Rowe Law Offices, P.C.
Call us for a free initial consultation
610-816-0935 Local
866-232-1913 Toll Free

Spousal benefits through Social Security after divorce

Because Social Security benefits are typically not accessible until the retirement years, they may not seem relevant to a Pennsylvania resident who is contemplating divorce. While pensions, 401(k) plans and other retirement assets may be subject to consideration during property division, Social Security issues can be handled apart from the divorce without involving the other party. During one's retirement years, it is possible to claim benefits on a former spouse's account without any impact on that party's own benefits. However, it may be helpful to explore the options prior to making such a claim to ensure that the best possible financial decisions are made.

A former marriage must have lasted for at least 10 years for spousal benefits to be received. If this is the case, the benefit could be obtained at an early retirement age of 62. An individual who will continue to work until or after full retirement age may want to delay such a claim due to a penalty that is imposed when earnings limits are exceeded. The limit is approximately $16,000 for those under the age of 66. Those who have reached full retirement age are permitted to earn nearly $42,000 while claiming spousal benefits before the penalty kicks in.

In deciding when to claim spousal or personal benefits, it is important to compare the amounts. One's personal benefit increases annually by 8 percent when not claimed from age 66 to age 70. At age 70, a personal benefit will no longer increase. By claiming a spousal retirement benefit until this point, it may be possible to maximize one's personal benefit, claiming it at age 70.

In a high asset divorce, an understanding of the financial implications of various retirement benefits could be important because tax penalties may be involved. A lawyer may be able to formulate a reasonable strategy for seeking assets that will pose the least risk of financial penalties during one's retirement years.

No Comments

Leave a comment
Comment Information
Get in touch

How Can We Help You?

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Wyomissing Office
1200 Broadcasting Road
Suite 101
Wyomissing, PA 19610

Toll Free: 866-232-1913
Phone: 717-345-3208
Phone: 610-478-7725
Wyomissing Office Location

Lancaster Office
8 N. Queen Street
Suite 1102
Lancaster, PA 17602

Toll Free: 866-232-1913
Phone: 570-362-6837
Phone: 717-207-8375
Lancaster Office Location

610-816-0935 Berks County 717-345-3208 Lancaster County 570-362-6837 Schuylkill County 866-232-1913 Toll Free
610-478-8365 Fax
BBB Accredited Business Facebook