Ask Terry Questions Divorce / Social Security

Divorce / Social Security

By Terry Savage on February 21, 2021 | Financial Planning / Retirement

I have just turned 59 and am currently negotiating divorce settlement (with counsel). I have been married for 21 years. I have worked and contributed into the system since I was 16. My soon to be ex is a greencard holder who has applied for US citizenship and has been employed and contributing into the SS system for approx 19-20 years. Will MY benefits be effected by the settlement?

Terry Says

No, you each have your own Social Security record. You will receive your benefits based on YOUR earnings record. And you should check out that projected amount at SocialSecurity.gov where you can create your own “my Social Security” secure account.
(If you had been married more than 10 years and had NO or little work history, you would be entitled to half of his benefits. And the same for him.) But it does not impact your benefits since you have your own work history.

As a side thought do not let your divorce settlement include an assumption that you will claim benefits early. Plan to wait until at least age 67, and hopefully longer, to claim your SS benefits.
AND, your real problem now is health insurance (and he has the same problem) unless you each get those benefits through your employment. Look into those costs, as well, before you finalize your agreement. A divorce with loss of health benefits is a “triggering” opportunity to enroll in “Obamacare” — at any time. There is actually a new open enrollment period starting now if you are close to finalizing. To learn your costs and coverages, go to www.eHealth.com.

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