The money people earn and the resources they save can help ensure their comfort during their retirement years. Those assets can be at risk during a divorce. Typically, pensions and retirement savings are subject to division when people divorce.
However, financial resources owned by retiring adults aren’t the only form of support they rely on after leaving full-time employment. There are also two important retirement benefits that many people require to ensure their comfort and safety during their golden years.
Many spouses who are close to or past the age of retirement may worry about Medicare benefits and Social Security retirement benefits as much as they worry about retirement savings and other assets when they divorce. It is normal for lower-earning spouses to worry that they could lose crucial retirement benefits because they divorce.
Dependent spouses have protection under the law
Those concerned about Medicare or Social Security retirement benefits likely did not spend the entirety of their adulthood working in well-paid jobs. Instead, they may have worked part-time or stayed out of the workforce for years to allow their spouse to focus on their career.
They may not be eligible for benefits on their own or may only receive a tiny portion of the benefits that their spouse could receive. Thankfully, the rules for both Medicare and Social Security retirement benefits address the possibility of divorce.
So long as the spouse’s remained married for at least 10 years prior to the divorce, the spouse with lower income can qualify for benefits using the other spouse’s employment history. Medicare coverage is available to stay-at-home parents and other dependent spouses after ending a marriage that lasted a decade or longer.
Social Security retirement benefits are also available to dependent spouses who do not qualify for retirement benefits based on their own employment history. Those who may qualify but expect to receive far less than their spouses can potentially supplement their Social Security retirement benefits based on the employment history of their spouse.
That claim from the other spouse does not diminish what the higher-earning spouse receives in Social Security benefits. Provided that people strategize carefully, they can preserve retirement savings and access the benefits that they require for their comfort during retirement.
Discussing marital circumstances and financial concerns with a skilled legal team can help those preparing for divorce better understand their options. Both retirement benefits from Social Security and Medicare coverage are often still available to lower-earning spouses after a divorce.