What Happens To Your Social Security Benefits After Getting Divorced?

As if retirement and deciding how (and when) to claim Social Security retirement benefits wasn't complicated enough already, there's even more to know if you're considering or are already divorced. While splitting assets, retirement accounts, and real estate can be tricky, knowing what you might be entitled to when it comes to Social Security should also be a factor in your financial planning. You might be surprised to learn just how much a divorce (even from years ago) can change your overall Social Security benefits amounts. Plus, for anyone who might be considering a divorce, but could be facing financial insecurity as a result, it can be especially important to understand what Social Security options are available to you.

Perhaps the most important thing for retirees to do when it comes to Social Security is to start by admitting what they don't know. According to the 2023 Nationwide Retirement Institute's Social Security Survey, only 8% correctly identified the listed factors that determine maximum benefits despite 49% of people reporting they know how to maximize their Social Security. Natalie Colley, certified divorce financial analyst and lead adviser at Francis Financial, told AARP, "It's just become abundantly clear that Social Security is not something that people know, and it should be." With a bevy of potential benefits and potential claims, chances are you might not necessarily be receiving your maximum benefit amount. So let's dive into a lesser-known benefit now and how, exactly, it applies to divorced couples.

There's a lot to know about spousal benefits. For starters, they are generally intended for married couples with a sole income, meaning only one half of the partnership works/worked full-time. These benefits are available to current spouses, but can also apply to widowed spouses (widowed spouses can file for the benefits once they turn 60). If you're wondering how financially significant spousal benefits can be, you might be surprised. Spousal benefits can be between one-third to one-half of whatever your spouse's benefit amount is at their full retirement age (66 or 67 depending on their birth year).

Now, you might also be surprised to learn that for divorced couples, Social Security spousal benefits can apply to ex-spouses as well, provided you were married for more than 10 years and didn't remarry before turning 60. Further, unlike still-married spouses, you don't have to wait for your ex-spouse to file for their retirement benefits before you can file for your spousal benefits. This rule can be a particularly significant financial benefit if your spouse was the primary earner in your household. However, if you did work and contributed to Social Security in some way, then the Social Security Administration will determine which benefit is higher (i.e., spousal or your own personal benefits amount) and will select whichever offers the higher benefit amount.

The most important thing for divorced retirees to keep in mind is that their ex-spouse will not be notified if they file for this benefit, nor will it reduce their ex-spouse's retirement benefit amount in any way. (Speaking of, here are five reasons people claim Social Security early.)

It's worth mentioning just how much these spousal benefits tend to benefit women retirees today. Given the more traditional gender roles (as well as the differing views of women in the workplace) during much of the baby-boom generation's lives, it should come as no surprise that the prevalence of single-income households was notably higher during their career years. This, combined with the fact that divorce rates among people who are 65 and older has tripled since 1990 (a phenomenon known as gray divorce), has resulted in more women from the baby-boom cohort who might need to rely on these Social Security spousal benefits more than previous generations.

Another important thing to keep in mind is how spousal benefits can benefit you even if you aren't divorced. According to the Federal Reserve Bank of St. Louis, in 2022, about 23% of women were eligible to effectively bring up or top off their existing monthly benefit amount by utilizing spousal or ex-spousal benefits. This is a notable increase from the 5% of eligible women in 1960 who could do the same. This is largely due to the increase of women in the workplace who are able to qualify for their own benefits; however, women are still consistently paid less, meaning their benefits are more likely to be smaller than their spouse or ex-spouse's benefit amount. (See what the average Social Security benefit for a retired worker is by age.)