Social Security & Divorce Issues
Social Security may be anything but at this point in time, however, for financial planning purposes it is important to look at what the potential may be for future income.
Adding divorce to the equation can muddle the waters. Let’s clear up a few questions that I have been asked of late:
· How is my social security benefit figured – on my or my spouse’s benefits?
Actually, it’s both.
If you have been married for at least 10 years you are entitled to choose to take either your full benefit or ½ of your ex-spouses, obviously, whichever is greater.
If you are nearing the 10th year of marriage, it might be worth it to postpone the divorce until you reach the 10 year mark for the additional income that may be allocated to you. Sometimes substantially more depending on the earnings of your spouse.
· What if I am currently married or have been married multiple times?
If you are currently married you will be entitled to ½ of that spouse’s income if you have been married at least 10 years.
According to the Social Security Representative I spoke with, “If you have been married multiple times you can choose from the highest amount of any spouse that you have been married to for at least 10 years (as long as you are NOT spouse #5 or greater).” If you were not married to a spouse for at least 10 years, you are not entitled to any of their benefits.
Note that your ex-spouse’s income is in no way reduced by the amount you receive. He or she will continue to get their full retirement benefit. Up to four former spouses can collect benefits on one spouse. After four, there’s no more!
©2008-2009 Lisa C. Decker, CDFA(TM).