Written by Alex Seleznev, MBA, CFP®, CFA | June 5, 2024
We frequently help our post-divorce clients successfully transition into the next chapter of their life.
Social Security planning can be complicated even under general circumstances.
There are many intricacies involved in Social Security planning post-divorce.
Unfortunately, many people are not even aware of the benefits or make preventable mistakes that can be avoided through proper planning.
We wanted to share some top questions and answers about Social Security benefits after divorce that we talk about with our clients.
1.) Am I eligible for benefits under my ex’s account?
To qualify for benefits, you must meet all of the following criteria:
- Be at least 62 years old.
- Have had a marriage that lasted at least 10 years.
- Have an ex-spouse who is entitled to Social Security benefits.
- Have not remarried.
- Your own benefit would not be higher than your ex-spouse’s benefit.
2.) How much are the benefits?
That depends on your ex-spouse's benefits.
You may be able to collect about one-third to one-half of your ex’s benefit.
At 62, the minimum claiming age, you can collect 32.5% of your ex’s full benefit amount.
If you are at full retirement age (FRA, 67), you’ll be eligible for 50% of your ex’s benefit.
The percentage increases for each month that you wait until your FRA.
3.) What are the “Deemed Filing Rules”?
You will receive a divorced-spouse SS benefit only if it exceeds your own.
If you qualify for two types of benefits, the SS Administration will pay the highest amount.
"Deemed filing means that when you file for either your retirement or your spouse’s benefit, or as a divorced spouse, you are required or "deemed" to file for the other benefit as well." – Social Security Administration
4.) Can I work and collect Social Security benefits at the same time?
Yes, but the earnings test may result in a reduction of your benefit.
This test applies only to people who have not reached their full retirement age (FRA).
If you reach your FRA after 2024, your Social Security benefits would be reduced by $1 for every $2 in earned income in excess of $22,320 per year.
5.) What if my ex gets married again?
It doesn't matter whether your ex is married or not.
Their marital status doesn't affect your eligibility for benefits as their divorced spouse.
6.) Will my ex’s benefit be reduced when I collect on their account?
It will not. Multiple ex-spouses can collect benefits from the same person’s account.
7.) What if my ex hasn’t claimed Social Security yet?
As a divorced spouse, you can apply for benefits even if your ex hasn’t claimed them yet.
You must have been divorced for at least two (2) years in this case.
This doesn’t apply if your ex is already collecting benefits.
There is much more to Social Security planning post-divorce, but we hope this message helped you address some of the more common questions.
In practice, your Social Security decisions should always be made in conjunction with your overall financial plan.