4.11.2024

Entitlement to social security: the classic divorce case | Thinking consultant

The best approach, the authors say, would be for Kathy to file in July 2029, at age 67, to receive her full $1,002 in unemployment benefits. You could also claim a full spousal divorce benefit of $133 at this point and, in turn, should expect to receive a widow's benefit of $2,270 in the final two years of your retirement projection.

This strategy would be expected to provide $312,125 in lifetime benefits, about $20,000 more than the second-best claims strategy.

Key concepts

As Kathy's case study shows, a former spouse seeking spousal benefits must have been married for at least 10 years.

The couple must have been divorced for two years or the ex-spouse must already be receiving social assistance. In addition, the ex-spouse must not have remarried. However, if both the "new" spouse and the ex-spouse are deceased, one person may be entitled to the higher benefits of the other.

Generally, the applicant's ex-spouse receives 50% of the ex-spouse's primary insurance amount, regardless of when the ex-spouse applies for Social Security benefits. In other words, the ex-spouse receives half of what the ex-spouse's benefit would be at full retirement age.

Another important idea is that the amount of the spousal benefit "complements" the applicant spouse's own benefit. For example, if an ex-wife's Social Security benefit is $1,000 per month and her ex-husband's Social Security benefit at full retirement age is $2,400, she is entitled to a spousal benefit of $1,200.

In practice, the ex-wife receives an additional $200 because the amount of benefits paid to her ex-wife provides her with a higher income. But she doesn't receive both, her $1,000 plus the $1,200 contribution from her ex-spouse.

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