Saturday, June 9, 2012

Attention Baby Boomers: Your divorced mom (or dad) may be entitled to additional Social Security benefits


Posted on: June 8, 2012

For many senior citizens Social Security benefits are essential to not only their retirement but to their continued financial existence. If you’re a baby boomer in charge of helping with your parents’ finances or a retiree in need of income, then you should know that under certain circumstances you could be entitled to additional money from the Social Security Administration. If a woman (or a man, the law is gender neutral) is divorced or has been married more than once, or her husband delayed taking Social Security, she might be entitled to a bigger monthly benefit than she is currently receiving. Though the difference may not be enormous, it could be welcome relief to someone on a fixed income.

Though the Social Security regulations can affect both men and women, the fact that women typically earn less over their working lives means that they are more likely to be collecting less in benefits then they may be entitled to due to the earnings of a former spouse. The rule says that an individual is entitled to collect Social Security benefits according to one of the following formulas: 1) based on his or her own earnings history; 2) 50% of his or her spouse or former spouse’s benefit if it is greater than their own; or 3) 100% if the former spouse is now deceased.

There are a few specific requirements that must be met to receive this upward revision in benefits: 1) the marriage must have lasted 10 years or longer, and 2) the individual seeking a former spouse’s benefit must currently be unmarried, unless the second marriage occurred after the age of 60.

Enough with the rules, you may be asking how this would work in practice. Here’s a good example: Let’s say your mom only ever worked part-time while raising you kids. She’s now retired and receives an $800 per month Social Security check. Her former husband (your dad) made more money down at the plant, working longer hours over a longer span of time and now brings home a $2,000 per month Social Security check. Rather than continue collecting the $800, your mother is entitled to collect $1,000 per month if your dad is still alive and the full $2,000 if he is deceased. As an added bonus, if the Social Security Administration determines someone is eligible for increased benefits then that person will receive retroactive benefits going back for six months.

This increase in benefits is important not only for the senior in need of money but for the family members watching over their elderly loved ones. If you find yourself facing the prospect of divorce, contact an experienced Ohio family law attorney who can help guide you through the difficult process. Count on the expertise of Twinsburg family law attorney Carol L. Gasper.

Source:Boosting Mom’s Social Security Payments,” by Ellen E. Schultz, published at WSJ.com.

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