Divorce. Can it Affect Social Security? Of Course!

In the process of divorcing, couples tend to spend their energy on the here and now, sorting through the assets of today while ignoring the assets of tomorrow. I would argue that the assets of tomorrow, such as pension, social security, and life insurance, deserve equal focus. Both spouses need to understand what they are entitled to in the future to make the best decisions today.

For the purposes of this discussion, I want to focus on Social Security since it applies to all of us. As a financial advisor, I have coached many clients through divorce. Typically, how the divorce is going to affect their Social Security benefits is the last thing on their mind. However, I always bring it up because individuals must know and weigh the options that are available to them in order to make an educated decision.

I educate clients on the following facts regarding collecting Social Security pursuant to divorce:

• Your marriage must have lasted at least 10 years to qualify for divorced spouse benefits.
• You are entitled to spousal benefits or widow benefits.
  Spousal benefits:
  • You must be at least 62 to collect spousal benefits from an eligible ex-spouse.
  • If you remarry at any time and your ex-spouse is alive, you forfeit the ability to collect from your ex-spouse’s benefits.
  Widow benefits:
  • You must be at least 60 to collect widow benefits from an eligible ex-spouse.
  • You must wait until you are at least 60 to remarry in order not to forfeit the ability to collect benefits from your ex-spouse.
• Collecting from an ex-spouse does not affect their benefit in any way.

There are a lot of intricacies at play. As an advisor, I can outline the Social Security situations and guide clients to their most favorable scenario.

DISCLOSURE

Please Remember: Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended and/or undertaken by Marcum Wealth-“Marcum”), or any non-investment related content or recommendations, will be profitable or prove correct. Although Marcum Wealth and Marcum LLP may collaborate on presentations when appropriate, Marcum Wealth and Marcum LLP are two separate entities. Reliance on Information Provided: Marcum has relied, and will rely, upon information provided by you, and has not, and will not, verify the accuracy of any such information that you have provided. Accordingly, in the event that any such information provided is inaccurate or incomplete, the corresponding results or recommendations will be inaccurate or incomplete. It remains your responsibility to notify Marcum of any changes in the information provided. Please Note: Projection/Assumption Limitations. To the extent that any portion of the content reflects assumptions and/or projections, no such content should be construed or relied upon as an absolute probability that such an assumption or projection will prove correct or projected result will occur. To the contrary, a different result (positive or negative) can, and most likely will, occur. Materially different results could occur at any specific point in time or over any specific time period. The purpose of the projections is to provide a guideline to help determine which scenario best meets current and/or anticipated financial situations and/or objectives, with the understanding that either is subject to change, in which event the client should immediately notify Marcum so that the above analysis can be repeated. Please remember that it remains your responsibility to advise Marcum, in writing, if there are any changes in the information provide d above, including any change in your personal/financial situation for the purpose of reviewing/revising previous recommendations and/or results, or if you would like to impose, add, or to modify any reasonable restrictions to Marcum’s investment advisory services.