social security in divorce

Social Security

Social Security
If you’re going through a divorce later in life, social security benefits should absolutely be a topic of conversation.

A few years back I wrote a post about things to consider when divorcing later in life. One of these considerations was Social Security. Social Security continues to be an important topic of discussion for any couple divorcing later in life, because it can have a significant impact on income and sometimes retirement benefits.

Of course, just when we get comfortable with the rules and how they’re applied, Congress goes and shakes things up. As part of the Bipartisan Budget Act of 2015, just signed by President Obama on November 2, 2015, the federal government is eliminating two key pieces of Social Security that are important for retirement planning for married and divorce spouses alike.… Keep reading

Hi there,

With all the government kerfuffle in the news lately I have been thinking about how government programs and regulations affect family choices. Health insurance and Social Security are two of the ways the choice to remarry, or in some cases marry, are economically affected.

If you are divorced and receiving Social Security benefits based on your ex-spouse’s income, you may very well lose those benefits when you remarry. This is a very good post on creators.com as to exactly how Social Security works after remarriage (the piece about divorce is half way down in the article). For many folks, losing that Social Security income would be a real disincentive to remarry. My advice here is to be absolutely sure what will happen with those benefits before you say “I do.”

The next problem lies with the Affordable Care Act, also known as “ObamaCare.” The concept is admirable, but as with all large concepts, the devil is in the details. I am not indulging in political commentary here, but this presents a potentially huge problem for folks with kids who are looking to remarry. Again, my advice is to do your homework and be absolutely certain of … Keep reading

Hi there,

Social security law makes provisions for divorced spouses by allowing them to collect a portion of their former mate’s social security benefits, provided they have been married more than ten years. This is terrific for both parties as it does not deduct the amount paid to the former spouse from the larger wage earner’s payment.  In effect, a divorced couple jointly receives more than the same couple would, were they still married.

I became aware through Daniel Clement’s New York Divorce blog (a super resource) of some very tragic circumstances which have caused some folks to divorce and then live together in order to maximize their benefits.

Now, call me cynical, but I bet this happens occasionally for not so tragic reasons as well.

Best,

Nancy… Keep reading