be eligible to collect benefits based on their ex-spouse’s earnings history, providing a much-needed financial boost in retirement. However, many Americans remain unaware of these benefits or how to maximize them. This guide will walk you through eligibility requirements, key considerations, and financial implications to help you make informed decisions.

Eligibility for Social Security Benefits After Divorce

If you are divorced, you may be eligible to receive Social Security benefits based on your ex-spouse’s record if you meet the following criteria:

1. You were married for at least 10 years.

2. You are at least 62 years old.

3. You are currently unmarried.

4. Your own Social Security benefit is less than half of your ex-spouse’s benefit.

5. Your ex-spouse qualifies for Social Security retirement or disability benefits.

 If you remarry, you cannot collect benefits based on your former spouse’s earnings unless your later marriage ends in divorce, annulment, or death.

How Much Can You Receive?

If you qualify, your divorced-spouse benefit could be up to 50% of your ex-spouse’s full retirement benefit. However, if you start collecting at age 62, the amount will be permanently reduced by about 25%. Waiting until full retirement age ensures you receive the maximum amount. Additionally, your benefit does not reduce your ex-spouse’s benefit—they will continue to receive their full Social Security payment regardless of whether you claim benefits. Because directly work with Social Security, your ex-spouse won’t know that you are collecting on their benefit record.

Key Points About Collecting Benefits

- You can collect benefits even if your ex-spouse hasn’t retired, as long as you have been divorced for at least two years.

- If your ex-spouse has passed away, you may qualify for widow benefits, which can be higher than divorced-spouse benefits.

- If you remarry, you lose eligibility for these benefits, unless your remarriage also ends.

Special Situations: Caring for Children

You may be eligible for benefits at any age if you are caring for your ex-spouse’s child who is under 16 or disabled. In this case, you could receive 50% of your ex-spouse’s benefit regardless of your age.

The Financial Importance of Social Security for Divorcees

Many retirees rely heavily on Social Security benefits, particularly women, who are more likely to have lower lifetime earnings due to time spent out of the workforce caring for children. According to Social Security Administration data, 95% of those receiving spousal or survivor benefits based on a divorced spouse’s earnings are women. With the rise of gray divorce, individuals must reevaluate their retirement plans, including Social Security, pensions, and 401(k) accounts. A Divorce Financial Analyst (CDFA®) can help you navigate these complexities and maximize your benefits.

Steps to Take Now

If you believe you qualify for Social Security benefits based on your ex-spouse’s record, take the following steps:

1. Gather Necessary Information: Keep records of your ex-spouse’s Social Security number, date of birth, place of birth, and parents’ names.

2. Check Your Benefits Estimate: Use the Social Security Administration’s benefits planner to see what you may be eligible for.

3. Apply for Benefits at the Right Time: Weigh your options between taking reduced benefits early or waiting for full retirement age.

Final Thoughts

Divorce is a life-changing event that significantly impacts your financial future. However, understanding your Social Security options can help ensure financial stability in retirement. By staying informed and making strategic decisions, you can maximize your benefits and avoid leaving money on the table.

For more information, visit the Social Security Administration’s Retirement Planner to explore your eligibility and benefits.