Your marital status could affect your benefits more than you might think.
Retirement is a major milestone in life, filled with new adventures and experiences. For some older adults, that involves getting married or, perhaps, divorced.
While there are many ways that marriage or divorce can affect your finances, it could also impact your Social Security benefit, in some cases. If you’re entitled to spousal or divorce benefits, your marital status could change your monthly payment — or potentially qualify or disqualify you from benefits altogether.
What are spousal and divorce benefits?
Spousal and divorce benefits are a special type of Social Security available to those who are currently or previously married. To qualify for spousal benefits, you must currently be married to someone who is entitled to either retirement or disability Social Security. If your marriage ends, you’ll lose spousal benefits — but you could then qualify for divorce benefits.
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Divorce benefits have a lengthier list of requirements, however. To qualify, your previous marriage must have lasted for at least 10 years, your ex-spouse must qualify for retirement or disability benefits, and you can’t currently be married. If you’ve been divorced for less than two continuous years, you’ll also need to wait until your former spouse begins claiming Social Security before you can file for divorce benefits.
In both cases, the maximum payment is 50% of the amount your spouse or ex-spouse is entitled to at their full retirement age. You also generally need to be at least 62 years old to qualify for either type of benefit, but to receive the full payment, you’ll have to wait until your own full retirement age to begin claiming.
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If you’re also entitled to retirement benefits based on your own work history, you can still collect spousal or divorce benefits. However, you’ll only receive the higher of the two amounts, not both.
How marriage or divorce can change your payments
In some cases, getting married or divorced after you begin taking spousal or divorce benefits could change your benefit or make you ineligible for this type of Social Security.
For example, say that you’re currently married and collecting spousal benefits, but you and your partner divorce after nine years of marriage. Once you’re no longer married, you won’t qualify for spousal benefits. But because you were married for less than 10 years, you also won’t be eligible for divorce benefits.
Similarly, say you’re currently not married and receiving divorce benefits. If you remarry, and your new spouse isn’t entitled to retirement benefits, you’ll lose divorce benefits but also won’t qualify for spousal benefits.
Your marital status can also change your benefit, depending on how much you and your spouse or ex-spouse are earning. For instance, say you’re collecting $1,500 per month in divorce benefits and you marry someone who’s entitled to $2,000 per month in retirement benefits. While you could still qualify for spousal benefits after remarrying, your maximum payment would only be $1,000 per month.
The reverse is also true, however. Maybe you didn’t qualify for divorce benefits, but after remarrying, you can receive spousal benefits. Or if you remarry and your current spouse is entitled to a higher benefit than your ex-spouse, you could collect hundreds more per month in spousal benefits than you were previously receiving in divorce benefits.
Should Social Security affect your marital plans?
There are countless factors to consider when deciding whether to marry or divorce, and for most people, Social Security probably isn’t the highest priority on that list. However, it’s still something to think about, especially if you’re relying heavily on spousal or divorce benefits in retirement. Your marital status could affect your payments by hundreds of dollars per month — or even disqualify you from benefits altogether — so it’s wise to think about how your decision will affect your finances.
Social Security benefits can be a lifeline in retirement for many people, so it’s smart to ensure you know how your marital status will affect your monthly checks. If you get married or divorced later in life, maximizing your spousal or divorce benefits could help you enjoy a more financially secure retirement.