Social Security benefits and common-law marriage: Oil and water?

In some cases, spousal benefits available without a marriage certificate.
JUN 20, 2014
I spend a lot of time answering readers' questions about Social Security benefits for married couples. But in some cases, spousal benefits are available to couples who live together as common-law partners without the benefit of a marriage certificate. According to the Social Security Handbook, a common-law marriage is one in which neither a religious nor civil ceremony was held. In certain states, a common-law marriage may be entered into if a man and a woman agree to be married for the rest of their lives. Most states, even those in which a man and woman cannot enter into a valid common-law marriage, generally recognize a common-law marriage that has been validly entered into in another state. But here's a twist posed by an InvestmentNews reader: Mark Bass, a financial adviser from Lubbock, Texas, wrote to me about an interesting case. His clients, Robert and Carolyn, were married 19 years and later divorced. Robert, now 62, married Betsy eight years ago. Carolyn, now 61, has lived with Jim more than 15 years. They consider themselves married by common law. Here's Mr. Bass' question: When Carolyn turns 62, can she file for spousal benefits based on her former marriage to Robert? Generally, a person can receive benefits as a divorced spouse on a former spouse's Social Security record if he or she was married to the former spouse for at least 10 years, is at least 62 years old, is unmarried, and is not entitled to a higher Social Security benefit on his or her own record. In addition, if the former spouse is eligible for a benefit, but has not yet applied for it, the unmarried divorced spouse can still receive a benefit if he or she meets the eligibility requirements listed above and has been divorced from the former spouse for at least two years. “I know that if Carolyn is unmarried, she can receive spousal benefits on her ex-husband's earnings record,” Mr. Bass wrote. “But does her common law marriage affect her ability to receive those benefits?” That's a great question and one that I have never encountered before. So I asked the folks at the Social Security Administration. “Social Security follows the state laws when it comes to recognizing common-law marriage,” Social Security spokeswoman Kia Anderson confirmed in an e-mail. “Based on the limited information provided, it depends.” Ms. Anderson recommended that Mr. Bass and his client Carolyn contact Social Security at (800) 772.1213 or visit her local office to inquire about her situation. According to unmarried.org, Texas recognizes common law marriages between a man and a woman, but not same-sex couples. To establish a common-law marriage in the Lone Star State, a man and a woman must sign a form provided by the county clerk, must agree to be married, live together and represent to others that they are married. So, the short answer is: I don't know if Carolyn's common-law marriage to Jim will make her ineligible for spousal benefits on her ex-husband's earning record. But it's certainly an interesting case. And I hope Mr. Bass shares his answer with the rest of us.

Latest News

Stratos Wealth Holdings closes 11 acquisitions in push for advisory scale
Stratos Wealth Holdings closes 11 acquisitions in push for advisory scale

RIA aggregator adds $4.8 billion in client assets across seven states as demand grows for alternatives to traditional succession models.

Beyond wealth management: Why the future of advice is becoming more human
Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management

Shareholder sues FS KKR Capital board, alleges NAV and dividend cover-up
Shareholder sues FS KKR Capital board, alleges NAV and dividend cover-up

Shareholder targets FS KKR Capital's directors over alleged portfolio valuation and dividend missteps.

UBS loses $1.2 million arbitration claim linked to variable annuities and margin
UBS loses $1.2 million arbitration claim linked to variable annuities and margin

UBS has a history of costly litigation stemming from the sale of volatile investment products.

'We are monitoring the situation,' SEC says of private funds
'We are monitoring the situation,' SEC says of private funds

New director David Woodcock puts firms on notice over fees, conflicts, and liquidity risk as private credit shows signs of stress.

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management

SPONSORED Durability over scale: What actually defines a great advisory firm

Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline