The Impact of Alimony on Social Security Benefits in Nevada

For residents of the Silver State, navigating the intricacies of spousal support and its effect on your long-term financial stability—including Social Security benefits—is a crucial step.

While Nevada law governs alimony, Social Security is a federal program, and the intersection of the two can be confusing.  

This blog post will clarify how alimony payments affect Social Security benefits, what you need to know about collecting from an ex-spouse’s record, and the unique factors that apply to Nevadans.

Alimony as a Factor in Nevada Divorce

Nevada, as a community property state, presumes that all assets acquired during a marriage belong equally to both spouses and should be divided as such. However, when it comes to alimony (also known as spousal support), there is no rigid formula. Instead, a Nevada court will consider a variety of factors to determine if alimony should be awarded, how much it should be, and for how long.

These factors often include:

• The length of the marriage.
• The financial condition and earning capacity of each spouse.
• The standard of living established during the marriage.
• The age and health of both individuals.
• Contributions made by a spouse as a homemaker or toward the other’s career.

While Social Security benefits themselves cannot be divided as a community asset in a divorce, a Nevada court will consider them as “income” for the purpose of calculating an alimony award. This means if one spouse is already receiving Social Security benefits, those funds will be factored in when the court decides the amount of alimony, if any, that needs to be paid.

How Alimony Payments Affect Your Own Social Security

The most common question regarding this topic is whether paying or receiving alimony will impact your own Social Security retirement benefits.

The answer is straightforward: alimony payments do not have a direct impact on your Social Security benefits.

Your individual Social Security retirement benefit is calculated based on your own earnings history—specifically, your highest 35 years of work. The Social Security Administration (SSA) does not count alimony as earned income, so it will not increase your future benefits. Similarly, paying alimony will not reduce the benefits you are entitled to receive based on your own work record.

It is a common misconception that if a former spouse begins collecting Social Security, your benefit will be reduced. This is a myth. The SSA handles spousal benefits as a separate entitlement, and one person’s collection does not reduce the other’s. In fact, Social Security benefits are only subject to garnishment in very specific circumstances, such as for unpaid child support, restitution, or alimony.

Collecting Social Security from a Former Spouse’s Record

This is where the federal rules of Social Security become highly relevant. Even if you’ve been awarded alimony in Nevada, you may also be eligible to collect Social Security benefits based on your former spouse’s earnings record. This can be a significant advantage, particularly for a spouse who may have a limited work history due to their role in the marriage.

To qualify for these “divorced spouse’s benefits,” you must meet several federal requirements:

1. Marriage Duration
   You must have been married to your ex-spouse for at least 10 years.
2. Age Requirement
   You must be at least 62 years old.
3. Marital Status
   You must currently be unmarried. If you remarry, your eligibility for benefits on a former spouse’s record typically ends..
4. Ex-Spouse Eligibility
   Your ex-spouse must be entitled to Social Security retirement or disability benefits. They do not have to be collecting them yet, but they must be eligible.
5. Benefit Comparison
   The benefit you would receive based on your own work record must be less than the benefit you would receive on your ex-spouse’s record.

If you meet these criteria, you may be entitled to a benefit amount equal to up to 50% of your ex-spouse’s full retirement benefit. This benefit is paid directly to you by the SSA and does not reduce your ex-spouse’s benefit. In fact, the SSA does not even notify them that you have applied.

For Nevadans going through what is sometimes called a “gray divorce“—a divorce later in life—understanding this distinction is vital. It can be a game-changer for financial security in retirement. Your Nevada divorce decree might establish an alimony obligation, but it cannot legally prevent you from claiming these federal benefits if you meet the SSA’s criteria.

Any clause in a state divorce agreement that attempts to waive a spouse’s right to their ex’s Social Security benefits is unenforceable.

The Bigger Picture

Don’t let the complexities of alimony and Social Security benefits jeopardize your financial future. These two critical areas are often handled separately but can have a profound impact on one another, from initial calculations to future modifications. The rules are complex, and a single mistake can have long-lasting consequences.

At Smith Legal Group, we have extensive experience navigating the intersection of Nevada divorce law and federal Social Security regulations. Our alimony lawyers will handle everything, ensuring you get the full picture and a strategy tailored to your specific situation.

Contact us at 702-410-5001 to schedule your free consultation at our Henderson, NV office.