Gray divorces often have major consequences for retirement. A gray divorce occurs when people are close to or past the age of retirement. Couples in their 50s or beyond who have remained married for decades sometimes realize that their relationships are no longer sustainable.
When they divorce, there may be uncertainty about the financial future of the spouses. After all, they have to use their resources to support two separate households. People often worry about their retirement savings and pensions. Thankfully, those assets are usually part of the marital estate and subject to division. It is possible to split them or at least balance their retention with other choices during property division.
Those who may not have worked during the marriage or who focused more on the family than on their careers may feel anxious about the possibility of losing critical retirement benefits. Dependent and lower-earning spouses need to know what happens with federal benefits after a divorce.
Long-term marriages create eligibility
Most people who receive Medicare health insurance during retirement are eligible because of their own employment. However, dependent and lower-earning spouses can qualify for benefits based on the work history of their spouses. Provided that the marriage lasted at least a decade, dependent spouses can qualify for Medicare benefits based on a spouse’s work history even after they divorce.
Similar rules apply to Social Security retirement benefits. Lower-earning spouses may be eligible for retirement benefits based on their work history but may receive far less than their spouses. They may be able to request the supplementation of their lower benefits based on what their spouse earned during the marriage.
If they are not eligible for Social Security retirement benefits, they could qualify based on their spouse’s employment history. As with Medicare, a 10-year marriage prior to divorce makes a spouse eligible for Social Security retirement benefits based on the other spouse’s employment. The benefits request of the lower-earning spouse does not diminish what the other spouse receives from Social Security when they retire.
Discussing personal concerns about an upcoming gray divorce with a skilled legal team can help people understand what to expect. With the right knowledge and assistance, people may be able to retire comfortably after ending a dissatisfying marriage.
