Divorced? Are You Eligible to Collect Social Security Benefits off Your Ex’s Record?

social security benefits divorce retirement benefits

Divorced Spouse Can Collect Social Security Benefits Under Certain Conditions

A Divorced Spouse May Be Eligible For Social Security Benefits Once They Hit Retirement Age

social security benefits divorce retirement benefitsTypically, when a divorce is settled, so are the marital assets. Yet, not a lot of people know that as you reach retirement age, there may be one more benefit you can collect from your divorce.

In a MassMutual poll conducted in 2021, 30% of individuals didn’t know that a divorced person may potentially collect social security benefits on their ex-spouse, once they hit retirement age.

Back in May of 2016, we discussed Social Security benefits  after the divorce is finalized in our post, “Social Security Benefits Can Be Maximized Post Final Divorce Decree“, but with divorce rates highest among those ages 55-64, according to the US Census Bureau, it’s a good topic to revisit and reiterate, especially if you’re nearing retirement age.

Now in order to qualify for the divorced spouse Social Security Benefits, there are a few conditions that ”must” be met:

  • Your marriage lasted 10 or more years; and
  • You are at least 62 years and not remarried; and
  • Your ex-spouse is eligible for Social
… Read More... “Divorced? Are You Eligible to Collect Social Security Benefits off Your Ex’s Record?”

LEGAL ALERT: Need Money? The CARES Act Changed the Rules about 401(k) Withdrawals through Year End

Alert Key Legal Update

New CARES Act Provision Allows Early Retirement Money Withdrawl From Retirement Account Without Penality During COVID-19 Pandemic

covid-19 money retirement cares act

Are you aware that the CARES Act  made significant changes to the rules about withdrawing money from accounts? If COVID-19 and the pandemic has created an extreme hardship on your financial situation, you MAY have an option that you have not yet considered – but only through the end of 2020. Not many Americans have taken advantage of this new provision thus far.

As you may know, the general rule was that, you couldn’t take money out of your retirement accounts before you were 59 1/2 without incurring an “early withdrawal” charge or penalty. That 10% tax penalty was included by the IRS to discourage folks from taking money  out of their retirements early.

CARES Act Changes:

  1. If you meet the criteria, you may withdraw up to $100,000 per person from certain qualifying retirement  accounts without owing the 10% penalty. NOTE: This does NOT waive income tax owed on the withdrawal amount.
  2. You may ONLY withdraw the amount needed to overcome a specific group of defined hardships such as defending a foreclosure action, home repairs from a disaster, or medical
… Read More... “LEGAL ALERT: Need Money? The CARES Act Changed the Rules about 401(k) Withdrawals through Year End”

Tips for Divorce Lawyers Dealing with Grey Divorce Matters

grey divorce retirement

Grey Divorce Matters

How Should Divorce Lawyers Tackle Grey Divorce?

grey divorce retirementMore and more couples over age 50 are divorcing these days. Today about one in four people are going through “grey divorces.” I have witnessed this trend expand exponentially over the last 30 plus years.

Assisting divorce clients who are over 50 has some unique challenges. It seems that in the majority of these cases one spouse perceives the divorce request as coming out of “left field”. Most are long term marriages and most often it is the wife who decides she wants out. I have written about this topic previously. Click here to read a blog article I wrote in 2010 with psychotherapist Donna Ferber LPC. LADC, “Sudden Divorce Syndrome: Reality or Myth?”  This 9-year-old post is worth rereading today because it sheds light on some of the challenges individuals over age 50 face post-divorce.

Divorce can certainly be difficult for individuals of any age. However, it can be especially paralyzing to those divorcing in later life. An interesting study abstract has been published in June 2019 in The Journal of Health and Social Behavior titled “Depressive Symptoms Following Later-Life Marital Dissolution and Subsequent Repartnering.” Click here to access … Read More... “Tips for Divorce Lawyers Dealing with Grey Divorce Matters”

LEGAL ALERT: The New SECURE Act – A Boon for Seniors But Not so Much for Their Heirs

Alert! Key Legal Update

Is The New Secure Act Too Good To Be True? Eligible Designated Beneficiaries Not Affected By New Law Signing

secure act IRA beneficiaries 401K plansThe president recently signed into law the Secure Act, which goes into effect on January 1, 2020, and which is an acronym for Setting Every Community Up for Retirement Enhancement Act.  As the name suggests, the focus of the secure act is on retirement planning, but has several provisions.  These provisions include raising the age for required minimum distributions of IRAs and 401Ks from 70 ½  to 72; allowing working individuals to make contributions to IRAs after age 70 ½; allowing small businesses to join group 401K plans; allowing 401K plans to include annuities; and allowing 529 plans to repay up to $10,000 in student loans.

The biggest positive changes are that you now no longer have to start taking minimum distribution from an IRA at age 70 ½, but can wait until you reach age 72 and also that if you are still working, you can continue to make contributions into an IRA after age 70 ½.  These changes are meant to address the reality that the general population is living longer than ever before and working into … Read More... “LEGAL ALERT: The New SECURE Act – A Boon for Seniors But Not so Much for Their Heirs”

Social Security Benefits Can Be Maximized Post Final Divorce Decree

Divorce Final? How To Maximize Your Social Security Retirement Benefit By Utilizing The Divorced Spouse Benefit

social security retirement benefit divorceYour divorce is finalized!  It is over and done, and you have moved on with your life.  The assets, monetary accounts, retirement accounts, and the like all have been divided per the divorce decree.  With that divorce decree in hand, you ex-spouse is no longer entitled to any future benefit you may receive, and that goes the same for you.  However, there is one benefit you want to keep in mind when you are approaching retirement age.  That benefit is the ability to collect Social Security Retirement on your ex-spouses record even if he or she has remarried!  Like all government benefits there are some requirements you must meet in order to collect under your ex-spouse’s work record.

This benefit, entitled divorced spouse benefit, requires the following:

  • Your marriage lasted 10 years or longer;
  • You are currently unmarried;
  • You are 62 years or older;
  • Your ex-spouse is entitled to Social Security retirement or disability benefits; and
  • The benefit you are entitled to receive based on your own work record is less than the benefit you would receive based on your ex-spouse’s work record.

If … Read More... “Social Security Benefits Can Be Maximized Post Final Divorce Decree”

Gray Divorce: Division of Retirement Assets Disparity

Be Sure To Hire A Divorce Attorney With Experience In “Gray Divorce” Cases

gray divorce divisionAn interesting article published in the Arkansas Business Journal discussed the issue of divorce with retirement age individuals.  As a founding member of the International Academy of Attorneys for Divorce Over 50, I personally am quite familiar with the unique issues that often arise in these “gray divorce” cases. When discussing the financial background of many couples aged 50-60, the typical equal asset allocation can be problematic.

These couples are more likely to have combined their retirement planning and savings. Over the past 5 generations, the workplace demographics have shifted.  Often, many couples who marry today both pursue a career path and develop their own separate retirement accounts.  In the 1950’s and 1960’s, married couples often relied financially on the men in the relationship to be the primary “breadwinner”.  This means that when a retirement account is discovered during the divorce process, and it’s distributed equally, each party will be left with 50% of their retirement assets even though they are often only a few years away from retirement.  Fair, right? Maybe not.

Let’s consider this scenario of Mary and John.  Mary and John … Read More... “Gray Divorce: Division of Retirement Assets Disparity”