How Will a Gray Divorce Impact My Social Security Benefits?

 Posted on January 10, 2025 in Divorce

Divorces later in life, often referred to as gray divorce, are on the rise as more and more couples over the age of 50 choose to part ways. While emotions may run high, financial stability is one of the most critical aspects of a gray divorce. For those nearing retirement, Social Security benefits often play a pivotal role in this equation. Understanding how these benefits are divided and exploring strategies to maximize entitlements can significantly affect your financial future. With guidance from an Illinois family law attorney, you can work to secure a stable post-divorce life.

What Happens to Social Security Benefits During a Gray Divorce?

One of the most common questions in a gray divorce is whether Social Security benefits can be divided between the divorcing spouses. While federal law does not allow Social Security benefits to be split like other marital property in a divorce, one spouse may still be eligible for spousal benefits based on the other spouse’s work history. To qualify for spousal benefits:

• The marriage must have lasted 10 or more years

• The person seeking spousal benefits must not be remarried

• The person seeking spousal benefits must be at least 62 years old to receive reduced benefits or wait to reach retirement age for the full amount

How Can Divorcing Spouses Maximize Their Social Security Benefits?

Planning is essential for maximizing Social Security benefits during and after a gray divorce. Some strategies to consider include:

• Determine Eligibility for Spousal Benefits: If your marriage lasted at least 10 years, understand your eligibility to claim spousal benefits. These benefits are especially helpful for those who earned significantly less than their spouse during the marriage.

• Delay Benefits, If Possible: Waiting until full retirement age, or even later, can increase the monthly amount you receive.

• Coordinate Benefit Timing: Working with a financial planner or divorce attorney to determine the best time to claim benefits can help both spouses optimize their total benefits.

Does Illinois Law Affect Social Security in a Gray Divorce?

While Social Security is governed by federal law, state laws can indirectly impact how gray divorces will play out financially. In Illinois, marital property is divided equitably rather than equally. This means that while Social Security itself is not divided, other retirement accounts or marital assets may be divided in a way that accounts for the value of Social Security benefits. For instance, one spouse may receive a larger portion of a pension or other assets if the other spouse is expected to receive significant Social Security payments.

Additionally, state law requires full financial disclosure during divorce proceedings. This ensures that both spouses have a clear understanding of their assets and income sources. A skilled attorney can help you navigate Illinois divorce laws and protect your financial future.

Contact a Kendall County, IL Divorce Attorney for Help With Financial Planning

If you are going through a gray divorce, it is very important to understand how Social Security benefits will impact your post-divorce financial plans. A Yorkville, IL gray divorce attorney at Divorce Over 50 - Goostree Law Group can help you with these complex issues and advocate for your best interests. Call 630-634-5050 today to schedule a free consultation and learn how we can assist with your case.