Spousal benefits are commonly called family benefits; benefits available to family members.
Let’s start with spousal benefits in order to truly understand ex-spousal benefits. Current spouses are eligible to receive 50% of their spouses Primary Insurance Amount at their full retirement age. For spousal benefits to be available to a current spouse, you need to meet the following criteria:
- You need to be married at least one year.
- You both need to be at least 62 years old.
- One spouse needs to be receiving their Social Security benefit.
- The receiving spouses Primary Insurance Amount needs to be at least two times your Primary Insurance Amount.
The Primary Insurance Amount is the amount you receive at your full retirement age.
For example, if the receiving spouse’s Primary Insurance Amount is $3,000 and yours is $1,000, you are entitled to a $500 spousal benefit at your full retirement age and receive a total benefit of $1,500.
The whole key to receiving a spousal benefit as a current spouse is that one spouse needs to be receiving their benefit for a spousal benefit to be available to a current spouse. Usually, it is the higher earning spouse who is receiving their benefit.
Now, let’s talk about ex-spousal benefits. Basically, ex-spousal benefits are the same as current spousal benefits but the criteria to qualify is different. For ex-spousal benefits to be available to an ex-spouse, you need to meet the following criteria:
- You need to be single.
- You both need to be at least 62 years old.
- You need to have been married at least 10 years.
- The ex-spouses Primary Insurance Amount needs to be at least 2 times your Primary Insurance Amount.
Here is the difference between an ex-spouse and a current spouse. There are 2 categories of ex-spouse’s
- If you are divorced less than 2 years, to qualify for ex-spouse benefits your ex-spouse must be receiving their benefit. This is exactly like a current spouse.
- If you are divorced more than 2 years you are considered “independently entitled”. Your ex-spouse just needs to be eligible to claim benefits but does not need to be receiving their benefit in order for you to claim and receive your ex-spousal benefits.
Bottom line, if you are divorced two or more years and your ex-spouse qualifies for benefits, you can file for ex-spousal benefits. This is the difference between a current spouse and an ex-spouse. A current spouse can only file for spousal benefits if their spouse is receiving their own benefit. An ex-spouse can file for benefits even though their ex-spouse is not receiving their benefit as long as the ex-spouse is eligible to receive benefits, and you have been divorced 2 or more years.
Also, keep in mind:
- If you remarry, you cannot collect benefits from any ex-spouse.
- If you are divorced from more than one spouse, you can claim benefits from the highest spouse.
- A divorced spousal benefit paid to an ex-spouse does not affect benefits available to a current spouse.
- The annual earnings limitation applies before your full retirement age.
- If you have another government pension, the Government Pension Offset will apply.
- There is no advantage to be gained by deferring collection past your full retirement age.
- Family Maximum does not apply.
- If ex-spouse remarries, has no impact on your ability to receive benefits.
- Divorced spouses can still collect benefits if ex-spouse voluntarily suspends their benefit.
Always remember, take the wrong benefit at the wrong time, it’s always smaller and forever.