In recent years, it has become more common for older couples to divorce after decades of marriage. “Gray divorces” tend to be more complex than divorces that occur earlier in life. When divorcing spouses are close to or past retirement age, they may worry about how splitting their assets and ending the marriage might affect their standard of living during retirement.
Typically, retirement savings and pensions accumulated during marriage are divisible during divorce. What happens to the benefits that older couples rely on during their golden years?
Divorce does not end eligibility
Older couples ending long-term marriages are more likely than couples in their 20s or 30s to have highly uneven earning potentials and work histories. In a grey divorce, one spouse may have stayed home to raise the couple’s children and put much less emphasis on their career to be available for them.
They may then rely on their spouse’s work history to qualify for Social Security retirement benefits and Medicare insurance coverage. Fortunately, there are special eligibility rules in place for dependent spouses after divorce.
Provided that the marriage lasted for at least 10 years, the lower-earning or dependent spouse can apply for benefits based on the work history of the higher-earning spouse. The claim of a dependent former spouse does not diminish the benefits received by the higher-earnings spouse.
Divorced retirees can supplement their Social Security retirement benefits based on the income of a higher-earning spouse. They can also become eligible for benefits that they could not receive based on their own work history.
Learning more about the unique challenges that arise during a gray divorce can help spouses protect themselves. Long-term marriages make people eligible for key benefits even after the marriage ends. Having experienced legal guidance can help a divorcing spouse protect their rights and their financial future.
