Social Security: The Mistake Many Divorcees Make, Leaving Many Dollars Behind
Low-income people who have divorced fear collecting Social Security spousal benefits, believing that it will further complicate the separation: it’s a serious mistake to think this way, and we’ll tell you why.
When a marriage doesn’t work, there is no other option than divorce. Without getting into the issue of how contentious or peaceful a separation can be, many spouses feel that they could lose their partner’s Social Security benefits. And that feeling is what we might consider to be a major mistake that many divorced people leave hundreds of dollars in the lurch.
Considering that many people when they are married, especially women, are engaged in housework or a job that doesn’t generate much income, they are left with the comfort that they could receive their spouse’s Social Security retirement benefits. But when they divorce, what are they left with? To the surprise of many, they may still be able to get Social Security benefits, even though they are already separated.
That’s the big mistake: many divorced people are hesitant to claim Social Security benefits from former spouses, fearing that it will reduce their ex-spouse’s benefits and create conflict with them.
Claiming spousal benefits on an ex-spouse’s record does not affect the amount of money your ex and, if applicable, your ex’s current spouse are eligible to receive from Social Security.
A spousal benefit can be worth up to 50% of what a current or former spouse is entitled to collect from Social Security each month.
In addition, applying for spousal benefits as a divorced person may generate a higher monthly benefit. If you worked and paid into Social Security your entire life, but your earnings were considerably lower compared to your ex-spouse’s, collecting Social Security benefits from your ex-spouse may pay you more than your own benefits.
For example, if someone is entitled to $3,200 a month, their current or divorced spouse could receive up to $1,600 a month from Social Security. This is how hundreds of dollars can be left uncollected from Social Security when you get divorced.