Gray divorce occurs later in life after years of marriage. People who are close to or past retirement age may divorce due to health issues, growing apart over the years or disparate values.
Gray divorces can have a profound impact on people’s standard of living during their golden years. Typically, married couples must divide their retirement savings and pensions when they divorce. Yet, people who earned less or stayed home to raise their family may worry about their eligibility for certain government benefits after a gray divorce.
What happens to Medicare health benefits and Social Security retirement benefits after a gray divorce?
Benefit programs have divorce rules
Divorce is relatively common, so government benefit programs address the possibility of a marriage ending close to or during retirement. Spouses who may only qualify for Social Security retirement benefits for Medicare health insurance based on a working spouse’s employment history may still be eligible.
Under current rules, those who stayed married for at least 10 years can potentially qualify for Social Security retirement benefits or Medicare coverage based on a spouse’s employment history. For those seeking Social Security benefits, it is possible to qualify without any work history or to supplement lower benefits based on a former spouse’s work history. The claims made by dependent spouses do not reduce what the working spouse receives.
Divorcing later in life does not prevent people from qualifying for Medicare or Social Security because of a change in their marital status. Yet, it cannot be denied that – generally speaking – people who have guidance when addressing the financial implications of a gray divorce can better ensure that they have the resources and support they need for comfort in their golden years.