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Marital & Family law Section Chair : SusanMilesWhitaker – BayAreaLegalServices , Inc . uncoveringthelandmines amongsocialsecuritybenefits canpreventexpensivemistakes anddistinguishyoufrom yourcompetition .
Although attorneys are not financial advisors or planning for clients ’ retirement , uncovering the landmines among Social Security benefits can prevent expensive mistakes and distinguish you from your competition . 1
• Mistake # 1 : Relying on Benefit Estimates from Social Security Statements The Social Security Administration ’ s calculation assumes that each person ’ s income will remain level until taking the benefit . What if the worker instead earns less , or retires in the meantime ? Your client will receive less than expected , and find out too late
to make up the difference . Tip : Counsel your client that if the ex ’ s taxable earnings do not remain level or grow , her benefit could be considerably less .
• Mistake # 2 : Assuming Your Client is Entitled to Ex-Spouse ’ s Benefits Your client may be entitled to collect on their ex-spouse ’ s benefits if the marriage lasted ten years or longer . However , at the time she would like to start collecting on the ex-spouse ’ s record , your client must a ) wait two years after the divorce if the ex is not already collecting benefits , b ) be 62 or older , and c ) be single , or have remarried after age 60 . Her exspouse must also be at least age 62 .
If these conditions are met , your client can receive up to one-half of the ex ’ s full retirement age benefit . Although this will not increase if your client waits beyond her full retirement age , her benefit will be cut if she collects early . At 62 , for example , your client is likely to receive only one third of the ex ’ s full retirement amount , not one-half . Finally , your client can collect on the ex ’ s benefits only if she would receive more than on her own record . She cannot collect both . Tip : The danger is that if your client ’ s ex is significantly younger , she may be waiting several years
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