Social Security Claiming: The Classic Case of Divorce

The best approach, according to the authors, would be for Kathy to file in July 2029 at age 67 for her full worker’s benefit of $1,002. She could also file at that time for a full divorced spousal benefit of $133, and she would once again expect to collect a widow’s benefit of $2,270 for the last two years of her retirement projection.

This strategy would deliver $312,125 in projected lifetime benefits, or about $20,000 more than the second-best claiming strategy.

Key Concepts with Divorce and Social Security

As outlined in Kathy’s case study, an ex-spouse who wants to claim spousal benefits must have been married for at least 10 years.

The couple must have been divorced for two years, or the ex-spouse must already be claiming Social Security. Also, the ex-spouse must not have remarried, but if their “new” spouse and the ex-spouse are both dead, a person can claim the highest benefits of either.

Generally, the ex-spouse making the claim will get 50% of their former spouse’s primary insurance amount, regardless of when the former spouse claims Social Security. In other words, the ex-spouse will get half of what their former spouse’s benefit would be at full retirement age.

Another important concept to grasp is that the spousal benefit amount “tops up” the claiming spouse’s own benefit. If, for example, an ex-wife’s Social Security benefit is $1,000 a month, and her ex-husband’s benefit at full retirement age is $2,400, she is eligible for a $1,200 spousal benefit.

In practice, the ex-wife will get an additional $200 because the benefit figure for her ex yields a bigger benefit for her. But she doesn’t get both, i.e., her $1,000 own plus $1,200 from the ex-spouse’s benefit.