How a New Marriage Affects Your Retirement Benefits

There are many benefits married couples can enjoy. Aside from spending your life with your loved ones, there are financial benefits. Married couples generally have preferred tax filing status. Spouses are also eligible for some insurance benefits and get inheritance rights. A marriage can also affect your retirement benefits.

Discuss your financial situation with your new spouse to make sure you are both prepared for when you retire. For more information about how marital status affects your retirement benefits, contact an experienced family law attorney.

What Retirement Benefits Are Affected by a New Marriage?

Americans have many different types of retirement accounts to provide income after retiring. Types of retirement accounts can include:

• Social Security
• Individual Retirement Account (IRA)
• Roth IRA
• 401(k) and 403(b)
• Profit-sharing plans
• Defined benefits plans
• Employee Stock Ownership Plan (ESOP)
• Pension

A new marriage can change your retirement plans because your new spouse can be named as a beneficiary, and your spouse has inheritance rights. With a new marriage, your new spouse can receive some of your retirement benefits after you pass away. Similarly, you can be the beneficiary of your deceased spouse’s retirement benefits.

If you have a will or trust, your property will pass according to your estate plans. If you don’t have a will, your property will pass based on state intestacy laws. These laws generally ensure that your spouse or children will receive your property.

Some retirement benefits don’t go through the court probate process. They will pass automatically to your named beneficiaries after death. Talk to your family lawyer about what changes you need to make after getting married.

Changing Your Name on Retirement Accounts?

If you are going to change your name after getting married, you need to update your retirement accounts to reflect the name change. Get certified copies of your marriage certificate and proof of identity.

You may be able to do a name change online or by visiting your local Social Security Administration (SSA) office. Contact your other retirement account representatives to find out about a name change. Update your other savings accounts, credit cards, and other personal finance accounts.

How Will a New Marriage Affect Social Security?

The most common type of retirement account is Social Security benefits. Paycheck withholdings go into your Social Security account over time. Once you have enough work credits, you qualify for retirement income. The amount of Social Security benefits you get can depend on your work history, income, and the age you retire.

A new marriage can affect Social Security options, but it will not limit your own Social Security benefits. Your benefit amount will stay the same if you marry, get a divorce, or remarry. Your current spouse can get Social Security benefits based on their own work record or your work history, whichever is a higher amount.

If your new spouse has a higher Social Security benefit amount, you can get benefits based on their earning record or your own work record. You can take the higher spouse’s benefits. If your new spouse passes away, you can continue to get benefits as the surviving spouse.

What Other Retirement Accounts Are Affected by Marriage?

Many pensions, defined-benefit plans, 401(k)s, and defined contribution plans also have survivor benefits. Most employer-sponsored retirement plans require the primary beneficiary to be your spouse. Spousal benefits go to the spouse after the death of the account holder. For questions about naming your new spouse as a beneficiary, contact your account representatives.

Will a New Spouse Get Retirement Survivor Benefits?

Your new spouse can get Social Security survivor benefits. For eligibility, your surviving spouse:

• Has to be age 60 or older (or 50-59 with a disability)
• Has to have been married to you for at least nine months before your death
• Did not remarry before age 60

Your ex-spouse may still be able to get survivor benefits based on your work record. To qualify, you and your ex-spouse had to be married for at least 10 years.

Do You Need To Update Your Retirement Accounts After Marriage?

You should review your retirement accounts after a new marriage or significant life event. Your retirement accounts may name a beneficiary. A beneficiary of a retirement plan receives the benefits of the retirement account after the account holder dies.

Some accounts require your beneficiary to be a spouse or a child. Other retirement accounts allow you to name anyone as a beneficiary. If you want to add your new spouse as your primary beneficiary (or a secondary beneficiary), you need to update your account information. Contact your retirement account representative to add, remove, or change your beneficiaries.

Can Your Ex-Spouse Get Your Retirement Benefits?

Your former spouse can also get SSA retirement benefits based on your work record or their work record. This does not change your benefits. An ex-spouse can get up to 50% of your Social Security retirement benefits at full retirement age.

Will Your New Spouse Get Your Retirement Benefits in a Divorce?

The court can divide your retirement benefits in a divorce. Any contributions made during the marriage may be marital property. This includes contributions to your individual retirement account. This includes employer contributions made during the marriage. However, your retirement account contributions made before getting married are generally separate property.

How Can a Family Lawyer Help?

Combining your financial plans after marriage can help prepare for your future. Talk to a family lawyer about how a new marriage can change your financial situation.