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According to Social Security law, the wife is entitled to benefits on her ex-husband's record if she was married to him for more than 10 years and she didn't remarry.  The wife gets the same amount she would get if she were still married to him -- up to half of his benefit amount while he's still alive and possibly all of it when he dies.  And any amount she gets does not affect the amounts due her ex-husband or his current wife.  
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Yes. It is considered income and taxed accordingly.
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No.  It is not considered part of earned wages for your earnings cap.  The cap between ages 62 and 64 is $11,280 in 2002.  In your 65th year it is $30,000.  Exceeding the earnings cap can reduce your Social Security benefit by $1 for every $3 you are over.  After age 65 there is no cap..
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Yes. You also may have to provide a marriage license if applicable.
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