Divorce can be a challenging process, both emotionally and financially. When it comes to social security benefits, the divorce process can become even more complex. In Ohio, social security benefits are subject to equitable distribution, meaning that they can be divided between spouses in a divorce settlement. It’s essential to understand how social security benefits work in Ohio divorce cases to ensure that both parties receive a fair share of the benefits. In this article, we’ll discuss how to maximize social security benefits during and after a divorce in Ohio.
Social Security Basics
Social security is a federal program that provides financial assistance to eligible individuals and their families. According to the Social Security Administration (SSA), eligible individuals can receive benefits based on their work history or that of a spouse or ex-spouse. The amount of the benefit depends on the individual’s earnings history and when they start collecting benefits.
Social Security Benefits And Divorce
When it comes to divorce, social security benefits can be a contentious issue. In Ohio, social security benefits are considered marital property, meaning that they can be subject to division during a divorce. If a couple was married for at least ten years, then the non-working or lower-earning spouse may be entitled to the higher-earning spouse’s social security benefits.
Maximizing Social Security Benefits In A Divorce
There are several strategies that both parties can use to maximize social security benefits during and after a divorce.
Determining Eligibility
Firstly, it’s crucial to determine whether either spouse is eligible to receive social security benefits based on their work history. If both spouses meet the eligibility criteria, it’s essential to compare the amounts to determine which benefit would be more financially advantageous. In Ohio, spouses who were married for at least ten years may be entitled to their ex-spouse’s social security benefits even if they have remarried.
Timing The Collection Of Benefits
Secondly, timing the collection of benefits is vital. Generally, individuals can start collecting social security benefits as early as age 62 but will receive a reduced benefit. Delaying the collection of benefits until full retirement age (currently 66 or 67, depending on birth year) results in a higher monthly benefit. If a divorced spouse is entitled to benefits based on their ex-spouse’s work history, they can start collecting as early as age 62 or wait until full retirement age to receive the full benefit.
Considering Survivor Benefits
In addition to retirement benefits, social security also provides survivor benefits. If a divorced spouse passes away, the surviving ex-spouse may be eligible for survivor benefits as long as they were married for at least ten years. Survivor benefits are equal to 100% of the deceased ex-spouse’s benefit amount.
Coordinating Benefits With Retirement Savings
Lastly, it’s essential to coordinate social security benefits with other retirement savings. Individuals who have retirement savings such as a 401(k) or IRA can use those savings to supplement their social security benefits. Couples can also use spousal IRA contributions and other strategies to maximize benefits.
Conclusion
Divorce is never easy, but understanding how social security benefits work can make the process less stressful. Ohio residents who are going through a divorce should work with an experienced attorney to ensure that they receive a fair share of social security benefits. If you’re going through a divorce, take the time to determine your eligibility for social security benefits and consider the strategies outlined above to maximize your benefits.