Divorce or re-marriage can have a huge impact on a Minnesota resident, both emotionally as well as financially. After a divorce, an individual may have too many financial obligations to look after. Most people tend to overlook the financial angle in a divorce. Even more are unaware of the calculation of the Social Security benefits. A change in marital status also has a change on this critical retirement asset. A recent report shows that more elderly couples are opting for divorces in United States, including cities in Minnesota.
If a Minnesota resident has been married for less than 10 years, that individual will not be eligible to claim the divorce spousal benefit. After completion of 10 years, the right to claim an individual benefit or the benefit of a previous spouse’s exists, depending whichever is higher. However, re-marriage after a divorce will deny an individual the benefits from the former spouse.
The minimum age for filing a spousal benefit is 62 years, and this can be a independent filing if someone has been divorced for at least two years. The Social Security allows an individual to make the independent filing, and there is no obligation to wait for a former spouse to make a filing. In case of marriage over 10 years or more, or more than one marriage, the person is eligible to claim both of the benefits and will receive the one with the higher benefits.
Divorces and remarriage are complex issues, and if the issues are related to the finances, it may be best to get the most accurate information about options. Doing so can help a Minnesota resident understand the pros and cons of a divorce.
Source: Fox Business, “5 Ways Divorce Can Impact Your Social Security Benefits,” May 13, 2014