Read on to learn more about what it takes for an ex-spouse to claim benefits.
Think tank proposes capping Social Security benefits at $100,000
A Washington think tank has proposed capping annual Social Security benefits for married couples at $100,000 as a way to reduce a looming deficit in retirement trust funds.
If you’re among the approximately 43% of couples whose first marriage ends in divorce, you understand the emotional and financial challenges of moving on. But did you know that your ex-husband may claim spousal benefits based on your work history?
You’ve probably gone out of your way to resolve issues related to joint property and retirement accounts like 401(k)s, but whether your ex-husband files a Social Security claim based on your work history is out of your control. Here’s everything you need to know about when your ex-spouse can claim spousal benefits.
qualification
The eligibility requirements that an ex-lover must meet to receive benefits are:
- Marriage period: It must have been at least 10 years since they got married.
- When divorced: If it’s been at least two years since your divorce, your ex-spouse can claim benefits even if they haven’t filed yet.
- year: Your ex-spouse must be at least 62 years old to make a claim, but if you make a claim before Full Retirement Age (FRA), you may only receive benefits of 32.5% of the amount you would have received at FRA (known as the “primary amount”).
- Marital status: Your ex-lover must not marry someone else while claiming Social Security spousal benefits on your record.
- Record of their work: Your ex-husband’s own severance pay must be less than the severance pay they would have received based on your service record.
- year: Your ex-spouse must be 62 or older to make a claim, but filing a claim before Full Retirement Age (FRA) may result in a permanent reduction in your monthly benefits.
If you wait until FRA claims Social Security, your spouse can receive up to 50% spousal benefits. To collect that 50%, your ex will also have to wait until his or her FRA files a claim. The following table shows how much your benefits will be reduced if your ex-husband claims before FRA.
For the purpose of this illustration, let’s assume their FRA is 67 and their monthly FRA benefit is $2,000.
Data source: Author calculations.
Given that divorce rates for people over 65 have nearly tripled since 1990, it’s valuable to know whether your ex-spouse making a claim based on your work history will affect you. The answer is no. Their claims do not affect your personal Social Security benefits. Also, if they make a claim based on your work record, it won’t affect your current spousal benefits.
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