A whopping 91% of Americans over the age of 50 don't understand what factors determine the amount they can potentially receive in Social Security benefits, a survey from the Nationwide Retirement Institute found.
There are several factors that can affect how much you receive in Social Security benefits, such as the age at which you claim, whether you continue working after you claim benefits, and how much you earned during the years you paid into Social Security.
One factor that's easy to overlook, however, is divorce. If you are currently divorced and were married for at least 10 years, you or your ex-spouse could be earning more in Social Security benefits than you think.
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How divorce affects Social Security
Not all divorced couples are eligible to receive additional benefits once they start claiming Social Security, and there are certain requirements you'll have to meet.
The first thing to consider is how your benefits compare to your ex-spouse's. If you're receiving more in Social Security benefits than your ex-spouse (or if you haven't claimed yet but are expected to receive more than your ex-spouse), you're not eligible for any additional money each month. But if you're receiving less each month than your ex, you may be eligible for an increase in benefits based on your ex-spouse's work record.
Assuming you're receiving less than your ex-spouse in benefits, there are a few other requirements you'll need to meet. First, you and your former spouse need to have been married for at least 10 years, and you cannot currently be married (although it doesn't matter whether your ex-spouse has remarried or not). In order to start claiming benefits, you also need to be at least 62 years old.
If you and your ex-spouse are old enough to file for benefits but your ex hasn't claimed them yet, you can still claim your benefits based on their work record if you have been divorced for at least two years. Also, if you're eligible for benefits based on your own work record, that money will be paid out first. Then if you're also eligible to receive extra benefits based on your ex-spouse's record, you'll receive an additional amount each month.
Exactly how much extra you'll receive depends on the age at which you claim. In order to receive the full amount you're entitled to, you'll have to wait until your full retirement age (FRA) -- which is either age 66, 67, or somewhere in between. If you claim before then (as early as age 62), your benefits will be reduced. By waiting until your FRA, assuming you're eligible to receive benefits based on your ex-spouse's record, you can receive half of the amount he or she is receiving in benefits.