How Family Changes Affect Your Benefits
Life is not static. Major events like the death of a loved one, a divorce, or even a remarriage can profoundly reshape a family’s financial landscape. These changes have a direct and significant impact on your income, which in turn affects your eligibility for programs like LIHEAP and other forms of utility assistance.
Understanding these connections is a key part of long-term financial planning and ensuring you access all the senior benefits you are entitled to during times of transition.
The Death of a Spouse
Losing a spouse is an emotionally devastating experience, and the financial aftermath can be just as challenging. For many senior couples, their household income is a combination of two Social Security checks. When one spouse passes away, that income is significantly reduced.
The surviving spouse is typically eligible for Social Security survivor benefits. This benefit is based on the deceased spouse’s earnings record. If the late spouse’s benefit was higher, the survivor will usually receive that higher amount. However, they will no longer receive their own, smaller benefit. The result is that the total household income drops, often by a third or more. This sudden decrease in income may make a widow or widower newly eligible for LIHEAP, even if they did not qualify as a couple. It is essential to re-evaluate your budget and apply for assistance programs immediately after such a loss.
Divorce After a Long-Term Marriage
Divorce later in life, often called “gray divorce,” is becoming more common. A divorce can split a household’s assets and income, leaving both individuals in a more precarious financial position. The Social Security Administration has specific rules for this situation.
If you were married for at least 10 years, are currently unmarried, and are age 62 or older, you may be able to collect benefits based on your ex-spouse’s work record. This is known as divorced spouse benefits. The best part is that your claiming these benefits does not affect your ex-spouse’s own benefits or the benefits of their current spouse. This can be a vital source of income, especially for a spouse who may have spent years out of the workforce. This income must be reported on a LIHEAP application, and it can be the difference that provides stability after a difficult life change.
Remarriage and Its Consequences
Remarriage can bring great happiness, but it also has financial implications that you must understand. If you are receiving survivor benefits from a deceased spouse, those benefits will generally end if you remarry before age 60. If you remarry after age 60 (or 50 if disabled), you can continue to receive them. Similarly, if you are receiving divorced spouse benefits, they will end if you remarry anyone other than your former spouse.
When you remarry, your LIHEAP eligibility will be based on the new, combined household income. Your new spouse’s income and assets will be counted along with yours. This could mean you no longer qualify for assistance. Before making a major life decision like remarriage, it’s wise to sit down and understand how it will affect your overall financial picture, including any benefits you currently receive.
General resources for seniors and their families can be found at the National Council on Aging (NCOA).
