Divorcees should be aware that an ex-spouse may claim Social Security spousal benefits based on their work record, potentially impacting financial planning. To qualify, the couple must have been married for at least ten years, and the ex-spouse must be at least 62 years old. If divorced for at least two years, the ex can file for benefits even if the primary worker has not yet claimed theirs. However, claiming before their full retirement age can significantly reduce the benefit amount.
This situation is particularly relevant as the divorce rate among those aged 65 and older has surged, tripling since 1990. Financial professionals should consider how these claims could influence retirement strategies for clients, especially those navigating complex family dynamics.
Importantly, an ex-spouse’s claim will not affect the primary worker’s Social Security benefits or those of any current spouse, allowing for clearer financial planning without the risk of diminished benefits.
Source: fool.com