Divorce and Remarriage Effects on Social Security Retirement Benefits
White Plains, NY (Law Firm Newswire) March 18, 2014 - People considering divorce as their 10-year wedding anniversary approaches should know that delaying the split until after the decade mark can result in higher Social Security retirement benefits for a spouse with a lower earning record.
Consider an example of a divorced couple where an ex-husband had a higher earnings record than an ex-wife. If the couple was married for 10 years or more, the ex-wife can receive higher benefits based on his record, provided that she is age 62 or older and has not remarried.
Even if the ex-husband has not applied for retirement benefits, the ex-wife may receive benefits based on his record if they have been divorced for more than two years. If the woman remarries, then she is no longer able to collect the benefits unless the later marriage ends.
Recent years have seen a rise in both marriages and divorces later in life, and statistics suggest that divorcing couples may take retirement benefits into account. There is a measurable increase in divorce after the 10-year mark. As might be expected, the effect is most pronounced for couples nearing retirement age. A recent study found that for people 55 and older, there is an 11.7 percent increase in the likelihood of divorce at about the decade mark. For couples age 35 to 55, that drops to a 6 percent increase in likelihood of divorce at 10 years, and for people under age 35, there is almost no effect.
Other researchers are skeptical that many people take retirement benefits into account in their divorce decisions, pointing to studies that show that only 13 percent of people are very knowledgeable about how Social Security benefits are calculated.
Whether or not divorcing couples currently consider retirement benefits in timing their split, many advisers agree that they should. Divorcing just short of the 10-year mark could result in thousands of dollars in lost benefits, so it may be worthwhile for some to delay the process.
Financial considerations are often part of decisions about divorce, so it is important to be aware of how Social Security benefits can be affected.
New York Contact:
Maria M. Brill
Littman Krooks LLP
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