Should You Claim Your Ex’s Benefits?

Decisions regarding finances and social security can be intricate, especially when they involve a former partner from a past divorce. Your marriage vows can pay off in the form of higher Social Security benefits even decades after the ink dried on your divorce decree. You may qualify for 50% of your ex-spouse’s benefit if you haven’t remarried, your marriage lasted at least ten years, and two years have passed since your divorce was finalized.

 When contemplating whether it is more advantageous to claim 50% of your ex-partner’s social security benefits or retain your own, it is crucial to consider several key factors. Here are some essential points to weigh when making this important decision.

#1 Understand Social Security Eligibility: 

You must meet specific criteria to determine whether social security benefits are available to you based on your ex-partner’s record. Eligibility criteria:

  •  You must be 62 years of age
  •  Over ten years of marriage
  •  your ex-partner must also be eligible for benefits.

#2 Evaluate Your Benefit Amounts: 

It’s essential to compare the benefits you can receive on your record versus those based on your ex-partner’s record. Social Security Administration (SSA) statements or online calculators can be used to estimate your projected benefits. Consider your income history, work credits, and potential future earnings.

#3 Understand the Rules: 

The rules surrounding social security and divorce can be intricate. Generally, you are entitled to 50% of your ex-partner’s full retirement benefit if you meet the eligibility criteria. However, remember that you cannot simultaneously claim both your and ex-spousal benefits, and you will receive the higher amount, but not both.

#4 Assess Financial Need:

Look at both your current and future financial needs. If your benefit amount is substantial and can meet your financial requirements, it may be better to retain your benefits. However, if your ex-partner’s benefit amount is significantly higher, it could provide you with a more comfortable retirement or address specific financial needs.

#5 Examine Longevity Factors: 

Assess your life expectancy and health condition. If you anticipate living a long life, it might be beneficial to maximize your benefits. Taking your own benefit may allow for higher monthly payments over a more extended period, which could be advantageous in the long run.

#6 Consider Future Earnings:

If you plan to continue working, you should know about the Social Security earnings test. This test applies if you claim benefits before retirement while continuing to work. The earnings test reduces your benefits by a certain amount for each dollar earned over the yearly limit. Analyzing the impact of the earnings test on your benefits is crucial in making an informed decision.

#7 Seek Professional Advice: 

Considering the complexity of the decision and the individual factors involved, consulting with a financial advisor or a social security expert is highly recommended. Financial advisers can provide personalized advice based on your circumstances, including potential tax implications, spousal benefits, and other retirement planning considerations.

#8 Consider Personal Factors:

Besides the financial aspects, personal factors should also be considered. Consider your relationship with your ex-partner and the potential impact on that relationship if you choose to claim benefits based on their record. Evaluating the emotional implications and potential conflicts is essential in making a well-rounded decision.

#9 Reevaluate Regularly: 

Social security rules and regulations may change over time, and it’s crucial to stay informed and periodically reassess your situation. New information, altered financial circumstances, or changes in the law might warrant reconsidering your initial decision.

In conclusion, deciding between taking 50% of your ex-partner’s social security benefits or keeping your own is a complex matter influenced by various factors such as eligibility, benefit amounts, financial needs, life expectancy, future earnings, and personal considerations. The majority of people will get more Social Security if they claim based on their own record rather than their ex’s. Collecting on an ex’s record can boost your monthly checks if you don’t have much work history. If you are unsure, always consider consulting a financial advisor.