Factoring Social Security into Property Division Choices

For older Utah residents who are preparing to divorce, the decisions made throughout that process have a different weight than those made by couples in their 20s and 30s. Older spouses simply have less time left within the workforce to make up for serious financial losses, and must make property division choices that reflect their goals for retirement. One important aspect of that process is understanding how Social Security benefits will factor into one’s budget.

There rules that dictate Social Security are incredibly complex, and many individuals are unsure what their best options are for maximizing this important benefit. For those who are approaching a divorce, the ramifications of securing the best possible Social Security outcome are even more important. One option available to divorced seniors is the right to make a claim against the work record of a former spouse.

If a marriage lasted for at least 10 years and has been over for at least two years, a divorced spouse may be entitled to claim Social Security benefits based on the work record of an ex husband or wife. While this will likely result in a smaller monthly payment at first, the true benefit comes in the ability to defer making one’s own claim until they reach or approach their full retirement age. At that point, their payments would be far greater than if they had started claiming years earlier.

When moving through a Utah divorce, spouses should be sure to include these factors into their property division and spousal support negotiations. For a spouse who expects to receive lower Social Security benefits during the first few years of their claim, it may be wise to ask for higher spousal support payments during that period of time, with a reduction in later years. Another strategy would be to negotiate for assets that provide a monthly income, versus focusing on retaining the family home or other forms of property.

Source: PBS Newshour, Why Baby Boomers Are Making the Wrong Social Security Moves, Larry Kotlikoff, Nov. 18, 2013

Published On: December 4th, 2013Categories: Division of PropertyComments Off on Factoring Social Security into Property Division Choices
Share This Story, Choose Your Platform!
About the Author: Marco Brown
6d8a23cf114c43e68fc064216eff550b?s=72&d=mm&r=g
Marco C. Brown was named Utah’s Outstanding Family Law Lawyer of the Year in 2015. He graduated with distinction from the University of Nebraska College of Law in 2007 and is currently the managing partner of Brown Family Law, LLC.
Contact Us – We Are Here to Help You

Schedule a time to talk with us – we are here to help you. When you meet with your attorney, we will go over your entire case, your children, your money and everything else that’s important to you. Our goal is to remove the fear associated with divorce by protecting your money and maximizing your time with your kids, all within 3-6 months. We look forward to meeting with you!

Call us 24/7 at 801-685-9999 to Speak with a Live Representative
Get A Legal Consultation With An Experienced Utah Attorney
Your privacy is 100% guaranteed, your information will never be sold or shared.

While this website provides general information, it does not constitute divorce advice. The best way to get guidance on your specific divorce issue is to contact a lawyer. To schedule a divorce consultation with an attorney, please call or complete the intake form above.

The use of the Internet (or this form) for communication with the firm (or any individual member of the firm) does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.