Page 18 - South Mississippi Living - October, 2017

COASTNOTES
FINANCIALFUTURES
Social Security: Understanding Divorced Spouse Benefits Part II of III: Divorced Spouses story by Suzie Sawyer
If you are divorced, it is important for you to understand the complexities of divorced spouse benefits in order to take advantage of your Social Security claiming options.
To receive divorced spouse benefits, you must’ve been married for at least 10 years and divorced for at least two years. The two-year wait does not apply when you or your ex-spouse are already claiming a Social Security benefit based on your own work record.
Assuming a full retirement age (FRA) of 66, at age 62, you can claim 35% of your former spouse’s Primary Insurance Amount (PIA). If you wait until FRA to apply, your benefit is 50% of the former spouse’s PIA. There is no benefit to waiting beyond FRA to claim divorced spouse benefits, as you will not earn delayed retirement credits of 8% per year. Only your work record benefit earns delayed retirement credits.
You do not have to wait for your former spouse to file for benefits before they are eligible for divorced spouse benefits. If both you and your ex-spouse are at least age 62, your
marriage lasted for 10 years, and you have been divorced for two years,
you are eligible for benefits from your former spouse’s work record.
Remarriage disqualifies you from collecting divorced spouse benefits. If your next marriage ends in divorce, but did not last 10 years, you can claim benefits from your former spouse of the marriage that did last
at least 10 years. If both marriages lasted 10 years, consider filing for divorced spouse benefits on the work record of the former spouse that had the highest earnings. Your former spouse remarrying has no impact on your ability to claim divorced spouse benefits.
As with married couples, Social Security’s “deeming provision” must also be considered. This provision states that if you apply for a benefit prior to your FRA, both your own work record benefit and a divorced spouse benefit (based on your former spouse’s work record) are applied. Social Security will look at both benefits and pay you the larger of the two.
You should also consult with your
legal and tax advisors regarding your particular situation.
18 SOUTH MISSISSIPPI Living • October 2017
FOR MORE REFLECTIONS OF THE GULF COAST >> www.smliving.net
Article provided by Suzie P. Sawyer, Managing Director/Investment Advisor Representative of Trinity Investment Services, LLC, who can be reached at (228) 864-4460. Securities offered through Century Securities Associates, Inc., Member SIPC and FINRA, a subsidiary of Stifel Financial Corp. Home Office: 501 North Broadway, St. Louis, Missouri 63102, (314) 342-4051.