Getting divorced can have major financial implications, especially when it comes to Social Security benefits.
While the rules surrounding Social Security can seem complex, there’s a valuable quirk that divorced spouses should be aware of – the ability to claim higher benefits when their ex-spouse passes away.
________________________________________________________________________
- Divorced spouses can receive up to 100% of their ex’s Social Security benefits if the ex dies (instead of just 50% while alive)
- This “ex is worth more dead than alive” strategy allows surviving divorced spouses to double their benefits, potentially.
- To qualify, the marriage must have lasted 10+ years, and the surviving ex must be unmarried or remarried after age 60
________________________________________________________________________
The Surprising Social Security Benefit of Having an Ex Pass Away
As certified financial planner and Social Security expert Mary Beth Franklin says, “Your ex is worth twice as much dead than alive.”
It may sound morbid, but this nuance in how divorced survivor benefits are calculated can significantly impact retirement income planning – especially for women who divorce after long-term marriages.
Here’s what you need to know about claiming Social Security on an ex-spouse’s record after divorce.
Social Security Benefits for Divorced Spouses
When a couple divorces after being married for ten years or longer, the lower-earning ex-spouse can claim up to 50% of their former partner’s Social Security benefit amount at full retirement age.
You must be 62, unmarried, and divorced for at least two consecutive years to qualify.
Your ex must also be entitled to receive Social Security retirement benefits.
The divorced spouse benefit acts similar to a regular spousal benefit that a married couple could claim based on their work records.
It aims to provide retirement income to divorced individuals who may have sacrificed career earnings while raising a family.
It’s important to note that claiming survivor benefits based on your ex-spouse’s record does not affect or reduce the benefits of your ex-spouse or their current spouse.
The “Ex is Worth More Dead” Rule
Here’s where that valuable “ex is worth more dead” quirk comes in.
When the higher-earning ex-spouse passes away, the divorced surviving spouse becomes eligible for up to 100% of their late ex’s Social Security benefit amount instead of just 50%.
This survivor benefit for divorced spouses allows the lower-earner to inflate their Social Security income by claiming their ex’s full benefit rather than a partial amount.
It can double their monthly check.
Widowed divorcees can claim these higher survivor benefits as early as 60, compared to age 62 for regular retirement benefits.
However, taking it before the full retirement age will result in a permanently reduced amount.
The survivor’s benefit rule aims to provide financial protection for divorced women who may have limited retirement savings after leaving the workforce to care for a family during the marriage.
Maximizing Your Social Security Survivor’s Benefit
To prepare to claim a divorced survivor’s benefit down the road, be sure to keep documentation such as your ex-spouse’s Social Security number and copies of your marriage certificate and divorce decree.
This will streamline the process with the Social Security Administration when the time comes.
Consider your ex’s earnings record and Social Security benefit estimates if you were married long enough to qualify for divorced spouse benefits.
A higher benefit amount on their record could lead to a higher survivor’s benefit for you.
While losing a former spouse is never easy, this Social Security divorcee rule can boost income for the surviving lower-earner during retirement.
It’s an important provision for divorced individuals to understand and plan for as part of their overall retirement strategy.
Leave a Reply