Your Divorce Is Complete. Or is it?

facebooktwitterlinkedinby featherbroken-heart-1431022055X45With 50% divorce rates in America, (higher for subsequent marriages) matrimonial attorneys and divorce mediators are busy. As part of the settlement, their financial check list probably includes updating investment beneficiary forms including: .

  •  IRA  and 401(k)accounts
  • Life insurance policies
  • TOD (transfer on death) investment accounts
  • Annuity contracts

There’s one more item to look into which your attorney may have neglected to explain; your social security benefits. This is true even if your ex- spouse has not yet applied for benefits.

The information below can be found on the Social Security Administration web site. Here’s the readers digest version.

If you are divorced, but your marriage lasted 10 years or longer, you can receive benefits on your ex-spouse’s record (even if he or she has remarried) if:

  • You are unmarried.
  • You are age 62 or older.
  • Your ex-spouse is entitled to Social Security retirement or disability benefits.
  • The benefit you are entitled to receive based on your own work is less than the benefit you would receive based on your ex-spouse’s work.

Your benefit as a divorced spouse is equal to one-half of your ex-spouse’s full retirement amount (or disability benefit) if you start receiving benefits at your full retirement age.

If you remarry, you generally cannot collect benefits on your former spouse’s record unless your later marriage ends (whether by death, divorce or annulment).

If your ex-spouse has not applied for retirement benefits, but can qualify for them, you can receive benefits on his or her record if you have been divorced for at least two years.

If you are eligible for retirement benefits on your own record and divorced spouse’s benefits, we will pay the retirement benefit first. If the benefit on your ex-spouse’s record is higher, you will get an additional amount on your ex-spouse’s record so that the combination of benefits equals that higher amount.

If you continue to work while receiving benefits, the retirement benefit earnings limit still applies. If you are eligible for benefits this year and are still working, you can use our earnings test calculator to see how those earnings would affect your benefit payments.

The amount of benefits you get has no effect on the amount of benefits your ex-spouse or his or her current spouse may receive.

Want a fun way to keep your spouse happy? Try dancing!
http://bhwealth.com/want-to-spice-up-your-marriage-learn-how-to-dance-together/

Sources:
https://www.ssa.gov/planners/retire/yourdivspouse.html

Want to Spice Up Your Marriage? Learn How to Dance Together

Please note: BH Wealth does not provide tax or legal advice. Please speak to your legal and tax professionals.

Written by Jaimie Blackman

Jaimie Blackman

Jaimie Blackman has created Sound Financial Decisions ™ powered by MoneyCapsules®, to help guide business owners through the complexities of succession planning.

Jaimie writes “Smart Succession”, a monthly column in Music Inc., and also writes a bimonthly column for Canadian Music Trades magazine. He has spoken at NAMM U Idea Center, and at Yamah’s Succession Advantage.

As a financial literacy educator he has taught at New York University and has lectured at the 92nd Street Y, Marymount Manhattan College, and CUNY.

As President of BH Wealth Management, Jaimie also helps his clients implement investment and insurance solutions which are aligned to their personal values. Visit bhwealth.com to learn more.

To subscribe to Jaimie’s Succession Success: Insights for Music Retailers, visit moneycapsules.com.

The purpose of this post is to educate. Our content should not be construed as advice. If legal, tax or other advice is required by the readers, professional advice should be sought.

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