When older couples decide to divorce, the process is often more complicated than it is for younger couples. After all, they have remained married for longer and have more shared resources than younger couples. One spouse might depend on the other for medical or financial support.
Gray divorces involving people in their 50s or beyond can be particularly challenging to navigate. Spouses who earned less during their working years may worry about whether they can retire at all after divorce. They may depend on their spouse for retirement savings and for key government benefits.
Many retired adults rely on Social Security retirement benefits to supplement their savings. They also depend on Medicare health coverage to pay for basic medical. Older spouses worried about eligibility for Medicare and Social Security retirement benefits may need to learn about their rights as they prepare for divorce.
Divorce may not affect eligibility
Lower-earning or dependent spouses often rush to the conclusion that they are ineligible for benefits because of their limited employment history. However, they may be eligible for key retirement benefits based on their marital history.
Those who marry a wage earner and remain married for 10 years or longer may be eligible for government benefits during retirement based on income of their wage-earning spouse. People who might not qualify for Medicare on their own could be eligible based on the employment history of their spouses.
After 10 years of marriage, they can qualify for Medicare based on a spouse’s employment history even after they divorce. A similar rule applies to Social Security retirement benefits. Lower-earning or dependent spouses can qualify for Social Security retirement benefits based on the employment history of their wage-earning spouse if the marriage lasted at least a decade.
If they worked but earned less than their spouse did, they can potentially supplement their benefits based on the work history of the higher-earning spouse. The lower-earning or dependent spouse seeking Social Security retirement benefits does not prevent the higher-earning spouse from qualifying or reduce the benefits that they receive.
People who feel anxious about their financial status during retirement may feel more confident about divorcing once they learn about their eligibility for benefits. They may also be able to request a portion of the accumulated retirement savings or pensions of their spouse as well during the property division process.
Reviewing household financial records with a skilled legal team can be a good starting point for those concerned about their financial stability during their golden years. Lower-earning spouses can often retire comfortably after a gray divorce if they know the rules that apply to key benefits and assets.