Divorced Couples Have a Surprising Advantage When It Comes to Social Security

Divorce can, in general, be pretty rough on your finances. But, in some cases, it can actually be beneficial when you are claiming Social Security benefits.

That's because, in certain cases, the rules for claiming a certain type of Social Security benefit are actually more favorable for people who are divorced compared with those who are still married.

Here's the advantage that those who are divorced may have when it comes to their Social Security claim.

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This Social Security rule is more favorable after divorce

The Social Security rule that ends up being beneficial to divorced individuals is related to spousal benefits.

Spousal benefits are available on your husband or wife's work record. They could total as much as 50% of your spouse's standard benefit, assuming you claim them at your full retirement age. If you were the lower earner or didn't work much during your career, your spousal benefits may be worth more than your own Social Security retirement checks.

However, there's a catch when it comes to claiming spousal benefits. If you're still married, you cannot claim your spousal benefits until the spouse whose work record the benefits are based on has claimed his or her own retirement checks.

In other words, if you're the wife and were the lower earner, you have to wait for your husband to get his retirement benefit to unlock your spousal benefits.

This situation can affect your retirement planning, as you may have to wait months or years for your higher-earning spouse to be ready to claim. That's especially true if you're trying to max out survivor benefits, which would generally shrink if the higher earner didn't delay his or her own benefits claim as long as possible until 70.

You don't have to wait to claim your spousal benefits if you're divorced, though. That's a major advantage.

As long as you've been divorced for at least two years, you can claim your spousal benefits whenever you want after becoming eligible, even if your spouse hasn't started collecting retirement checks. Of course, claiming before your own full retirement age would shrink your benefit. But you get the freedom to choose. And your ex can't stop you from claiming benefits on his or her work history.

Are you eligible for spousal benefits after a divorce?

Being able to claim spousal benefits whenever you want, without having to coordinate your Social Security claiming strategy with your ex, can be a major advantage.

However, only certain divorced individuals can take advantage of this option. That's because you only qualify for spousal benefits after divorce if you were married for 10 or more years before the marriage ended and if you haven't remarried.

You should be aware when you're eligible for benefits and claim them if you're allowed to and if they're a better deal than your own benefit. Social Security is protected against inflation and guaranteed for life, so if you can claim spousal benefits on your own schedule and get some of this money coming into your bank account when you need it, that's a huge win for you.

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